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A connected with expiring tax cuts and across-the-board government spending cuts scheduled turn into effective 12 ,. 31, 2012. The idea behind the fiscal cliff was that in case the federal government allowed 2 events to proceed as planned, they have a poor effect a good already shaky economy, perhaps sending it back into an official recession given it cut household incomes, increased unemployment rates and undermined consumer and investor trust. At the same time, that predicted that going over the fiscal cliff would significantly reduce government employees budget shortage.
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