Consequently the fiscal cliff could not be allowed to happen and was very very scary while the sequester is exactly the austerity program they were looking for, except for the defense cuts, which won't happen.

I understand the difference now and why it was allowed to happen.

Not just the wealthy. As well as enacted the automatic spending cuts. The "compromise" was to raise them on the uber-wealthy only, and to kick the spending cuts down the road to March 1.

Bernanke coined the term as the collective measures scheduled to kick in at the beginning of the year. All those measure were estimated to be a 4% hit on GDP if I recall correctly.

That included both the reversion to Clinton tax rates (Bush tax cuts were to have expired) plus the sequestration plus the lapse of the 2% payroll tax holiday. In addition there was the increase in the ACA taxes, which did go through plus the lapse of the AMT fix.

So...congress reversed most of the Bush tax cut expiration and adjusted the AMT for 2012. They kicked sequestration til March 1st and extended the debt ceiling deadline. In addition they let the ACA taxes kick in and increased the payroll tax up 2%.

I appreciate all the info. That's explains a lot.

maybe they will use the word cut

Apparently it will involve the debt ceiling. The republicans seem to be out to destroy this country. Is this supposed to be their scorched earth strategy?

Something will need to be done before then or there will be another govt shut down.

getting your throat cut and your head chopped off.

The end result is pretty similar.

Except the GOP benefits more from the sequester which is why they refused to compromise. Sad state of affairs.

At least I hope so.