Fiscal Cliff, Taxmageddon, Sequestration - What Does It All Mean?

Now that the election is over, the President, the U.S. Congress, the media, and the financial markets have shifted their attention to the impending economic calamity that Congress created and that Congress must fix otherwise the country will tumble off the "fiscal cliff."

"Fiscal cliff" is the new buzzword being used to describe the situation that the U.S. will face at the end of this year when several tax policies are set to expire, new taxes from the Affordable Care Act will kick in, and provisions of the Budget Control Act of 2011 will go into effect.  If no action is taken by Congress and the President during the lame duck session, $500 billion of spending cuts and tax increases will automatically occur.