The Fiscal Cliff refers to the sharp decline in the budget deficit that could have occurred in 2013 due to increased taxes and reduced spending as required by previously enacted laws. Most believed the sharp decrease in the deficit would have likely led to a mild recession in 2013 and increased unemployment.
We all know the Fiscal Cliff was averted by the enactment of The American Taxpayer Relief Act of 2012 (enacted in 2013…) but how did we end up in this position?
Planwise takes a look at the timeline of events that grew the US deficit over the past decade that led us to the Fiscal Cliff.
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