fiscal cliff

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.

fiscal cliff

noun

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

Word History and Origins

Origin of fiscal cliff¹

First recorded in 1950–55

Example Sentences

While the bill will avoid a pending calamity, the Senate will have to address this fiscal cliff again come December — a month when lawmakers also face several other important deadlines, including funding the government.

From Axios

He rightly references the looming fiscal cliffs that Social Security and Medicare face as their trust funds approach insolvency.

From Washington Post

The pandemic and corresponding economic crisis have left many Americans unemployed and many state and local governments concerned about a potential fiscal cliff.

From Time

Without it, American families are facing a historic fiscal cliff.

From Fortune

Oh, and as a result of the fiscal cliff negotiations in late 2012, tax rates on some people actually rose.

From The Daily Beast

They did once in the Obama era on a big thing—the fiscal cliff deal.

From The Daily Beast

What followed, instead, was a year of inaction, culminating in a government shutdown and a stand-off over the fiscal cliff.

From The Daily Beast

Welcome to Groundhog Day, with the hefty rodents on Capitol Hill scurrying toward another fiscal cliff.

From The Daily Beast

With the fiscal cliff and a potential shutdown looming late last year, a clip of the “Shutdown” episode circulated online.

From The Daily Beast