“Fiscal cliff” is the popular term used to describe the "perfect storm" that the U.S. government will face at the end of 2012, when the terms of the Budget Control Act of 2011 are scheduled to go into effect.
Among the laws set to change at midnight on December 31, 2012, are the end of last year’s temporary payroll tax cuts (resulting in a 2% tax increase for workers), the end of certain tax breaks for businesses, shifts in the alternative minimum tax that would take a larger bite, a rollback of the "Bush tax cuts" from 2001-2003, and the beginning of taxes related to President Obama’s health care law. At the same time, the spending cuts agreed upon as part of the debt ceiling deal of 2011 will begin to go into effect.
To add more to our worries we will be having a fiscal cliff of our own. For the past five years our Township Committee has been borrowing and spending enough money to keep us in debt for years to come. We are currently spending most of our Municipal budget on debt servicing. This means that as the town grows and its needs grow we have the same two choices as we do on the national level. We can raise taxes dramatically and continue all services at the current level, or we can cut services drastically in order to keep our taxes somewhat stable.
Whichever painful path we choose one thing is certain. Our leaders have put us on the path to stagnation at best with the threat of bankruptcy swinging above us like the sword of damocles.
If we needed to give up any services which would you choose?
We want to hear your opinions
Among the laws set to change at midnight on December 31, 2012, are the end of last year’s temporary payroll tax cuts (resulting in a 2% tax increase for workers), the end of certain tax breaks for businesses, shifts in the alternative minimum tax that would take a larger bite, a rollback of the "Bush tax cuts" from 2001-2003, and the beginning of taxes related to President Obama’s health care law. At the same time, the spending cuts agreed upon as part of the debt ceiling deal of 2011 will begin to go into effect.
To add more to our worries we will be having a fiscal cliff of our own. For the past five years our Township Committee has been borrowing and spending enough money to keep us in debt for years to come. We are currently spending most of our Municipal budget on debt servicing. This means that as the town grows and its needs grow we have the same two choices as we do on the national level. We can raise taxes dramatically and continue all services at the current level, or we can cut services drastically in order to keep our taxes somewhat stable.
Whichever painful path we choose one thing is certain. Our leaders have put us on the path to stagnation at best with the threat of bankruptcy swinging above us like the sword of damocles.
If we needed to give up any services which would you choose?
We want to hear your opinions
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