• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

The Ultimate Fiscal Cliff Cheat Sheet Infographic

Tyler Durden's picture




 

The Fiscal Cliff is the name given for the 2013 increase of Federal Government taxes and budget cuts. The Bush-era tax cuts expire and the 2013 "Budget Control Act" kicks in, among other budget cuts & new taxes. The Fiscal Cliff is set to reduce the 2013 US Government budget deficit by roughly half; will remove $607 Billion from economy (GDP), resulting in 4% drop, pushing it back into recession; it can NOT be avoided. It must happen to fix the budget deficit; any delay must be paid for later; it will NOT reduce the US debt, only slow down the growth. The Fiscal Cliff's (new taxes and budget cuts) size and impact are visualized below in physical $100 bills.

 

 

New Taxes...

Beginning 2013, Americans are to pay more in taxes.

Bush era tax cuts, FICA 2% payroll tax cuts & other tax provisions will expire, Obamacare taxes will show up - this amounts for $400 Billion in new taxes.

Each truck holds $2 Billion, each line is 1.36 miles (7217 feet), for a total truck line length of 2.73 miles, worth $400 Billion.

This is how it could look if taxes were paid physically, instead of electronically.

$222.7 Billion Bonus: Corporate Tax Subsidies

While the taxes are increasing significantly on American citizens, the largest corporations have enjoyed corporate tax loop-holes.

280 of America's largest companies got $222.7 Billion in tax-breaks between 2008-10, while all of them remained profitable.

67 of the 207 companies' paid effective three-year tax rate of less than 10 percent-- far from the 35% corporate tax code.

 

Budget Cuts...

The Fiscal Cliff will cut $207 Billion out of Government budget: $65 Billion in cuts will come from "Automatic Sequestration", a fancy name for automatic spending cuts that are the consequence of the "Super Committee" failing to come up with a plan to cut $1.5 Trillion over 10 years, which they had to do in order to avoid the "Automatic Sequestration".

The sequestrations cuts will be divided equally between Defense and Non-Defense spending.

$26 Billion in cuts will come from the Unemployment Benefit Extension expiring.

$11 Billion in cuts will come from reduction in Medicare Payment Rates.

$105 Billion will come from other spending reductions.

 

Source: Demonocracy

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Fri, 11/30/2012 - 19:43 | 3025435 overhere2000
overhere2000's picture

A tax cut and two wars on a credit card ends in this.

Fri, 11/30/2012 - 20:02 | 3025486 vast-dom
vast-dom's picture

all of the above confirming that the biggest criminal cartel is the gov.

Fri, 11/30/2012 - 20:24 | 3025512 NidStyles
NidStyles's picture

Really, you honestly think this has only been going on for the past 12 years? This is why foreigners think Americans are morons. You have no idea what has been going on in your own government for over a Century.

Fri, 11/30/2012 - 21:03 | 3025594 Everybodys All ...
Everybodys All American's picture

Actually a good number of the morons are foreigners.

Sat, 12/01/2012 - 01:34 | 3025977 JPM Hater001
JPM Hater001's picture

That's hilarious, he said century.

Try a few millennium.

Sat, 12/01/2012 - 10:03 | 3026233 midtowng
midtowng's picture

I would like to point out that the federal budget was nearly balanced 12 years ago.

So yes, the worst of this has been going on for just 12 years. (note: both parties are complicit)

Sat, 12/01/2012 - 10:34 | 3026279 Ol Man
Ol Man's picture

The temporary balance still does not cover commitmants already made that will ultimately cause default. 

The path began with the separation of currency from value.  That has been going on for a very long time.

Cheers!

8>)

Sat, 12/01/2012 - 11:36 | 3026339 Sauk Leader
Sauk Leader's picture

So your saying we should go back to Clinton era spending levels right?

Sun, 12/02/2012 - 00:20 | 3027474 All Risk No Reward
All Risk No Reward's picture

I'm saying that the WHOLE system is a fraud and talking about "spending" within a fraud is meaningless.

Not only do I say it, I post 100% positive proof beyond any and all doubt...

