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What does fiscal cliff mean?

Fiscal Cliff means budgetary abyss

The fiscal cliff is a combination of tax increases and cuts that entered into force on 1 January 2013 and can cause a major recession. In the United States, the end of 2012 was marked by the budgetary abyss in which billions of belastingverhogingenn and cuts were initiated per 2013 if there were no agreement. The first proposals had already been exchanged in December, but at Christmas there was still not much to be achieved between the various parties. It is mainly about ending tax incentives: income tax goes up and social contributions too. The cutbacks mainly affect defence, social security and health care. When the government spends less money, it also decreases purchasing power and thus less is bought (which again reduces tax revenues).

What is the Fiscal Cliff [YouTube] eiaYmhQsBHc [/youtube]

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