fiscal cliff

American  

noun

1. a governmental or personal financial crisis that is brought on by economic factors or policies.

   High housing costs have pushed many families over the fiscal cliff.

   Some municipalities are on the edge of a fiscal cliff after years of overspending.

2. (specifically) a financial crisis that threatens to disrupt the economy or personal finances and is brought on by steep governmental spending cuts and tax increases.

   Congressional legislation to avert the fiscal cliff.

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fiscal cliff British  

noun

1. informal  a situation in which sudden changes in government expenditure and taxation have a profound effect on a country's economy

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Etymology

Origin of fiscal cliff

First recorded in 1950–55

Example Sentences

The current blueprint for reform comes from the Chicago Metropolitan Agency for Planning, which was directed by the state to produce a 134-page study in 2023 that anticipated the arrival of the fiscal cliff.

From Slate

The president’s order also creates an artificial fiscal cliff.

From Salon

The Dodgers’ thrilling playoff run comes as Los Angeles faces a fiscal cliff.

From Los Angeles Times

Mayor Cavalier Johnson of Milwaukee said the infusion of cash helped his city deal with “a fiscal cliff” and leverage an increase in the sales tax to support police and fire departments.

From New York Times

Not long ago, the agency’s director, Jeffrey Tumlin, was worried that it was barreling toward a “fiscal cliff,” when it would run out of money and have to make big cuts in service.

From New York Times