The House is set to vote Thursday on a budget bill that is supposed to help the government stay afloat and prevent the worst-case scenario of a shutdown and debt default.
But, as we know, there is an even bigger, much more damaging budget crisis brewing, and it’s not just a fiscal crisis.
As the Wall Street Journal reports, the Senate is set this week to vote on a spending bill that will almost certainly lead to a government shutdown.
And the Senate has a choice.
It can continue with its fiscal shenanigans, or it can stand up for the people and tell Congress that we are serious about getting our economy moving again.
Read more: House votes to override veto of fiscal cliff deal, the Wall St Journal reportsHouse votes unanimously to override Senate veto of budget deal Here are four things to know about the impending budget showdown:1.
What is the fiscal cliff?
The fiscal cliff, as it’s known, is the government spending limit imposed by the president last month.
It’s a tax increase and spending reduction agreement that was agreed to by the Senate and House and is now being debated in the Senate.
The agreement would cut spending by $1.2 trillion over 10 years, in addition to $300 billion in new revenue, the exact amount that is required to pay for all the federal government’s operations.
It’s a deal that, according to the New York Times, would make the federal deficit nearly $16 trillion by 2026.2.
How much does the fiscal deal involve?
Under the fiscal agreement, the federal budget would increase by $2.3 trillion over the next decade.
That would be about $5.8 trillion over that 10-year period.
The federal government would be required to spend more than $4 trillion over those 10 years to keep the country on track.
In addition, the House would pass a bill that would allow the president to raise taxes by $100 billion on households earning over $1 million a year, which would then be passed on to the federal treasury.3.
Is there a provision in the fiscal bill that raises taxes?
Yes, there are two separate provisions in the deal that would raise taxes on the wealthiest Americans.
According to the House Budget Committee, the fiscal compromise would increase the top individual income tax rate to 39.6 percent, which, according the Congressional Budget Office, would increase total federal income taxes by about $2,000 per person.
It would also increase the payroll tax by $200 billion over the same 10-years period.
That, in turn, would mean that the tax burden would increase on the average family of four, with a net cost of about $1,000.4.
How would the tax increases affect me?
In order to meet its fiscal commitments, the president would need to raise revenue by $4.4 trillion, which is roughly $1 trillion more than he would have needed to do in order to close the budget gap.
The bill includes a provision that would cut the corporate tax rate from 35 percent to 21 percent, but it would still reduce the corporate income tax by another $600 billion.
This would result in a tax burden that would exceed $2 trillion.5.
How will the budget deal affect the debt?
As we previously explained, the $4 billion in revenue raised through the fiscal deals would be used to pay down the debt, and the debt is currently projected to exceed $17 trillion.
The Senate is still negotiating a version of the fiscal-cliff deal that includes other revenue increases, but that deal is likely to be vetoed by President Obama.
The House and Senate have an opportunity to override that veto, which seems likely.6.
Why is there such a big budget standoff now?
The budget crisis has been brewing for weeks now, and Republicans have been using the budget standoff to make sweeping policy changes.
For example, the government has been unable to pay its bills, and some Republicans have also called for cutting off federal assistance to states, cities, and cities-owned schools.
The government is currently on a $1-trillion debt service payment that is set in place before the fiscal crisis was created.
If the debt was already paid in full before the crisis, that would have no effect on the budget.
But it has since ballooned.
If that debt were not paid in its entirety, the country could be in a much worse position to handle the effects of the crisis.
How are the senators doing?
A Senate Budget Committee hearing on Wednesday gave us a glimpse of how the budget showdown is going.
The committee held a hearing with a handful of lawmakers who are close to the president, including Senate Majority Leader Mitch McConnell, who is also the chairman of the Senate Budget Subcommittee on Economic Growth and Jobs.
The hearing focused on the potential economic impact of the government shutdown and the fiscal standoff, and McConnell also laid out his plan to raise the debt limit to avert a government default and a