What's the problem? Are we Democrats and Republicans or Americans? Congress needs to get off their collective asses...

The infamous Rodney King in his first interview after his beating by over-zealous LAPD officers said "Can't we all just get along?" While not the smartest guy in the world, he had wisdom that we all should live by.

Resolving the bickering in Washington over the upcoming "Fiscal Cliff" slated for January 1, 2013 should be a no-brainer.

“Fiscal cliff” is the popular term used to describe the dilemma that the U.S. government will face at the end of 2012, when the terms of the Budget Control Act of 2011 are scheduled to go into effect.

Among the laws set to change at midnight on December 31, 2012, are the end of last year’s temporary payroll tax cuts (resulting in a 2% tax increase for workers), the end of certain tax breaks for businesses, shifts in the alternative minimum tax that would take a larger bite, the end of the tax cuts from 2001-2003, and the beginning of taxes related to President Obama’s health care law. At the same time, the spending cuts agreed upon as part of the debt ceiling deal of 2011 will begin to go into effect. According to Barron's, over 1,000 government programs - including the defense budget and Medicare are in line for "deep, automatic cuts."

In dealing with the fiscal cliff, U.S. lawmakers have a choice among three options, none of which are particularly attractive:

  • They can let the current policy scheduled for the beginning of 2013 – which features a number of tax increases and spending cuts that are expected to weigh heavily on growth and possibly drive the economy back into a recession – go into effect. The plus side: the deficit, as a percentage of GDP, would be cut in half.
  • They can cancel some or all of the scheduled tax increases and spending cuts, which would add to the deficit and increase the odds that the United States could face a crisis similar to that which is occurring in Europe. The flip side of this, of course, is that the United States' debt will continue to grow.
  • They could take a middle course, opting for an approach that would address the budget issues to a limited extent, but that would have a more modest impact on growth.


If the current laws slated for 2013 go into effect, the impact on the economy could be dramatic. While the combination of higher taxes and spending cuts would reduce the deficit by an estimated $560 billion, the CBO estimates that the policies set to go into effect would cut gross domestic product (GDP) by fourpercentage points in 2013, sending the economy into a recession (i.e., negative growth). It also predicts that unemployment would rise by almost a full percentage point, with a loss of about two million jobs. With the current slow recovery and elevated unemployment, the US economy is not in a position to absorb the hit this would bring.

Want some more bad news? The fiscal cliff isn't the only problem facing the US. In the first quarter of 2013, the country will again hit the "debt ceiling" - the same issue that killed the markets in 2011 and triggered the automatic spending cuts that make up a portion of the fiscal cliff.

Should we walk off the cliff or can we can avoid all this by using some basic common sense? I vote for the latter. This is basic stuff. What's good for America should trump all else. I vote for America, not the Republicans or the Democrats, but Americans and the values many of us have fought for.

AtHomeSense Email Sign-up

PSSPROS.com

Enhanced by Zemanta

Views: 54

Comment

You need to be a member of San Pedro News Pilot to add comments!

Join San Pedro News Pilot

San Pedro News Pilot by email - sign up!

Delivered by FeedBurner

What is the SanPedroNewsPilot.com?

The SanPedroNewsPilot.com is the social network and information outlet for San Pedro.

Want to keep up with the news in San Pedro, become a member.


 

Membership has its privileges!

• Got news you think everyone should know? Blog it.
• Have a show or attending a benefit? Put it on the calendar.
• Got video of the big game? Embed it.
• Photos of the new storefront or the school play? Upload them.

Latest Activity

Hugh Hans von Kleist posted a photo

san pedro jam

Hi Everyone,I'm excited to annouce a new location for the San Pedro Jazz Jam, Iron City Tavern beginning this Saturday night April 29th. Instrumentalist, Vocalist come on out and make some music. This weeks house band includes, Sabine (piano); Jimmy…
yesterday
Hugh Hans von Kleist commented on Hugh Hans von Kleist's event San Pedro Jazz Jam
"Hi Everyone, I'm excited to annouce a new location for the San Pedro Jazz Jam, Iron City Tavern beginning this Saturday night April 29th. Instrumentalist, Vocalist come on out and make some music. This weeks house band includes, Sabine (piano);…"
yesterday
Hugh Hans von Kleist promoted Hugh Hans von Kleist's event San Pedro Jazz Jam
yesterday
Hugh Hans von Kleist posted an event
Thumbnail

San Pedro Jazz Jam at Iron City Tavern

April 29, 2017 at 10pm to April 30, 2017 at 1am
Hi San Pedro,I'm excited to annouce a new location for the San Pedro Jazz Jam, Iron City Tavern beginning this Saturday night April 29th. Instrumentalist, Vocalist come on out and make some music. This weeks house band includes, Sabine (piano); Jimmy Ford (drums); Teresa Sanchez (bass) and me.See More
yesterday

Sports Editor
Jamaal Kellen Street promoted Jamaal Kellen Street's blog post San Pedro High Baseball Is 2017 Marine League Champions
yesterday

Sports Editor
Jamaal Kellen Street posted a blog post

San Pedro High Baseball Is 2017 Marine League Champions

It's been a whirlwind of a month for San Pedro High baseball.First one of their own on the junior varsity level, Evan Jimenez, was the victim of a brutal beating during the first week of April. It brought their entire community together and miraculously by the grace of God through all the prayers from supporters,…See More
yesterday
Karen Cristy posted an event
Thumbnail

Metaphysical Meetup & Open House at GGIW Yoga at GGIW Yoga

June 4, 2017 from 12:30pm to 4:30pm
Drop by GGIW Yoga's unique open house featuring many different modalities of wellness and metaphysics. Visit a tarot card reader, experience reiki and chair massage, learn about your akashic records and runes meet our certified yoga and mediation teachers , wellness practitioners, local vendors and artisans, hands on crafting, and so much more! We're hosting FREE Drop-In Classes through out the day. A great way to get a little snippet of the classes we offer at GGIW and the amazing teachers…See More
Thursday
Lisa's event was featured
Thumbnail

Dinner With Friends - Pulitzer Prize Winning Drama at Little Fish Theatre

May 10, 2017 at 8pm to May 28, 2017 at 8pm
Dinner with Friendsby Donald Margulies, directed by Mark PiatelliRuns: Wed May 10, Wed May 17, Wed May 24 - 8pmSun May 21 2pmFriday/Saturday May 26-27 - 8pmSun May 28 2pmAn insightful play about the destruction of Beth and Tom’s marriage and the shockwaves it causes in their friends’ lives. “A surprisingly touching rumination about the changes that come with age: the changes redefining relationships, the changes within relationships...and the balances and affections that shift unexpectedly,…See More
Thursday

© 2017   Created by San Pedro News Pilot.   Powered by

Badges  |  Report an Issue  |  Terms of Service