President Obama said that dealing with the Bush tax cuts by making sure that middle-class taxes don’t rise would make major headway in staving off the threat of the fiscal cliff. “Half of the danger to our economy is removed by that single step,” he said.

In reality, the Bush tax cuts make up only about one-quarter of the major fiscal contraction that the nation would face in 2013. The rest comes from the sequester cuts, payroll tax cuts and other parts of the austerity crisis. Here’s the Bank of America’s breakdown:

-- Wonkblog's Suzy Khimm