America is rapidly approaching the so-called Fiscal Cliff. Maybe you heard. Sign the secession petitions , because this is going to be an epic disaster. Or is it? That, obviously, depends on the outcome … and who you ask. The so-called “Fiscal Cliff” comes on January 1, when several tax cuts expire, and severe cuts to government spending are automatically triggered. It’s also been called “taxmageddon,” with the average American family set to see their taxes increase $3,700 in 2013 unless a new budget deal is stuck. The sticking point to solve the stand-off is what President Barack Obama calls a “balanced approach” of spending cuts and increased revenues. The president campaigned on the pledge to allow the tax rates for the rich to rise, while keeping middle class tax rates where they are currently. Obviously, Obama claims the 2012 election results are proof that the public agrees with him. Just as obviously, plenty of Republicans disagree. The GOP has called for the extension of all Bush-era tax cuts, along with massive spending cuts, in order to reduce the federal budget deficit. Will there be a “grand bargain” in which the two camps essentially split the difference and move on? Or would either side actually prefer the Cliff? The two sides have a few more days to make their cases to the public before Congressional leaders are called to the White House on Friday. That’s when negotiations start in earnest and we learn if the 2012 election made a difference in relations between the two parties. Don’t bet on it. Hopefully, clearer heads will prevail in the end and we will avoid the consequences that economists say could plunge the U.S. back into recession. Then again, this is D.C. How many clear heads even exist there?
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Fiscal Cliff: How Bad Will It Suck?!
