Friday, December 21, 2012

US Fiscal cliff _ what is this about ?

Globally it is the latest buzz word .
What is this exactly ?

From 1st Jan 2013 , Automatic spending cut and Tax rate increase will happen . Bush Tax cut will expire on 31st Dec and spending cut will happen  as per the provison of Budget control Act 2011 . This Act was passed to avoid the dispute which came in 2011 relating to US Debt ceilling .

The impact is so huge that US fiscal deficit will come down by 50%

This will lead to huge impact to the US Economy .

Both the leading political Group are engaged in dialogue to avert it before 31st Dec .

All proposals given by Republicans to Obama administration till now has been rejected by Democrats .

The impact of this will be substantial across the Globe . All hope that some resolution will be worked out by the US politicians .

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