While congress avoids fiscal cliff, 'dairy cliff' looms

By Shawn Ley, Local 4 Reporter, @ShawnLeyLive, sley@wdiv.com
Published On: Dec 28 2012 04:40:08 AM EST
Updated On: Dec 28 2012 06:20:23 AM EST
glass_milk
DETROIT -

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.

Comments

The views expressed below are not those of Click On Detroit, WDIV, or its affiliated companies. By clicking on "Post," you acknowledge that you have read the Terms of Service and your comment is in compliance with such terms. Readers, please help keep this discussion respectful and on topic by flagging comments that are offensive or inappropriate (hover over the commenter's name and you'll see the flag option appear on right side of that line). And remember, respect goes both ways: Tolerance of others' opinions is important in a free discourse. If you're easily offended by strong opinions, you might skip reading comments entirely.

blog comments powered by Disqus