America was pushed to the brink on New Years Eve after nearly two months of fiscal cliff talks came down to the wire. The “fiscal cliff,” as it has been termed, was a series of tax hikes and spending cuts that were scheduled to take place on January 1st.
The cliff was created in August of 2011 after Congress failed to come to an agreement on budget cuts. The bipartisan compromise was to promptly push it back to a later date, or the beginning the 2013 fiscal year. In all, the idea was to cut approximately $503 billion from the U.S. budget with significant cuts to programs like Medicare and national defense programs.
Bipartisan effort finally pulled through late New Years to pull out a short term fix to avoid the upcoming cliff, but Congress is not out of the woods yet. In the upcoming three months votes will have to be taken concerning the debt ceiling, a new budget resolution and whether or not to delay another series of budget cuts in March.