While December is usually the time of year everyone looks forward to spending time with friends and family followed by the celebrations as the New Year turns over, this year many Americans fear what they once enjoyed. The knowledge of the “fiscal cliff” has spread far and wide and left many people wondering what will happen to them this next year.
Yet, there are many people wondering just what is a “fiscal cliff”? According to http://bonds.about.com:
“Fiscal cliff” is the popular shorthand term used to describe the conundrum that the U.S. government will face at the end of 2012, when the terms of the Budget Control Act of 2011 are scheduled to go into effect.
In summary, the “fiscal cliff” is the cut off day when former bills and laws passed both by Barack Obama and former President George Bush will end and the results will be drastic and possibly deadly to the all ready fragile economy. The rate of unemployment will rise, tax rates for the majority of the U.S. will rise all leading to businesses having to cut their own budgets to try and stay afloat.
With this knowledge on the horizon, where are the politicians on this crucial and now pressing issue? Despite the acknowledgement that something must be done before the turn of the New Year, all talks and negotiations are at a standstill.
According to http://abcnews.go.com in the article entitled “‘Fiscal Cliff’ Talk Feel Wintry Chill”:
The White House is mandating that tax hikes for the wealthiest Americans must be part of any deficit-reduction deal with congressional Republicans, who stand equally opposed. Negotiations have ground to a standstill.
Despite this standstill, Obama will take his show on the road to visit a middle income family in order to try and promote and prove that extending the current and lower tax rates for 98 percent of American earners is a necessity to protect them through the end of this year and the beginning of the next.
Even with both parties in agreement over this point, they both remain embroiled in talks over raise the taxes for the upper income earners as well as possible spending cuts.
Dean Clancy, a member of the Freedom Works legislative council was quoted by http://www.huffingtonpost.com for their article “John Boehner Fiscal Cliff Proposal Opposed By Powerful Conservative Groups” saying that
‘If the deal is a bad deal, then this will be a big part of our scorecard and we’ll work very hard to educate the grassroots about why it’s a bad deal,’ Freedom Works legislative counsel Dean Clancy told The Huffington Post. ‘We’re not going to be loyal soldiers and just fall in line because it’s the best that could be gotten, if it’s a truly bad deal.’
So just what was John Boehner’s plan? He believes in tax fairness for all Americans. For Boehner, that means not raising the taxes on the higher income spenders in America but looking more to middle America for the money to get out of the current recession.
The debates rage on, one party fighting to draw money from the upper crust and one party looking to draw money from the middle class. If this standstill lasts much longer, the Republican party might get just what it wants when Bush’s Budget Control Act will end and middle America will be paying the price.