Debt Money Tyranny

http://www.keepandshare.com/doc/4768883/debtmoneytyranny-6-1-pdf-60k?tr=77

The money the banks loan us is UNPAYABLE - THE BANKRUPTCY OF AMERICA IS NOT JUST INEVITABLE, IT HAS BEEN ENGINEERED, EXACTLY AS HENRY FORD PREDICTED:

“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. The one aim of these financiers is world control by the creation of inextinguishable debt.” Henry Ford

If the banksters lend a nation just $20 @ 5% interest, IT IS IMPOSSIBLE TO PAY $21 DUE IN A YEAR UNLESS...

1. You become a servant to the banksters and earn the $1 they accrue in interest, in a timely manner, and then return the $1 back to the banksters.

2. You get asset stripped by the banksters as you give them $1's worth of your stuff, in a timely manner, and then return the $1 back to the banksters.

If you don't, whatever you used as collateral (in reality, the nation's natural resources, watrer companies, power companies, roads and the labor of the people) is foreclosed on and handed over to the banksters.

The banksters can choose to not buy the nation's labor or stuff and bankrupt you - THEY CONTROL THE NATION.  THE NATION IS SUBSERVIENT TO THE BANKSTERS.

Until you understand this dynamic, you understand nothing of substance.

Even worse, a "bailout" is equivalent to the banksters giving the nation $20 in debt and pocketing the cash themselves.

It is all a con game.

As an interesting aside, Clinton had NOTHING to do with lowering the deficit to almost even.  The banksters criminally targeted an exponential "monetary and credit aggregates" curve relative to GDP (read Section 2A of the Federal Reserve Act to understand why this is criminal - "exponential to" is not equivalent to "commensurate with" - note the "dual mandate" is an Orwellian style LIE.  Also note the lack of feudal lord penalty for breaking the law, serf boys and girls).

In accordance with our bankster over lords' central debt criminal exponential debt growth targeting, the banksters were able to reduce federal spending because of the private leverage explosion that generated the 2000 stock market bubble.

Reference the first chart at this link to see how well the banksters were able to use government debt debt spending to manage changes in private debt issuance in order to achieve their exponential debt growth target:

http://market-ticker.org/akcs-www?post=207083

You can't even see a blip in the year 2000 - nice and smooth...  and not due to random chance.  That was planned, boys and girls (respect to all two of you ;-)

To all those who think Bernanke is stupid or inept...  well, he's the front for the international banking cartel that criminally broke Section 2A of the Federal Reserve Act and got away with it, the Fed has precisely managed the exponentially death toll of your economy for about 3 decades and they are bankrupting your country, state, county, city and community as they systematically asset strip you via their fraudulent debt based monetary system.

And, if you still work, you probably work for one of their corporate fronts adding to their bottom line as they "punk" you, your family and your community.

They Trojan Horse operators who control your government aren't stupid, they just play it that way in front of the stupid citizenry that doesn't understand they are being ruined BY DESIGN.

They don't think we, as a society, are stupid, either.  The prove it - right in our faces.

After all, they put Andrew "I killed the bank" Jackson on their Torjan Horse, debt money $20 Federal Reserve, societal asset stripping debt NOTE - and not one in 1,000 understands the joke is on them.

Do you want another example?  The Federal Reserve in Washington, D.C. faces the Lincoln Memorial.

"I have the Confederacy before me and the bankers behind and, for my country, I fear the bankers more."
~Abraham Lincoln (said before Lincoln was assassinated and Debt Money Tyranny was reinstated)

To underestimate the level of malice involved here, frankly, isn't even possible.  They hate you and revel in the plan to destroy and starve you.

If you have Netflix, watch the followin gtwo documentaries:

1. A Film Unfinished

2. Empire in Africa

Then answer this question to your satisfaction - "What is the difference between Hitler's ghetto set up and the way the bankers and their front corporations, including their United Nations front, treat the African nations other than the fact that no walls are required and the number of people killed by the bankers is much more every two years than Hitler killed throughout all of WWII?"

The Hitler / Bankster General Outline:

1. Keep people in a location

2. Control who controls the location

3. Deny resources (energy, food, clean water, true education, etc)

4. Revel in the starving and malnourished death of men, women and children.

Read State Memorandum 200 for offical details...

https://www.youtube.com/watch?v=_d2bCirm6NA&playnext=1&list=PL95362D45AF...

http://planet.infowars.com/activism/wrc-confronts-henry-kissinger-explained

It would seems Hitler's misjudgment was simply one of not thinking big enough and not controlling the issuance of currency and credit throughout multiple nation states.

