The FISCAL CLIFF comes in two parts. On January 1 the Bush tax cuts expire and the middle class will get a $2,000 tax increase. Republicans want to extend all the tax cuts and Democrats want to raise taxes on persons making over $250,000.
The second part of the FISCAL CLIFF occurs every time the debt ceiling is approached. Congress approves a maximum amount of credit the US treasury can borrow. Because we are running deficits, the debt limit will be reached early in 2013. It used to be routine that Congress would approve an increase in the limit. Since 2010 and the emergence of the TEA party, Congress does not want to increase the limit without cuts in spending. They feel as I do that we cannot stand more debt. President Obama wants to increase taxes on the wealthy, but this will not balance the budget. It also may not increase revenue if income decreases. If an agreement is not reached, automatic spending cuts will occur as agreed to by a congressional committee.
The focus of this discussion is the survival of government. Who is looking out for the survival of everyone else? This is a cyle that will not change unless we stop the growth of government. Look at what is happening in europe and see what is in store for us if we continue on this path. I have a better idea with my proposal to reform Social Security.