US faces 'fiscal cliff' in January 2013 that may trigger a new recession
In early January 2013, the US is facing about $607bn of tax increases and spending cuts that have resulted from the near debt default in July 2011 when a patchwork agreement was cobbled together by political leaders within two hours of shutting down the government. The so-called 'fiscal cliff' of automatic tax increases on expiry of time-limited tax cuts in 2001 and 2003 (known as the 'Bush tax cuts') and agreed spending cuts, will coincide with another federal debt limit debacle when the current limit of $16.4tn is expected to be hit.
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