Fiscal Cliff

The fiscal cliff is a plan that implements $500 billion tax increases and acrosstheboard  spending cuts by Jan 1. 2013 if Democrats and Republicans can't reach an alternative deficit-reduction deal. If the fiscal cliff does happen, then taxes would rise for every taxpayer and businesses. The government would cut finance towards many federal programs such as military and education. This is a major issue because the sudden deficit-reduction is too soon for a weak and poor economy that is still trying to gradually climb it's way back up.
Many people are worried because this new turn of plan can affect the economy dramatically such as cuts for social programs, defense, health care and other industries which depend on the federal spending and if cuts are made, then there would be major job losses which then in turn would increase the unemployment rate.
With such high debts resting on our country, the government is doing everything it can to make for the increase in debt limit which results in tremendous increase in tax and spending cuts for every citizens. As of right now, the fiscal cliff is only a temporary plan but if the Democrats and Republicans can't reach a general consensus then the fiscal cliff is really going to be in effect and the economy might take a very hard downturn.