Does the president think he is King? Is he being stubborn or arrogant? Should he go for the loopholes and get the same amount of money thorough other deals (getting the same through taxes)? Will our nation fall over the cliff? What will happen on January 2, 2013? What will happen to most of the deposits? Will they be uninsured by the FDIC? Are we headed towards another recession? Can Obama get his way, if Congress does not work out a deal? According to Reuters, President Barack Obama stood on his ground with higher taxes for the rich yesterday. Looks like the top 2% of the wealthiest people, will be paying up. As of today, you can say he is standing his ground and wants the government in full control. The light is shining on the president about the fiscal cliff. So what’s the cliff all about?
What is a Fiscal Cliff?
According to Wikipedia, a fiscal cliff refers to the laws leading to the fiscal cliff include tax increases due to the expiration of the Bush tax cuts and spending cuts under the Budget Control Act of 2011.The Budget Control Act of 2011 was enacted as a compromise to resolve disputes concerning debt ceiling.
Let’s look at the cliff and compare it to everyday situations, like bills to help you understand. If you have more bills coming in monthly, than your monthly salary, you are over the cliff. You will go over the cliff, if you don’t do something about your income and your debt. Some people let their bills just pile up and eventually, they default. The result of not paying your bills will lead to debt collectors suing you in court and garnishing your wages. Let’s just say the United States is about to go over the cliff and time is about to run out at the end of 2012. You might be wondering, what is the real problem? Can it be lack of budgeting and being a big spender? Have they been an irresponsible spender?
You might also be wondering what lead our country to a fiscal cliff. I won’t even go there; we already know the answer to that. What do you do when you get a job that the last president messed up? Everybody wants to blame some body, so they are blaming it on the King. Ideally, we would not be in this type of situation, had Mitt Romney won the election. Why? The heat would not be on the president, because the dead line (fiscal cliff) would get extended, to give the new president more time. Honestly, why don’t the give the King more time?
Here is another example for newbies. If two people don’t work out their marriage, they just divorce in the real world. The children usually get weekend visitation etc. You know the deal. Unfortunately, Congress and Barack Obama have to be more compassionate to the citizens of this country. The question is will they work out their differences? There are huge problems coming at the beginning of 2013, if no one does anything. It seems the only person that might get his way is the King. Our economy is going over the cliff. It’s kind of like saying do I really want to eat or starve. Pretty soon, you have to eat or starve. But no one has made that decision yet. Jobs are being held off, most companies have made it big profits and they are NOT hiring.
We know for sure that tax increases is a big problem for the wealth and spending cuts will expire soon. Are the leaders thinking of the country as a whole? Can they get it together? The heat is up in Washington and we cannot ignore the secession in several states. Will the rich pay 1.6 trillion in taxes?
So what are most consumers concerned with these days. Christmas is just around the corner and still no jobs. Unemployment has been a major issue since the financial crisis and big corporations are waiting it out. Take a look at what is about to happen:
Unemployment is about to be halted in January 2013.
The expiration of the Bush tax cuts
The end of payroll tax holiday
The expiration of insurance
Reduction in defense spending
Credit Down Graded
Balloon tax payments
More job loss
According to the Pew Research Center, 53% of those polled said they would hold Republicans responsible for going over the cliff. 27% percent said they would hold the president responsible. Do you think the debt ceiling will rise? Most likely it will rise to avoid the fiscal cliff. Will the economy get better if over 500 billion is taken out of the economy? Does it sound like the date will be pushed back to avoid the fiscal cliff? It seems that’s the only hope, to help the economy grow. Let’s be real, the electron is over and as my mother us to say “we have bigger fish to fry”. As budget and debt crisis continues, everyone is waiting to see the results. If we don’t go over the cliff, the debt ceiling is going to rise, which is going to be a bigger problem. The spending is out of control and no one wants to admit the real problem. The debt and budget crisis continues.