Let’s look at this in depth;
United States fiscal cliff
http://en.wikipedia.org/wiki/United_States_fiscal_cliff
The fiscal cliff would increase tax rates and decrease government spending through sequestration, and lead to an operating deficit (the amount by which government spending exceeds its revenue) which was projected to be reduced by roughly half in 2013.
The Congressional Budget Office (CBO) had estimated that the fiscal cliff would have likely led to a mild recession with higher unemployment in 2013, followed by strengthening in the labor market with increased economic growth.
So increasing taxes and decreasing spending leads to a deficit?
The sad part: Democrats got their tax increases, taking more out of the private sector, thus decreasing the size of the private sector.