House Speaker John Boehner’s Plan B was delayed by lack of republican support Thursday the 21st.
Boehner’s plan B proposition is to implement tax hikes only on American households making $1,000,000 or more per year, leaving the Bush era tax cuts implemented for the rest of the population.
Many republicans did not support this plan. It is very likely they did not support it because Bohner compromised on his no tax rises stance. If Boehner was willing to compromise on the on the no-tax-hikes issue, it is possible he will be willing to compromise even further, meeting Obama at a lower number than $1,000,000. On the other hand, with his republican colleagues, it is hard to imagine he would make a further proposal of tax increases.
Boehner said that “We’ll continue to work with our colleagues in the House and the Senate,” . He also made clear that “…we only run the House. Democrats continue to run Washington.”
The Speaker of the House is willing to work with others to come up with a plan but, hope currently looks minimal.
Many republicans understanding that raising taxes on the rich more and not taxing others more is stealing, not logical, and unconstitutional. Many democrats have a completely different wavelength of thinking, assuming that they are licensed to take the wealthy’s hard earned money to make up for their government deficits.
Falling off the Cliff
“Unless the President and Congress take action the tax rates will go up on every American tax payer and devastating defense cuts will go into effect in 10 days” Boehner said. With the Fiscal Cliff looming, the fruit of the decisions or lack thereof is uncertain. Tax increases and spending cuts of high volume will automatically go into effect but the consequences could lead to another recession or a less weighty reaction.
When asked if he was concerned about losing his speakership, Boehner responded with a “no, i’m not” . The reason for the the republicans not supporting plan B as Boehner did, was probably because they did not want to be accused of raising any taxes.
The Dollar could experience Forex Risk Aversion in the coming months as the possibility a Fiscal Cliff Catastrophe seems likely. While the Dollar loses it’s reputation as a “safe haven”, other currencies like the Australian Dollar could step up. With interests rates lowering all across the globe, the U.S. economy is definitely not the only one hurting. Forex Trading will definitely be influences by the Fiscal Cliff outcome.
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Do you have any thoughts concerning the Fiscal Cliff? What would you do if you had the responsibility of averting this catastrophe?
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