What Is A Fiscal Cliff Agreement

On December 26, 2012, Geithner announced that the federal government would exceed the current debt ceiling as of December 31, 2012. As a result, a number of steps would be taken to delay this, starting with the suspension of the issuance of government and municipal bonds on December 28 and investments in two state pension plans. These and other measures would normally delay reaching the debt ceiling by about two months, but due to the debate over the fiscal cliff, it could be extended if current laws do not change. [88] A number of laws have led to the tax cliff, including these provisions:[23][24] A.