Q. What is the biggest issue with the fiscal cliff?A. The fiscal cliff is not only about the tax code. It's just the uncertainty. I know that's a catchall term that everyone uses, but it's for real this time. Everyone always says businesses hate to deal with uncertainty, and it kind of has a hollow ring to it because just the nature of running a business, you're always dealing with uncertainty. But at times like this, when politicians have manufactured a crisis, this is serious uncertainty, because no one knows how it's going to change. If we do go over the cliff, we're sort of going to get whipsawed because the Internal Revenue Service is preparing for the government going over the cliff, putting in place all the new tax forms, and then, six weeks later, when they reach a deal, we're going back to the way things were. That uncertainty and that expectation of being whipsawed back or forth is really a serious issue, whether or not you're worried about higher rates. It's just that hassle of dealing with all this.
Kauffman Smallbiz Expert On Taxes, Fiscal Cliff
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