The aren't dumb - that's something people WANT to believe so they can sleep better at night.  That's what the system sells to you and that is what Sun Tzu told an aggressor to portray to their victims in "Art of War."

"Pretend to be weak. that he may grow arrogant."
~Sun Tzu, Art of War

If you think Bernanke and, more importantly, the people who tell that front man punk what to say and do, are stupid, you've been *punked* and played.

If so, elevate your game - you can't defeat a wicked and vile enemy unless you understand they exist.

Sun, 12/02/2012 - 00:21 | 3027485 tip e. canoe
tip e. canoe's picture

"After all, they put Andrew "I killed the bank" Jackson on their Torjan Horse, debt money $20 Federal Reserve, societal asset stripping debt NOTE - and not one in 1,000 understands the joke is on them."

wondering if colouring the new notes just like monopoly money might be the straw that broke the camel's back...and whether it is precisely intended to be the straw.

Fri, 11/30/2012 - 23:27 | 3025839 monogratis
monogratis's picture

Fiat money, fractional reserve banking and central bank debt financing ends in this.

 

Of course, all of us are just living in the past.  Because "old" economics died with the gold standard (according to genius "economists" that write for crappy newspapers that morons still read because they think it makes them smarter).

Sat, 12/01/2012 - 00:25 | 3025901 WeeWilly
WeeWilly's picture

What am missing overhere? Oh yeah, the last 4 years! Let's just pretend Bush was in charge then as well. Now your comment makes perfect sense... 

Sat, 12/01/2012 - 10:00 | 3026229 midtowng
midtowng's picture

If the fiscal cliff means we can't afford more useless, wasteful wars, then it is a good thing.

Sat, 12/01/2012 - 12:44 | 3026427 TWSceptic
TWSceptic's picture

Down voted for implying that tax cuts are a bad thing.

Fri, 11/30/2012 - 19:45 | 3025443 Bay of Pigs
Bay of Pigs's picture

A picture is worth a thousand words...

Fri, 11/30/2012 - 19:45 | 3025444 Victorio
Victorio's picture

Fiscal Cliff? More like a curb. Just the tip of the iceburg bitchez.

Sat, 12/01/2012 - 01:47 | 3025992 palmereldritch
palmereldritch's picture

Fecal Cliff comes to mind...if only it was made of ice...

Fri, 11/30/2012 - 19:51 | 3025454 q99x2
q99x2's picture

There is no budget so there is no deficit. And, I want my QE. Now. M'Fer.

Fri, 11/30/2012 - 21:57 | 3025694 max2205
max2205's picture

I got one of those Obamerrama waivers so fuck the rest of you

Fri, 11/30/2012 - 19:51 | 3025456 reader2010
reader2010's picture

Beyond my little brain's capabilitiy to fully understand. Can you put it in a chart like how many cases of beer and how many hookers it can buy?

Fri, 11/30/2012 - 20:02 | 3025479 nmewn
nmewn's picture

You will have to steal the beer but the hookers will accept EBT in 2013.

Fri, 11/30/2012 - 21:53 | 3025687 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

It would be much easier in blow and Ferraris. We could fit it into a large car garage. The hedge fund dudes would also understand.

Fri, 11/30/2012 - 23:32 | 3025845 monogratis
monogratis's picture

It would be much easier to blow up Ferraris.  We could fit the dead bankers into a large car garage.  The hedge fund dudes would also be 6ft underground.

 

I like it better this way...

Fri, 11/30/2012 - 19:56 | 3025469 TheSilverJournal
TheSilverJournal's picture

" will remove $607 Billion from economy (GDP), resulting in 4% drop"

Only tax increases remove resources from the economy. Spending cuts allow more money to stay in the economy. The only way that government gets resources to redistribute is by first taking them from the economy.

Fri, 11/30/2012 - 20:39 | 3025538 BTFDemocracy
BTFDemocracy's picture

As long as the budget cuts don't exceed the budget deficit.. its still taking out of economy, as taxes don't decrease.

Fri, 11/30/2012 - 20:52 | 3025568 TheSilverJournal
TheSilverJournal's picture

ANYTHING the government does, it gets those resources to do it by taking resources out of the economy.

