Credit Suisse Presents 13 Must-See Charts On Taxes, Spending, And The Fiscal Cliff

neal soss credit suisse

Photo: Bloomberg via YouTube

The U.S. fiscal cliff is quickly approaching.  And U.S. legislators are back in Washington D.C. this week to hopefully cobble together a deal.To better understand what’s at stake, Credit Suisse’s U.S. Economics team led by Neal Soss put together a book of charts to help illuminate what’s at stake and what’s being proposed.

They’re really great and clear.

Thanks to Credit Suisse for giving us permission to feature these charts.

Here are the costs (as a share of GDP) of the tax and spending policies that are scheduled to take effect on New Year's Day. This is the fiscal cliff

In Credit Suisse's opinion, items in red are likely to phase in. Items in blue are unlikely to kick in. Items in greay are 'on the table'

President Obama proposes that only the highest income earners see their marginal tax rates rise

'Broadening the base by curtailing the value of deductions and exemptions may extract more dollars of tax revenue from upper bracket taxpayers than raising tax rates.'

Source: Credit Suisse

The lowest income earners would see their marginal tax rates rise at the fastest rate

Republicans would prefer to pare back on tax expenditures. Here are the top 20 in $ billions

'The total estimated revenue losses from all tax expenditures exceed more than $1 trillion annually, close to what the government collects from individual and corporate income taxes combined, and almost as much as it spends on discretionary programs.'

Source: Credit Suisse

Capping the overall amount of itemized deductions is one way of addressing expenditures

The top 0.3% account for 16% of all adjusted gross income

'The average income within the $1 million+ bracket is 59 times the average for all brackets.'

Source: Credit Suisse

However, the 4.7% who make over $200k pay for 53.6% of income tax

Spending and revenue have become seriously unhinged from the pace of economic expansion

Here's where the money comes in

And here's where the money goes out

Because of fiscal cliff uncertainty, 38% of US companies surveyed by Credit Suisse have cancelled or postponed projects

European companies have also been blaming the fiscal cliff

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