There’s been a lot of talk about fiscal cliff President Barack Obama is facing – along with the rest of the nation – almost immediately. But what is this cliff everyone keeps talking about? From The New York Times, here is a description of what it is and how it affects you,
… it’s also the year President George W. Bush signed a massive round of tax cuts. The tax cuts were supposed to expire ten years later, in 2011. President Obama later extended the expiration date to January 1, 2013. After that, your rates will go back up to the rates you paid in 2001. A bunch of other tax changes, like the expiration of a “payroll tax holiday” and the elimination of some tax credits, will also hit on January 1, meaning that no matter how much you pay now, you’ll probably pay more after the new year unless there’s a deal.
So essentially these are not NEW taxes. Read on to learn more!
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