In its May 2012 report titled Economic Effects of Reducing the Fiscal Restraint That Is Scheduled to Occur in 2013, The Congressional Budget Office writes:
“Under current law, the federal budget deficit will fall dramatically between 2012 and 2013 owing to scheduled increases in taxes and, to a lesser extent, scheduled reductions in spending—a development that some observers have referred to as a ‘fiscal cliff.'”
This combination of expiring tax cuts and across-the-board government spending cuts is scheduled to become effective December 31, 2012.
This Examiner asked members of Biznik, an online network for independent business people, “Are small business owners/entrepreneurs concerned about the ‘fiscal cliff?’“
Founder of Seattle area Total Wealth Coaching, Kate Phillips says, “Am I concerned? Of course! Though I do believe there is an element of fear-mongering and that Congress will likely work things out, I think the best thing we can all do is to build sustainable businesses that can weather a storm.”
Arthur Torelli of Electronic Processing Consultants in Seattle says, “I am concerned with this issue but mostly on the short term only. I know that congress will work these issues out long term but I’m afraid that they will let us fall off of this ‘cliff’ first and then resurrect us. This seems to be the new type of politics. Let the country go to hell and then create some type of half measure and say ‘look it isn’t all that bad after all.'”
Dennis E Dilday, D.C., a chiropractor at the Everett Chiropractic Center, states, “It’s a concern, but it’s probably a blessing.” He explains, “Health care is undergoing a consolidation that makes the rich richer and the rest more marginalized. Consumers have to become smarter. The real ‘costs’ of mainstream medicine are now being compared to the real value of taking care of one’s health. That isn’t done through mainstream medicine. People are finally recognizing that continuing on our current course in health care is unsustainable.” He believes the fiscal cliff will be more of the “recent same,” calling it “the new normal.”
Richard Gabel of Meadow Creek Business Center in Issaquah concurs with Dr. Dilday, “Health care is a mess. We need to address cost before we worry about who’s going to pay for it.” He says, “The last time we hit the fiscal cliff the US found its debt down-graded. I don’t see us getting down-graded again, but in the absence of a meaningful resolution to the revenue and spending issues we face, the economy could be in deep weeds for some time to come.”
Certified Financial Planner Steve Juetten of Juetten Personal Financial Planning LLC in Bellevue outlines a positive plan of action in the November 13, 2102 issue of the JPFP Financial Freedom Newsletter, “Now more than ever, I encourage [people] to focus on the things they can control and ignore the things they cannot control. The economic discussions in Washington, the European mess, troubles in the Mid-East, and China’s economy are all outside our scope of influence. What we can control are:
- The quality of our relationships,
- The quality of our work,
- Our overall asset allocation,
- How much we save and spend.
Focus on these and you will be better off.”
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