The document discusses the fiscal cliff faced by the U.S. government at the end of 2012. It provides background on the Budget Control Act of 2011 and the series of disagreements between Democrats and Republicans that led to failure to reach a budget deal. Lawmakers had 3 options: do nothing and let policies take effect, cancel some or all tax increases and spending cuts, or reach a compromise. On January 1, 2013, the Senate agreed to a last-minute deal that increased taxes on individuals making over $400,000 and couples over $450,000 but postponed discussion of spending cuts. The deal provided some short-term certainty but left major long-term issues around the national debt unaddressed.
If Congress and the President cannot agree on at least short-term legislation funding federal operations, a government shutdown will result. This primer provides basic information to better understand what could happen.
This infographic provides an overview of CBO's report, The 2016 Long-Term Budget Outlook. Gain quick insight into why CBO projects a substantial imbalance in the federal budget beyond the next 10 years.
If Congress and the President cannot agree on at least short-term legislation funding federal operations, a government shutdown will result. This primer provides basic information to better understand what could happen.
This infographic provides an overview of CBO's report, The 2016 Long-Term Budget Outlook. Gain quick insight into why CBO projects a substantial imbalance in the federal budget beyond the next 10 years.
At 78 percent of gross domestic product (GDP), federal debt held by the public is now at its highest level since shortly after World War II. If current laws generally remained unchanged, CBO projects, growing budget deficits would boost that debt sharply over the next 30 years; it would approach 100 percent of GDP by the end of the next decade and 152 percent by 2048. That amount would be the highest in the nation’s history by far. The prospect of large and growing debt poses substantial risks for the nation and presents policymakers with significant challenges.
Presentation by Christina Hawley Anthony, Chief of the Projections Unit in CBO’s Budget Analysis Division, to the National Conference of State Legislatures Base Camp.
North American Fuel Market Updates | August 2018Breakthrough
The end of crude shortages in Libya and Canada, a forecast for the International Maritime Organization (IMO) 2020 Sulfur Compliance, and mid-year diesel fuel tax updates – find this and more in our latest Advisor Brief and on our blog.
Comments in opposition to SB 199 & SB 200 (2.20.2022)Brad Keithley
The comments of Alaskans for Sustainable Budgets in opposition to Senate Finance Committee bills SB 199 & SB 200, which propose to substantially restructure and cut the Permanent Fund Dividend.
HB 202 (HFIN): Comments of Alaskans for Sustainable BudgetsBrad Keithley
Comments filed on behalf of Alaskans for Sustainable Budgets with the House Finance Committee on HB 202 (Rep. Merrick) proposing a restructuring of and cuts in the Alaska Permanent Fund Dividend (PFD).
A primer on national debt and the debt ceiling with a focus on the 2011 debt ceiling crisis and the Budget Control Act as well as an analysis of scenarios for debt reduction in 2013
In 2020, CBO estimates a deficit of $1.0 trillion, or 4.6 percent of gross domestic product (GDP). Under current law, the projected gap between outlays and revenues increases to 5.4 percent of GDP in 2030. Federal debt held by the public is projected to rise over the coming decade, from 81 percent of GDP in 2020 to 98 percent of GDP in 2030. It continues to grow thereafter, in CBO’s projections, reaching 180 percent of GDP in 2050, well above the highest level ever recorded in the United States.
Alaska's Fiscal Situation: Where We've Been, Where We're Headed (10.26.2019)Brad Keithley
A presentation to UAA Prof. Willie Hensley's "Alaska Policy Frontiers" seminar on October 26, 2019, on Alaska's current fiscal situation, how we got here, where we are and the options for where we go from here.
At 78 percent of gross domestic product (GDP), federal debt held by the public is now at its highest level since shortly after World War II. If current laws generally remained unchanged, CBO projects, growing budget deficits would boost that debt sharply over the next 30 years; it would approach 100 percent of GDP by the end of the next decade and 152 percent by 2048. That amount would be the highest in the nation’s history by far. The prospect of large and growing debt poses substantial risks for the nation and presents policymakers with significant challenges.
Presentation by Christina Hawley Anthony, Chief of the Projections Unit in CBO’s Budget Analysis Division, to the National Conference of State Legislatures Base Camp.
North American Fuel Market Updates | August 2018Breakthrough
The end of crude shortages in Libya and Canada, a forecast for the International Maritime Organization (IMO) 2020 Sulfur Compliance, and mid-year diesel fuel tax updates – find this and more in our latest Advisor Brief and on our blog.
Comments in opposition to SB 199 & SB 200 (2.20.2022)Brad Keithley
The comments of Alaskans for Sustainable Budgets in opposition to Senate Finance Committee bills SB 199 & SB 200, which propose to substantially restructure and cut the Permanent Fund Dividend.
