Patrice Hill of the Washington Times makes a very good point: the impact of the so-called “fiscal cliff” – Taxmageddon – is already being felt in the economy. People are frightened about the future, and so they are hunkering down.
And it’s no wonder. Here’s what the “cliff” looks like:
- reductions in itemized deductions and personal exemptions
- increases in taxes on capital gains and dividends
- the marriage penalty returning
- estate tax reinstated
- increase in the payroll tax
- cuts in unemployment benefits
- child tax credit cut in half
- 10 percent cut in military spending
- 8 percent cut in discretionary government spending
And these are just a few of what happens on January 1st if Congress does nothing about them.
Please understand that this is not a plea for Congress to “do something”! It’s just an iteration of