We all know our government debt is out of control and needs to be dealt with responsibly as soon as possible. It just so happens there are two things getting ready to happen over the next 12 months that will have a significant impact on the deficit and the economy as a whole. First, the Bush tax cuts are set to expire next year which will mean some kind of tax hike for most Americans. Second, by January 2013 if congress still has not agreed to some sort of spending cuts then automatic self-imposed cuts will kick in. Politico just did an article about the situation and says that the Congressional Budget Office has just warned that if both the tax hikes and spending cuts happen the likely outcome will be a recession in 2013. They also say that if some sort of compromise is worked out then the economy should grow by more than 2%. These are two issues worth following as the year progresses, below is a link to the story.