Will Washington Be Able to Avert the Fiscal Cliff?
The spending cuts and tax cuts set to begin Jan. 1 provide the promise of recession. Can lawmakers find a solution before it happens?
National news outlets are now providing blow-by-blow accounts of Washington’s management — or lack thereof — of a looming “fiscal cliff.”
On New Year’s Day, a series of tax hikes and spending cuts are set to trigger. Experts suggest allowing changes would contract the economy in the first half of 2013 — a recession — but also slice the federal deficit in half. Lawmakers have other options, which include canceling some or all of these changes — which would send the debt higher — creating stopgap measures to delay the impacts, or developing a compromise solution.
There’s still a month, but compromise seems a long way off. President Obama’s administration delivered a proposal late last week that wasn’t much different from one offered earlier, and GOP leaders in Congress called it a “joke,” among other things.
Do you think the parties will grind to some sort of compromise solution to avoid the two most negative outcomes facing them, or will they keep their feet dug in right through the deadline, and over the cliff? Vote in our poll and join the discussion in the comments.