For some time I have been mentioning the coming fiscal cliff and the tax increases which will come with it, or cause it, depending on your point of view.
We have sown the wind. The whirlwind is next.
Now, the Tax Policy Center says American tax payers will have to come up with $500 billion dollars, starting next year. Now, figure out how much of that is yours, by the number of tax credits you have gotten for about ten years, taking in all the Obama Administration and the last Bush Administration. Here is the scary thing; $500 billion dollars sucked out of the economy will certainly doom the recovery but it will take several years of that tax level and austere spending to touch the $16 trillion deficit.
There is plenty of responsibility to go around. Or, we can call it blame. What you call it does not matter. This coming apocalypse looks Biblical in proportion.
And, for the life of me, I cannot find a way out of it. See Above, Wind and Whirlwind.
If Congress does not act (see their record) we will all see much higher taxes, which means less money for the economy. If Congress does act (less likely) we will see a burgeoning national debt, which is unthinkable.
This will come regardless of which man gets to the White House. There are some tough days ahead, most importantly for America, but also for all who depend on America. Israel will suffer greatly, as will Britain and the whole EU economy.
The Tax Man cometh.
Opinions expressed here are mine alone.