(Image: WikimediaCommons

BY JOSH LANDER AND SCOTT MALONE

ANCHOR CHRISTIAN BRYANT

For Washington lawmakers looking to take some time to rest after election day, not so fast. The so-called “Fiscal Cliff,” is fast-approaching and the COngressional Budget Office says if lawmakers can’t get it together, the country will head back into recession. Friday President Obama drew a line in the sand.

“I am open to compromise ... but I refuse to accept any approach that is not balanced. I am not going to ask students and seniors and middle-class families to pay down the entire deficit while people like me making over $250,000 are not asked to pay a dime more in taxes.”

So what exactly is the “fiscal cliff”? In 2011, Congress agreed on a series of painful, automatic and across-the-board spending cuts to force members to come up with a deal to lower the deficit.  

Those cuts — which would affect public sector workers, government contracts and even NASA — are set to take effect January 1, 2013. That plus the expiration of the Bush tax cuts combine to make what the press has dubbed the “fiscal cliff.” (Via WJLA)

OK, so action is obviously necessary. One CNN analyst says, there’s simply no way we can afford to let the country take a dive.

“It will reduce GDP by almost 3%, and keep in mind its only two percent now so that means going negative, going back to recession. They predicted that unemployment would go back over nine percent which would be terrible.”

A writer for the Wall Street Journal broke down the deep deficit, and says there are five big, bad topics the government needs to focus on - and ignore everything else. But trimming them down is a tall order.

“So if you decide how much to spend on benefits, how to slow the growth in health care spending, how many employees the government needs, what to do about defense, and how to tax people, you’ve pretty much solved the deficit problem.”

Meanwhile, the non-partisan Congressional Budget Office released two reports Thursday, one detailing three changes that would drastically drop the deficit.

The government could repeal certain parts of the Affordable Care act to reduce the deficit by $150 billion in 2020; reducing Social Security benefits or raising the age to qualify would shave off $30 billion...while letting the automatic spending cuts happen would curb the deficit by $15 billion in 2020. (Via National Journal)

Barring congressional action, federal tax rates will increase on New Year’s Day, and $110 billion in federal spending cuts will take place as an initial down payment for over $1 trillion in cuts required over the next decade.

Washington Faces Fast Approaching Fiscal Cliff

by Scott Malone
1
Sources:WJLACNN
Transcript
Nov 9, 2012

Washington Faces Fast Approaching Fiscal Cliff

 

(Image: WikimediaCommons

BY JOSH LANDER AND SCOTT MALONE

ANCHOR CHRISTIAN BRYANT

For Washington lawmakers looking to take some time to rest after election day, not so fast. The so-called “Fiscal Cliff,” is fast-approaching and the COngressional Budget Office says if lawmakers can’t get it together, the country will head back into recession. Friday President Obama drew a line in the sand.

“I am open to compromise ... but I refuse to accept any approach that is not balanced. I am not going to ask students and seniors and middle-class families to pay down the entire deficit while people like me making over $250,000 are not asked to pay a dime more in taxes.”

So what exactly is the “fiscal cliff”? In 2011, Congress agreed on a series of painful, automatic and across-the-board spending cuts to force members to come up with a deal to lower the deficit.  

Those cuts — which would affect public sector workers, government contracts and even NASA — are set to take effect January 1, 2013. That plus the expiration of the Bush tax cuts combine to make what the press has dubbed the “fiscal cliff.” (Via WJLA)

OK, so action is obviously necessary. One CNN analyst says, there’s simply no way we can afford to let the country take a dive.

“It will reduce GDP by almost 3%, and keep in mind its only two percent now so that means going negative, going back to recession. They predicted that unemployment would go back over nine percent which would be terrible.”

A writer for the Wall Street Journal broke down the deep deficit, and says there are five big, bad topics the government needs to focus on - and ignore everything else. But trimming them down is a tall order.

“So if you decide how much to spend on benefits, how to slow the growth in health care spending, how many employees the government needs, what to do about defense, and how to tax people, you’ve pretty much solved the deficit problem.”

Meanwhile, the non-partisan Congressional Budget Office released two reports Thursday, one detailing three changes that would drastically drop the deficit.

The government could repeal certain parts of the Affordable Care act to reduce the deficit by $150 billion in 2020; reducing Social Security benefits or raising the age to qualify would shave off $30 billion...while letting the automatic spending cuts happen would curb the deficit by $15 billion in 2020. (Via National Journal)

Barring congressional action, federal tax rates will increase on New Year’s Day, and $110 billion in federal spending cuts will take place as an initial down payment for over $1 trillion in cuts required over the next decade.

View More
Comments
Newsy
www1