U.S. Senator John Barrasso recently appeared on Fox News to talk about the fiscal cliff. The Senator commented that he thinks that President Obama wants to go over the cliff for political reasons. He added that rather than campaigning, the President should be working on a solution by working with people on both sides of the isle.
Changes that will go into effect at the end of the year if a compromise isn't reach include the end of last year’s temporary payroll tax cuts, which would result in a 2% tax increase for workers, the end of certain tax breaks for businesses, shifts in the alternative minimum tax that would take a larger bite, the end of the tax cuts from 2001-2003, and the beginning of taxes related to President Obama’s health care law. At the same time, the spending cuts agreed upon as part of the debt ceiling deal of 2011 will begin to go into effect.