Suddenly, the news is less loud about the 2012 toast of the political pivot: the fiscal cliff. Predictions were ripe late last year that the financial fallout would happen at the end of January. It’s nearly end of February. So have we just experienced a Mayan prediction slip again? Or, we just didn’t make time to freak out because we’re too busy with the more important things in life, like taking the kid to her ballet class. Anyhow, to keep you on top of the cliff, here’s a rundown on what has been happening around this ballyhoo on your personal pocket.
Government to start sequestering spending
Expect the spending cuts to begin in the last week of February or first week of March barring a congressional turnaround. The cuts are not drastic; rather a year-long plan to save the country about $85 billion. Experts believe the cuts’ impact will cost this year’s economic growth by only half a point. Still, the White House wants an alternative plan to cushion the cuts.
Call to more military cuts
A public outcry starts to zero in on defense cuts, rather on across-the-board government spending cuts. The Hill survey shows that more than half of voters would like to see the military bearing the brunt of spending cuts. The report also points out party lines being crossed over to suggest how the cuts are better served this year.
Disaster-hit states to bear brunt of cuts
The northeastern states—New York, New Jersey and Virginia—will be hard hit as the government starts to sequester spending by end of February. The White House is pressuring Congress to create an alternative plan to avert across-the-board cuts, which will hit social programs hard, a vital part in the recovery of states damaged by Hurricane Sandy.
Fiscal cliff impact not significant on your taxes—Ohio accountants
A number of certified accountants in Ohio don’t see a major crisis for taxpayers this year despite of tax adjustments. Some fine print on the American Taxpayer Relief Act of 2012 is also discussed in preparation for this year’s income tax returns.
Fiscal cliff moved from January to April Fool’s Day?
US Rep. Lloyd Doggett (Dem) joins his party to warn the public of creating more problems with the scheduled spending cuts to begin in March. The cuts will be felt by April, he said, a three-month delay from the original prediction of a January crisis.
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