What is the meaning of fiscal cliff?
The fiscal cliff refers to a combination of expiring tax cuts and across-the-board government spending cuts that create a looming imbalance in the federal budget and must be corrected to avert a crisis.
How do I determine my fiscal year?
The fiscal year is expressed by stating the year-end date. A fiscal year-end is usually the end of any quarter, such as March 31, June 30, September 30, or December 31.
What is fiscal deficit?
Definition: The difference between total revenue and total expenditure of the government is termed as fiscal deficit. It is an indication of the total borrowings needed by the government. While calculating the total revenue, borrowings are not included.
What is the meaning of the term fiscal cliff?
fiscal cliff. noun. a governmental or personal financial crisis that is brought on by economic factors or policies: High housing costs have pushed many families over the fiscal cliff. Some municipalities are on the edge of a fiscal cliff after years of overspending.
What was exempt from the fiscal cliff cuts?
Mandatory programs, such as Social Security, Medicaid, federal pay (including military pay and pensions) and veterans’ benefits would have been exempted from the spending cuts. The fiscal cliff would have increased tax rates and decreased government spending through sequestration.
What was the CBO baseline for the fiscal cliff?
The “CBO Baseline” (in red) shows the expected effects of the fiscal cliff under then-current law, i.e., if Congress took no action in 2012. The “Alternative Scenario” (in blue) represents what was expected to happen if Congress were to extend the Bush tax cuts and repeal the Budget Control Act -mandated spending reductions.
How did we avert falling off the fiscal cliff?
“Falling off” the fiscal cliff has been averted through new legislation that corrects for the shortfall or that authorizes greater levels of government debt, such as through the American Taxpayer Relief Act Of 2012.