The document discusses the fiscal challenges facing policymakers at the end of 2012, known as the "fiscal cliff." It notes that major tax increases and spending cuts are scheduled to take effect simultaneously, which could significantly harm the short-term economy. However, continuing current policies would add substantially to the debt over the long run. The document analyzes the various expiring policies and estimates their costs. It concludes that policymakers should enact a gradual plan to stabilize the debt and strengthen the economy, rather than allowing the abrupt changes or continuing current unsustainable policies. Failing to act could damage confidence and the economy.