3 New Ways to Look at the Fiscal Cliff

The Mayans were wrong and we’re all still here. Unfortunately, the news media was right about one thing…the Fiscal Cliff. It has passed through both the House and the Senate, but it still isn’t solved. If your store sells climbing gear you might want to put some on – it could be a rough descent down this cliff.

  1. New definition of wealthy
    With the passing of the new tax rates for the “wealthy” we are now able to define more Americans as wealthy. Any family earning $450,000 is now considered wealthy, but even families making $300,000 will feel a hit in their taxes. In some areas of the country $300,000 already doesn’t get a family of four too far. Most of these areas are on the coasts, where many saltwater anglers reside; look for this increase in taxes to affect that arm of the industry as well.
  2. Three more chances to get hit
    Because many in America have made an art form out of passing the buck or delaying the inevitable decision-making that’s needed, we have three more chances for key pieces of the Fiscal Cliff to raise its ugly head this year. The Debt Ceiling still needs to be decided upon, Spending Cuts between defense and non-defense spending, and finally we need a Budget Resolution. Any one of these three is enough to affect our economy – put them together and we have a recipe for a recession.
  3. We all lost
    No matter what anyone tells you, no side won in the overall debate, and in the end we will all be making less and therefore able to spend less at our favorite fishing shops. Americans who earn $30,000 a year will now bring home $50 less a month, those making $133,000 will bring home $189.50 less. That adds up quickly, that $50 less a month is actually $600 a year, $189.50 turns into $2,274 a year. Both of those numbers represent a great fishing vacation, a new boat or at least some new fishing gear.

The Fiscal Cliff is all of our faults, not just our elected officials, but we are to blame for putting them in the position to make these decisions for us. We all need to handle these changes and make the best of them. Anglers still need equipment, and fish still need to be caught. The deciding factor will be where anglers are shopping. What are your plans to combat the Fiscal Cliff in your shop? Please share your ideas with us on our Facebook Page.