Question Details

Will the ‘fiscal cliff’ be avoided?

Will the ‘fiscal cliff’ be avoided?

Asked by: Super Userkruijs in Politics » United States
Settled on 01/02/2013 14:53 Settled by Super Userkruijs
Winning option: settled question on option 'Yes'. Details: A last-minute deal will keep the U.S. from driving off the so-called "fiscal cliff," but higher taxes and continued political fighting in Washington threaten to shake the fragile economy well into 2013. A bill passed by Congress late Tuesday averts widespread tax increases and delays deep spending cuts that had threatened to return the country to recession. World stocks went up in response. http://abcnews.go.com/Business/wireStory/us-skirt-fiscal-cliff-faces-higher-taxes-18107456

Predictions

Background

Republicans and Democrats jousted on Sunday over the best way to avoid the “fiscal cliff” but also indicated a growing bipartisan consensus that any solution must include a combination of spending cuts and revenue increases.

“I think that’s a given, and I think the vast majority of Americans agree with that,” Senator Tom Coburn, an Oklahoma Republican, said on NBC’s “Meet the Press.” “The question is how do you do that and how do you allow taxes to rise at the same time [that] you fix the real problem? And the real problem is uncontrolled entitlement spending and a government that has grown massively.”

The debate appears to center on the extent to which Democrats are willing to reform entitlement programs and whether additional revenue will come only from loophole closures and economic growth — as Republicans favor — or also from higher income tax rates for wealthy Americans.

http://bostonglobe.com/news/nation/2012/11/12/democrats-republicans-debate-way-avoid-fiscal-cliff/gNUbzWUTdruWXNsONCIRRK/story.html

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   Super Userkruijs

heh, just the scenario I expected to happen as I made the question :-)

   Super Usergotmick

Granted a lot of the Bush-era and Obama tax cuts were not intended to be permanent, it didn't have to be a fricken cliff. The Budget Control Act of 2011 which set this all up was also written in desperation over the debt ceiling. It wasn't even a realistic solution. All said and done here, nothing was solved. Just another temporary solution while they pat each other on the back and continue digging themselves deeper. Surely someone can come up with a longer term plan to recover instead of more short term solutions at critical moments. We need real change and less hope and I don't see how it can possibly happen between these two parties.

   cici

The Senate "compromise" is raise taxes, and no cut to expenses. Good for them. Lets see what the House does. Maybe they will compromise the same way, one sided.

   Super Userkruijs

they will agree on a compromise.

   Super Usergotmick

Such an unproductive process...

   cici

they haven't come up with a budget in 4 years. Good luck with trying to come up with one in a week-end. Possibly they do have one hidden away, approved, etc. and they will come out with it 10 seconds before midnight and shout "happy new year". They don't want a budget, just a lifting of the debt ceiling, so they can still spend on whatever they want. Like the President raising all the Federal employees salaries. No money, but raise the salaries.

   cici

The President is going to Hawaii for the holidays. He can make phone calls from there but it's difficult to twist arms from there.

   Super Userkruijs

@cici although the fine has been announced, not sure if that money is coming in time :-)

   cici

Today the Federal Government took a fine of $4 billion from BP. that should help avoid the cliff. With no budget it's hard to figure these things out though.

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