Thursday, December 27, 2012

Some are Pessimistic about any Fiscal Cliff Resolution

With anxiety rising as the country lurches toward a “fiscal cliff,” lawmakers are increasingly skeptical about a possible deal, and some predict the best possibility would be a small-scale patch because time is running out before the year-end deadline. 
Sen. Joe Lieberman predicted Sunday: “We’re going to spend New Year’s Eve here, I believe.”  
Even those who see the possibility of a deal don’t expect a lot. 
Sen. Kay Bailey Hutchison, R-Texas, said she expects “it is going to be a patch because in four days we can’t solve everything.” 
With the collapse Thursday of House Speaker John Boehner’s plan to allow tax rates to rise on million-dollar-plus incomes, Lieberman said: “It’s the first time that I feel it’s more likely we’ll go over the cliff than not,” meaning that higher taxes for most Americans and painful federal agency budget cuts would be in line to go ahead. 
[...] 
If no resolution, we can expect 2013 to include:
Some $536 billion in tax increases, touching nearly all Americans, because various federal tax cuts and breaks expire at year’s end. Taxes would jump $2,400 on average for families with incomes of $50,000 to $75,000, according to a study by the non-partisan Tax Policy Center. 
About $110 billion in spending cuts divided equally between the military and most other federal departments. The nation would lose up to 3.4 million jobs, the Congressional Budget Office predicts.
Read the full story HERE.

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