The “fiscal cliff” has embedded itself in the American collective consciousness. So what is the fiscal cliff? About.com says:
‘“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 other words tax breaks will end, especially the famous Bush tax cuts of 2001-2003. In addition, the next phase of Obamacare will go into effect. This will incur a tax increase for those without health insurance. Lastly businesses will also lose some tax breaks. This is not as alarming since some businesses do not even pay taxes *cough* GE *cough*. The short hand idea is that the deficit of the country is out of control, and the tax breaks can no longer affordable. The article also delineates three options that lawmakers might take to remedy the situation.
Post election poll data shows that:
Surprisingly, the data suggests that the GOP will be held most accountable; President Obama comes in at a mere 29% of the blame.
Honestly, we are all to blame for this. We have allowed our political ideologies especially the ones that have nothing to do with fiscal policy, get in the way of good government. The GOP’s arguments that the Democrat’s are for big government ignore the fact that the deficit was accumulated under President Bush. For some reason, military spending is not considered “Big Government” spending. Of course the Democrats are as much to blame; deregulation of the financial markets happened under President Clinton. Don’t be fooled, the sharp debates on reproductive right, and entitlement programs are obscuring the real problem, both parties spend beyond their means. One party loves their guns, and the other loves gambling. All we need is \booze and cigarettes and we have one hell of a Saturday night.
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Both sides are to blame. Obama has ran up deficit far quicker than Bush ever dreamed of; yet Bush was no slacker. If the cliff comes. there is going to be alot of misery- no matter who gets blamed, those incumbent will be tossed out. Look to see Senate switch hands–House may not, given the redness of the states that sent the reps. I think a deal will be made- Repubs will allow elimination of certain deductions, Dems will allow tweaking of entitlements- both of which need to happen, or we’ll end up like Greece.