Home : News : Politics : Congress :

Video
Photo

There's a lot of talk in Washington about the "fiscal cliff" - but what is it, exactly? (CNN)

CNN Photo

Regular Photo Size

Fiscal Cliff Headlines

Did FAA have to furlough controllers?

The FAA has no choice but to cut $637 million as its share of …

Obama asks for short-term budget plan

President Barack Obama will ask Congress to come up with tens …

Congress sends Obama bill to raise debt ceiling

Bill passed to raise debt ceiling

Congress passed must-do legislation Thursday to permit the …

Gen Y: An ideal second term

As Inauguration Day draws near, it’s clear to see President …

Obama demands to raise debt limit

President Barack Obama demanded on Monday that lawmakers raise …

Debt limit: What bills would be paid?

The government could run out of cash to pay all its bills in …

US tax code longer than Bible

Too intimidated to fill out your tax return without help? Join …

What is the fiscal cliff?

Updated: Monday, 12 Nov 2012, 10:53 AM EST
Published : Monday, 12 Nov 2012, 9:33 AM EST

(CNN) - There's a lot of talk in Washington about the "fiscal cliff," but what is it, exactly?

In real terms, it's the $7 trillion in spending cuts and tax increases scheduled to go into effect the beginning of January.

After President Barack Obama and members of Congress failed to agree on how to reduce the U.S. debt last year, they sent the Jan. 1, 2013 deadline last year.

Financial analysis are concerned that if there is no agreement before the end of the year, the U.S. economy will be further crippled and unemployment will rise.