The Fiscal Cliff
As the media so loves to tell us, the United States is heading for the 'fiscal cliff'. This means that if an agreement on spending cuts, and/or tax increases is not made by January 1st 2013, there will be automatic budget cuts, called sequestration.
Absolutely no one wants that to happen. The issue lies in getting the two sides of the issue to sit down and actually talk to each other, without trying to bite each others heads off. Most Republicans, those who have signed Grover Norquist's pledge, do not want to raise taxes on anyone for any reason. However, if they do not come to an agreement with the Democrats, who see tax increases on the wealthy as necessary to close the deficit, then the Bush tax cuts will automatically expire, meaning that everyone in the country will have to pay more in taxes.
Considering the delicate economic climate, neither side can afford to be blamed for stalling negotiations. Many Republicans, in fact, have reneged on their signing of the no tax increases pledge, saying that it can no longer be upheld and is no longer feasible.
At this point I no longer really care about what the agreement, which I hope the politicians reach, contains. So long as we do not plunge into the abyss, I think that any solution will be welcome. The alternative is far too menacing.
No comments:
Post a Comment