I'm not sure I understand what the big deal is about a deal before Jan 1

[cali]

If they strike a deal after Jan 1 but before April 15th, why won't that forestall most of the tax increases?

[Mass]

1. long term unemployment insurance is part of the deal. Probably the only reason to go for a deal if

the deal was acceptable.

These people cannot wait for 3 months for a deal to be found. Frankly, it is one of the reasons I hate Dems these days. They are all excited how enterprises do not know what will happen to them. Wake up! Some people do not know if they will have a roof on their heads tomorrow (or worse).

[BeyondGeography]

2. Businesses will make cuts, unemployed won't receive benefits

Consumer spending will dive in the 1Q, which is always soft to begin with.

It's a problem.

[unblock]

3. april 15, 2014, in fact!

april 15, 2013 is the deadline for filing for 2012 taxes, which are NOT affected by the "fiscal cliff".

the tax changes are for income generate in 2013, the taxes for which aren't ultimately due until april 15, 2014.

however, there are withholding/estimated tax payments due during 2013, and this will start to squeeze everyone's paycheck as soon as the irs say to start using a higher withholding table.

but you're right, they can make any change retroactive to january 1, 2013, and it will mostly come out in the wash.

january 1 is NOT a "deadline" for cutting a deal. it's merely when the new laws take effect, and of course those laws can be changed at any point.

[Fresh_Start]

4. I think the debt ceiling is estimated to be reached today....nt

nt

[dipsydoodle]

5. You were given a buzz expression,

the fiscal cliff, to use as a handle for an upcoming event. Anyone in fact using it is to a certain extent gullible. You should take care of asking pertinent questions on its validity for fear of making others feel daft.



and Happy New Year.