The so-called “fiscal cliff” is a combination of expiring Bush- and Obama-era tax cuts and major across-the-board spending cuts set to kick in at the end of the year. It includes:
• The expiration of Bush-era tax cuts on income, investments, married couples and families with children and inheritances.
• A $55 billion, 9 percent cut in the defense budget next year and another $55 billion in cuts to domestic programs.
• The expiration of unemployment benefits for the long-term jobless.
• The expiration of Obama’s temporary 2 percentage point cut in payroll taxes.