A week ago, the United States averted what they termed, a fiscal cliff. The premise of the fiscal cliff is that expiring tax cuts and decreased government spending would affect the U.S. economy and lead the country into recession.
A compromise deal was reached by both Republicans and Democrats to extend the tax cuts and delay government spending cuts. The American Taxpayer Relief Act of 2012 (H.R. 8) was passed by the United States Congress on January 1, 2013. Some of the tax cuts which were supposed to expire were made permanent while tax rates at upper income levels were increased.
The reduction of the federal budget was delayed without any specifics mentioned. It would be discussed and negotiated in two months time.
The deductions that the fiscal cliff would have brought about would affect the U.S. scientific community as well. U.S. science based funding programs would fall 8.9%. It is estimated that it would have resulted in the loss of 2500 National Institutes of Health (NIH) grants and 1500 National Science Foundation (NSF) grants in 2013 alone.
