We are one month away from what could be the next recession. If you watch the news or use the internet, chances are, you have heard the term “fiscal cliff”. The Fiscal Cliff is no longer a future predicament that we will have to deal with when it comes. It is here now and negotiations need to be made concerning how to handle it.
The pioneer event leading into this current predicament transpired in the Bush-era in the year of 2001. President Bush implemented tax cuts to last a 10 year period. President Obama continued this prescription in 2011, extending it until January 1, 2013.
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Just over four weeks away, we are now looking at rates climbing back to what we paid in 2001. That obviously would not be favorable, therefore the Republican and Democratic party are trying to develop a plan on how to handle the cliff.
Speaker of the United States House of Representatives John Boehner said today concerning the time frame of the fiscal cliff negotiations: “frankly, sooner is better than later”. With four weeks remaining, the White House is going to have a busy Christmas season.
It may be even busier than we expect. Especially since, in John Boehner’s words, “Right now, we’re almost nowhere.”[/column]
[column size=”1-2″ last=”1″ style=”2″] [/column]Well… that is comforting, especially since there have been about 12 years to prepare for this day. “You cannot escape the responsibility of tomorrow by evading it today.” ― Abraham Lincoln
Raising Taxes for the rich will hurt the economy
John Boehner made clear today that the President is wrongly approaching this situation. Tax increases on the wealthy will hurt small business not help the economy. “The president’s tax increase would be another crippling blow for small businesses,” he said. Not to mention, the proposed tax increases are theft.
John Boehner’s and the republican party’s approach is to get rid of special interest deductions and “close loop holes”. Taking this approach is “better for the economy pure and simple” Beohner said. For more details on those possibilities, please read Taxing the Rich is Unconstitutional.
The democratic proposal would like 1.6 trillion in new taxes, not even 400 billion in cuts, and extra spending which is greater than the amount they are willing to cut. Honestly, it is “not a serious proposal”.
Watch John Boehner’s conference here:
For more information on the Fiscal Cliff, visit this article.
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