Examples of fiscal policy include changing tax rates and public spending to curb inflation at a macroeconomic level. Other examples include extending tax cuts to counteract a cut in government spending to avoid causing an economic recession.
Fiscal policy was shown after the U.S. Congress passed the American Taxpayer Relief Act of 2012. The act extended many pre-existing tax breaks given to the population, as well as delaying congressional spending cuts from automatically starting until March 2013. The act made tax cuts that had been set by George W. Bush into permanent tax rates, while at the same time raising taxes on individuals and families earning over a certain threshold.