HB 202 (HFIN): Comments of Alaskans for Sustainable BudgetsBrad Keithley
Comments filed on behalf of Alaskans for Sustainable Budgets with the House Finance Committee on HB 202 (Rep. Merrick) proposing a restructuring of and cuts in the Alaska Permanent Fund Dividend (PFD).
A primer on national debt and the debt ceiling with a focus on the 2011 debt ceiling crisis and the Budget Control Act as well as an analysis of scenarios for debt reduction in 2013
In 2020, CBO estimates a deficit of $1.0 trillion, or 4.6 percent of gross domestic product (GDP). Under current law, the projected gap between outlays and revenues increases to 5.4 percent of GDP in 2030. Federal debt held by the public is projected to rise over the coming decade, from 81 percent of GDP in 2020 to 98 percent of GDP in 2030. It continues to grow thereafter, in CBO’s projections, reaching 180 percent of GDP in 2050, well above the highest level ever recorded in the United States.
Alaska's Fiscal Situation: Where We've Been, Where We're Headed (10.26.2019)Brad Keithley
A presentation to UAA Prof. Willie Hensley's "Alaska Policy Frontiers" seminar on October 26, 2019, on Alaska's current fiscal situation, how we got here, where we are and the options for where we go from here.
An introduction to Linux Container, Namespace & Cgroup.
Virtual Machine, Linux operating principles. Application constraint execution environment. Isolate application working environment.
The research paper is based on the US Fiscal Cliff deal, a the popular term to describe the expiry of tax breaks and introduction of spending cuts leading to conundrum that the US economy faced at the end of 2012
What is the "fiscal cliff"? It's the term being used by many to describe the unique combination of tax
increases and spending cuts scheduled to go into effect on January 1, 2013.
2. Fiscal cliff; what it actually is?
A background
Going over the cliff (failure to reach the
deal)
Fiscal cliff deal – Details
Critical Appraisal and implications
Conclusion
References
Acknowledgements
1/8/2013 2
3. The term describes the conundrum that
U.S. government would have faced at
the end of 2012, when the terms of
Budget Control Act of 2011 were
scheduled to go into effect.
1/8/2013 3
4. Series of contentious disagreements
between the Democrats and the
Republicans resulting in:
Failure to reach deal on $1.2 trillion in
targeted budget savings leading to
spending cuts
Downgrade in the US credit ratings (due to
debt ceiling fight of August 2011) by
Standard and Poor’s
Meanwhile US debt soars to an
unsustainable path
1/8/2013 4
5. 3 Options for US lawmakers:
They could have let the policies
scheduled for the beginning of 2013
go into effect. Plus Side: reduced
deficit
They could have cancelled some or
all of the scheduled tax increases and
spending cuts. Flip Side: growing debt
1/8/2013 5
7. End of last year’s temporary payroll tax
cuts, hence 2% increase for workers
(from 4.2% to 6.2%)
End of certain tax breaks for businesses
Shifts in Alternative Minimum Tax
Roll back of the Bush Tax Cuts from 2001-
2003
1/8/2013 7
8. Beginning of taxes related to President
Obama’s health care law
Implications:
Higher taxes and spending cuts leading
to reduction in deficit by an estimated
$560 billion
1/8/2013 8
9. CBO (Congressional Budget Office)
estimated possible reduction in GDP and
increase in unemployment by 4% and 1%
respectively, in 2013
NAM (National Association of
Manufacturers) predicted 13% reduction
in GDP and 11% increase in
unemployment by 2015
1/8/2013 9
10. 3 hours before the deadline on January
1, 2013, the US Senate agreed to a deal
to avert fiscal cliff and increase the
revenue estimated to $620 billion over 10
years.
What does the deal contain?
Income Tax Rates:
Increased from 35% to 39.6% for individuals
earning more than $400,000 and couples
earning more than $450, 000.
1/8/2013 10
11. Estate Tax:
Increased from 35% to 40%
Alternative Minimum Tax
Adjusted for inflation
Unemployment Benefits
Extended for a year
1/8/2013 11
12. Obama tax credits:
Child care, tuition and research and
development taxes renewal
1/8/2013 12
13. The deal was cut on eleventh hour on
December 31st 2012, despite having
ample time of 507 days (since the
August, 2011, the debt ceiling
agreement)
While the package provides some short-
term certainty, it leaves a range of big
issues unaddressed.
1/8/2013 13
14. The deal addressed only the tax, and
postponed the discussion of spending
cuts for another two months.
On long term basis, the deal did little to
address the country’s debt load of $16.4
trillion
1/8/2013 14
15. The deal leaves Obama breaking his
promise of taxing 2% of wealthiest
Americans having income above
$200,000
Even though a deal was made to
prevent major tax spike , in fact 77% of
Americans will pay higher taxes in 2013
1/8/2013 15
16. In short, the fiscal cliff deal continues to
let Americans enjoy relatively higher
levels of government service at low
levels of taxation. The only way that is
possible is through heavy
borrowing, which future generations will
inherit.
1/8/2013 16