Fiscal Cliff
Now that the election is over, president Obama feels he has the people's blessing in raising taxes on the wealthy earning $250,000 or more while the republicans would prefer a spending cut instead of a tax hike. There are multiple deadlines to promote action on all budget plans including a tax cut for the middle class expiring at the en of this year. I hope tho deal gets done and the government can limit the deficit as much a possible so the inevitable debt ceiling fight can be postponed as long as possible.
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Obama is going to have trouble passing taxes on the wealthy since the republicans have control of the House of Representatives and in their minds they have a better way of dealing with the deficit. I hope government can agree so we can end the deficit.
ReplyDeleteAnd as it turned out, a deal was made, yet I don't feel that any particular headway was made. It just seemed like the deal was a way to come to an agreement on the surface, but there are many more important decisions to be made before we make any notable progress to lower our deficit.
DeleteDespite this reported "optimism", I don't think the two sides will be able to agree on cuts that are substantial enough to avoid the "fiscal cliff". At this point, the deficit is ballooning so fast that revenue increases alone cannot compensate for the current rates of federal spending. Both need to be addressed, and I don't think meaningful, drastic spending cuts that should be done are actually going to get done.
ReplyDeleteI agree. It's going to take more than minor compromises to be really effective in avoiding the "fiscal cliff," and I cannot see that happening any time soon.
ReplyDeleteThis optomism is comforting and all but it is not realistic. The looming deadlines for this are indeed serious and the talk of spending cuts and increased taxes on the wealthier percentage of the population is what the country needs to get back on track financially, but I believe this action will come after the dealines have passed.
ReplyDeleteI don't understand why people would want to raise taxes on the wealthy. Sure, you could make the argument that they don't need all of the money that they earn. However, they did earn that. They use it to pay their bills, feed their families, and live the high life since they worked hard to get where they are. Plus, taxing only the rich dry won't decrease our deficit. Federal cuts and raising taxes on everyone in moderation is what is morally "correct" in my eyes.
ReplyDeleteI believe the looming deadline will prove challenging for politicians, especially Obama. Resolving such a large issue takes a long time. I believe we need a combination of tax adjustments and cuts to spending to solve such a complex problem.
ReplyDeleteWhile I like what retired Senator Conrad of North Dakota said, "Look, you can't settle every detail in these next few weeks. What you can do is agree on a framework agreement.", there will be many struggles amongst the two parties and even just laying down the framework to reduce the deficit will be a tedious task/ great struggle. The fact is the deficit has been growing at such a large rate, I do not have high hopes that what needs to be done (drastic spending cuts-in my eyes) will get done to the extent needed.
ReplyDeleteI believe that there is going to be a rough ride in trying to avoid the fiscal cliff. This is an obvious problem that will need something drastic to get results. At this point I am not confident that it will be taken care of just because of the previous four years, but I would love to have my opinion changed.
ReplyDeleteAlthough providing for this before the deadline hits is ideal, it is not likely. As we stumble closer and closer to the end of 2012 it will prove to be a quite the challenge.
ReplyDeleteI don't believe we will see any drastic changes in any aspect of government, especially taxes, because our Congress is so divided. The House of Representatives rests easy in the hands of the GOP, while the Democrats controls the Senate; nothing will easily be accomplished in this upcoming 4 years.
ReplyDeleteI agree with Talia. There should be changes in several different places in order to help fix our defecit. This issue cannot be fixed in such a short amount of time. It will take careful planning and a great deal of compromise between the President and the House.
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