US could fall off a “fiscal cliff”

May 23, 2012 04:52




From BBC News




The combination of rising taxes and deep cuts to domestic and defence spending are already on the minds of lawmakers on Capitol Hill.

If both are allowed to come into full effect the US deficit would be cut by some $607bn, the CBO estimated.

However, the combination of higher taxes on the middle class and the wealthy, as well as spending cuts, would severely impact the size of the US economy, the report added.


