|By Jon Ericson, Waterloo-Cedar Falls Courier, Iowa|
At its most basic, the cliff simply refers to a series of tax increases and mandatory spending cuts set to kick in come January.
After all the talk and print dedicated to the cliff, it seems most Americans have at least a basic understanding. A
Part of the cliff was caused by the Budget Control Act of 2011, where
But other aspects of the cliff are a result of expiring of tax cuts.
Many of those tax cuts date back to
Here's a rundown of some aspects of the fiscal cliff that could lighten wallets if no deal is struck in
The "Bush" tax cuts: A slew of tax cuts passed
Payroll taxes: In 2011 a payroll tax holiday was instituted as a stimulus to get the economy rolling once again. It was renewed in 2012. This feature reduced worker contributions to
The Alternative Minimum Tax: This tax problem seems to get less attention than many of the others. That may be in part because it's complicated. The Alternate Minimum Tax was created under
Tax credits and deductions known as "extenders": This package of targeted tax benefits includes some that benefit individuals and others that apply to business and industry. Among those are aimed at businesses are some that could have a substantial impact on the economy in
Unemployment: Those who lost jobs will see the length of time they can receive unemployment decrease. The maximum length of time a person can stay on unemployment varies from state to state, ranging from a high of 99 weeks to a low of 40 weeks.
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|Source:||McClatchy-Tribune Information Services|