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If the US goes over the "fiscal cliff" on Dec. 31, our tax rate returns to what it was during the Clinton era. Our federal budget is automatically reduced by substantial amounts across the board. Economists predict that this may have a bad effect on the US economy. Actual effects will be slight for a few months, and Congress seems very likely to act quickly, if indeed the "cliff" is actually allowed to happen. Psychological effects, such at those on the Stock Market and on the thoughts of people who make financial decisions is hard to predict.

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Q: What happens if the US goes over the 'fiscal cliff'?
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