ANY time the government spends money and doen't pay for that spending through straightforward taxes, resources are still being taken out of the economy to pay for that spending, either through the inflation tax (the most sly and evil type of tax), or through borrowing which therefore commits the economy to future taxes.

Income taxes are only a part of the picture and just because income taxes don't decrease doesn't mean that less money isn't being taken out of the economy. The true measure is spending. Stop spending and put money back in the economy. Move towards a more honest tax and aware from sly taxation tactics of inflation and borrowing and put money back into the economy.

Sat, 12/01/2012 - 09:34 | 3026208 nodoctor
nodoctor's picture

Yes except it isn't exactly zero sum in the short term.  The government borrows about 25% of its (non existent) budget every year.  Though in the long term the free money isn't free per what you say above, in the short term that $1.2T only costs $100B (winging it here, want to say that debt service is around this amount though probably less) in interest.  So then even accounting for the service the government distributes $1.1T from external revenues.  That is approx 7% of GDP; and is the monetary magic dust that keeps the economy high.  Cuts in spending come out of this number first.  Really the "problem" of the fiasco cliff is that if it goes into effect the government will no longer "need" to borrow as much money, which was exactly the money for nothing that had been helping to prop up this dead economy for so long. 

Sat, 12/01/2012 - 16:49 | 3026745 TheSilverJournal
TheSilverJournal's picture

Right, it's a worldwide monetary fiat ponzi scheme. To keep the ponzi going, the rate of taking on debt and money printing must continually increase, otherwise fiat collapses. Keep the ponzi going as long as possible, and the result is hyperinflation.

In the short term, collapse of the ponzi will be the largest disaster in history. But drive it to hyperinflation and the recovery of society will be a much greater struggle.

Fri, 11/30/2012 - 21:22 | 3025628 JLee2027
JLee2027's picture

will remove $607 Billion from economy (GDP), resulting in 4% drop"

This is old school thinking. Actually, the 607 billion was either taken out of the economy or conjured into existence. In either case, it harms the economy in the long run.

Fri, 11/30/2012 - 23:36 | 3025856 monogratis
monogratis's picture

Definitely old school thinking.  What these morons don't understand is that by removing money from circulation that would otherwise go into mal-investment, you are actually increasing the value of everyone else's money by giving them an opportunity to invest their money into productive ventures and reducing the price inflation caused by speculation.

All of the models of the "economists" don't take into account the opportunity cost of NOT devaluing the dollar.

Sat, 12/01/2012 - 00:41 | 3025925 BTFDemocracy
BTFDemocracy's picture

On the site it now says:
"The Fiscal Cliff will remove $607 Billion from economy (GDP), resulting in 4% drop, pushing it back into recession."

I was struggling with that line when typing it up.

If you can sum it up better in a plain english straight forward 1-liner thats no longer than original line, I'll change it on the site. Suggestions welcome.

Sat, 12/01/2012 - 01:57 | 3026001 monogratis
monogratis's picture

Part of the reason you can't model economics in a centralized fiat debt based economy is precisely because GDP is measured in an inconsistent unit.  How can you accurately measure anything when your measuring stick is constantly changing?

 

How about: "The Fiscal Cliff will re-allocate $607 billion from GDP into price deflation, resulting in a 4% drop in GDP but an immeasurable positive impact in price deflation (or currency strengthening), pushing to economy closer to equilibrium (homeostasis?)." 

If the neo-Keynesian economists destroy the value of the asset by which all other assets are valued, how does that actually increase the value of anything.  Is that not a zero-sum game?  

Fri, 11/30/2012 - 19:56 | 3025470 Stoploss
Stoploss's picture

In 31 days it's really going to suck to be young and poor.

Hey, it's what you vote for..

Fri, 11/30/2012 - 20:23 | 3025511 nmewn
nmewn's picture

Young, fucking stupid and poor.

Reporter: “Do you support President Obama having the power to unilaterally increase the debt limit as Secretary Geithner proposed?”

Pelosi: “Yes.”

Forward!!!

Fri, 11/30/2012 - 20:27 | 3025518 NidStyles
NidStyles's picture

The people are so ignorant and ignorant of their ignorance that they will accept dictatorship willingly.

