The day of reckoning is aproaching when Bush-era tax cuts expire and automatic
government spending cuts kick in but amid the panic over the fiscal cliff, there is
a growing chorus cautioning against rushing into solutions.
Theses sentiments seems to ponder the question of " do we face a disaster if we
fail to act in the next six weeks but instead defer decisions until the early part of
next year? Many economists say No!!!
There is no doubt that the effects of the fiscal cliff will be dramatic should it be
allowed to run its course. The consequence of Congress's failure to reach an
agreeement last year on how to address America's over $16 trillion budget
deficit manifested in teh Budget Control Act of 2011.
If enacted, the act will see sequestration occur in the form of $1.2 trillion
worth of automatic spending cuts across defense and nondefense discretaionary
programs over 10 years, beginning Jan. 1.
President Obama emphasized that the deal must be balanced, however the
wealthiest Americans may pay a little more in taxes.
Reducing the cost of entitlements has always been a legititmate concern. It
is a complex process that must be careful and consciously considered.
