US fiscal wall

Topic

The US fiscal wall (more commonly known as the US fiscal cliff) refers to the combined macroeconomic effect of several previously enacted tax increases and spending cuts that were scheduled to take effect simultaneously in January 2013. This situation was projected to sharply reduce the federal budget deficit but threatened to drive the United States economy back into a recession. The crisis was largely averted through the passage of the American Taxpayer Relief Act of 2012, which addressed the expiring tax cuts and delayed spending reductions.