Fri, 11/30/2012 - 20:36 | 3025531 nmewn
nmewn's picture

I've never seen anything like it NS...this goes right back to government skools...they now, really do believe in unicorns, until government comes along and hacks off its horn for its taxes.

Then its a fucking tragedy to them with the end result being, the unicorn will have to be subsidized by government...its absolutely surreal.

Fri, 11/30/2012 - 20:35 | 3025532 Oldballplayer
Oldballplayer's picture

Well, their parents always just paid for stuff with that little card. Why can't the government?

Fri, 11/30/2012 - 20:56 | 3025579 nmewn
nmewn's picture

It is an interesting proposition, why are we forced to pay taxes, when they have that little card?

If this is all about "fairness" just print ;-)

Sat, 12/01/2012 - 09:50 | 3026214 jekyll island
jekyll island's picture

I think it's the other way around. The gubmint has been doing this for 100 years, that behavior was learned from the politicians.

Sat, 12/01/2012 - 10:40 | 3026287 DanDaley
DanDaley's picture

Not just Forward!!! -but Forward, Soviet!!!

Fri, 11/30/2012 - 19:57 | 3025473 HelluvaEngineer
HelluvaEngineer's picture

Portion I authorized: $0.

Fri, 11/30/2012 - 20:27 | 3025520 FEDbuster
FEDbuster's picture

Starve the beast.

Fri, 11/30/2012 - 20:31 | 3025527 woggie
woggie's picture

the beast is on the gobble
and all that matters is we're all headed for it's belly
http://youtu.be/ntmthFyaYzY

Fri, 11/30/2012 - 19:56 | 3025474 knukles
knukles's picture

Thinking about Europe, the EU and Euro as a modern template
the Fed should begin to accept a new class of super-collateral comprised exclusively of bulk shrink wrapped French female armpit and leg hair shavings, with particular emphasis on stubble.  The logic behind this is inescapably clear.  Those items are so scarce, they hold great intrinsic value, cannot be counterfeited and with French sanitary habits as they are, will likely remain so. 
Conversely, should those disgusting habits change, it would prove beneficial for society as a whole.

Fri, 11/30/2012 - 20:05 | 3025476 Yen Cross
Yen Cross's picture

 Jeesus / That last I.R.S. infographic was illuminating!   I'm now officially short cranes that offload fiat...

KHL Group - Cranes
Fri, 11/30/2012 - 19:59 | 3025483 Bansters-in-my-...
Bansters-in-my- feces's picture

...And the Rothschilds keep on smileing..

                                          :0)

Fri, 11/30/2012 - 20:08 | 3025492 Yen Cross
Yen Cross's picture

 Lot's of lumber on those pallets, Global warming Libtards!

Fri, 11/30/2012 - 20:11 | 3025495 johngaltfla
johngaltfla's picture

JESUS H. CHRIST PEOPLE. THESE ARE NOT CUTS!!!! THEY ARE REDUCTIONS IN THE RATE OF SPENDING INCREASE!!!!

 

Man, did I need to vent that one more time.

 

FWIW, the government will still increase spending by over 4% y-o-y on the baseline alone not including the bullshit that the Politicrooks add to the mess!!!!! This isn't a "cliff" it's an atempt to rape the middle class and force them to say "thank you may I have another."

 

Both political parties are steaming piles of crap and if you wish to survive what is coming, load up on real precious metals, not paper and for God's sakes not the Tungsten crap some dealers are passing off as real bullion. Oh, and lots of food, water, guns, and ammo. When this implodes in March, it is going to get ugly.

 

Or it will just be blamed on Sandy.

Fri, 11/30/2012 - 20:37 | 3025534 Oldwood
Oldwood's picture

Facts don't matter anymore. They are politically incorrect and hate mongering. These numbers are so unreal that it is unimaginable therefore easier to not believe so facts become realtive. We can only hope that they legalize drugs in time so that we won't mind so much living on the street or in a cardboard box as that appears to be addict's preferred lifestyle. Of course the only reason they will legalize them is for tax revenues, so we likely won't be able to afford it anyway. God, we really are sheep.

Fri, 11/30/2012 - 23:23 | 3025827 monogratis
monogratis's picture

John, you are being racist... everyone knows it is racist to prepare for financial armageddeon.

Do NOT follow this link or you will be banned from the site!