Lots of talk about the fiscal cliff, part of which is tax hikes and part of which is sequestration cuts. Most news outlets concentrate on the tax talk, but we should not forget the sequestration cuts, which would start in calendar year 2013. What is worth pointing out is the fact that these “cuts” are not actually cuts in spending. Instead, they are just cuts based on projected increases. This graph from the Mercatus Center shows why the sequestration make very little difference in the broad scheme of things.