While congress avoids fiscal cliff, 'dairy cliff' looms
Updated On: Dec 28 2012 06:20:23 AM EST
While congress and the president fiddle, U.S. residents are set to get burned by skyrocketing taxes. It’s all due to what they’re calling the fiscal cliff.
Right now, the focus is on getting a deal done to avoid that cliff in the next three days.
But while the focus is on that, a farm bill is expiring that will tax you again at the grocery store. Call it the dairy cliff.
Milk right now is at an average price of $3.65 a gallon. When this farm subsidy bill expires Monday night, and no new farm bill is passed, the government gets involved by buying milk and dairy products from farmers to keep them in business if the price gets too low.
The problem is this farm bill was written in 1949, so it does not include today’s prices for milk.
Therefore, the government will start buying milk at double the price and passing the cost on to you.