"How would you explain the Fiscal Cliff to one of your peers here at school? Be sure to include information you gathered from the extra sources you read as you explain this to your curious peer."
Basically, the Fiscal Cliff is our economy going into the toilet in 2013. It's $500 billion in tax increases and spending cuts for the year of 2013 alone. What this means is that taxes will be raised for pretty much every taxpayer and business. This will probably end up killing off a lot of small business and will most definitely lead our country into a recession.
The Bush Tax Cuts will be expiring on January 1, 2013. Obama wants to end tax cuts on income over $250,000 which is all fine and dandy for some folks, but it could potentially hurt small business and job growth. Not only could it hurt businesses, but it is really not fair to those who have worked hard for their money; they should not be punished for their hard work.
Finally, something that sticks out to me about the Fiscal Cliff is that the payroll tax holiday will be ending. This was not something I had known about before, but basically we have been getting 2% off our payroll taxes for the past two years. When this ends, it means we will have less money - and for someone working minimum wage and trying to save up money for a car and college and life in general, I'm sure it will be noticeable. It will also put a damper on my parents' efforts to save money to send me and my siblings to college. 2% can really add up, so it stinks that the government will be taking that away from us.
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