Obama Team Warns Of ‘Fiscal Cliff’ Impact On Economy

Source: David Jackson / USA Today

President Obama’s economic team is combining Cyber Monday and the Christmas shopping season with a warning about the perils of the so-called fiscal cliff.

A report released Monday details what the White House calls “the impact to retailers and consumer spending if Congress fails to act to avoid taxes going up on 98 percent of Americans at the end of the year.”

White House officials and congressional Republicans and Democrats are negotiating a new budget deal to avoid what they call the fiscal cliff, a series of automatic tax hikes and spending cuts that take effect in the absence of an agreement; that includes the expiration of the George W. Bush tax cuts.

Obama wants to extend the Bush tax cuts for everyone except Americans who make more than $250,000 a year; the Republicans want to extend all the Bush tax cuts.

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