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Thursday, October 4, 2012

‘Fiscal cliff’ to hit 90% of US families - FT.com

‘Fiscal cliff’ to hit 90% of US families - FT.com
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  1. RAYLOKEOctober 4, 2012 at 8:31 AM


    High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. http://www.ft.com/cms/s/0/8625e8aa-0bea-11e2-8032-00144feabdc0.html#ixzz28LQJjV7i


    if Congress fails to take any action by the end of December to forestall the fiscal cliff – $600bn of spending cuts and tax rises due on January 1 – the average federal tax rate for US households would increase 5 percentage points to 24.3 per cent.

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    The impact of higher taxes for almost every American – along with about $100bn in automatic spending cuts due to hit the US economy in January – could tip the US into a new recession at the beginning of 2013.

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