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: 39

Comment

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

Join San Pedro News Pilot

Call (323) 200-9052 to learn more or click here to send an email.

San Pedro Weather

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

Marlene Bauman posted a blog post

Online Event - Call for Hand-made Craft Vendors

San Pedro Crafters, Bella Lili Bowtique, Handmade in Southbay and Marlene's Designs are looking for crafters of hand-made items to join us in an online auction on Facebook, with portions of the sales donated to the Save the Honey Bee Foundation.Yesenia Antimo of Bella Lili Bowtique has put together the vendor sign up page on Facebook and will do her best to answer questions about the process."Please note the link below is a sign up event for vendors only. Vendors this is where you will submit…See More
8 hours ago
Profile IconCentral San Pedro Neighborhood Council

Webinar Training for Small Businesses – Affordable Care Act 101

The Small Business Administration has scheduled Webinar trainings titled Affordable Care Act 101.  The webinars are intended for small business owners to learn the basics of the Affordable Care Act and how they can enroll in health insurance marketplaces.  In addition, Spanish-speaking small employers can join representatives from Small Business Administration, Health and Human Services […] See More
13 hours ago

Sports Editor
Jamaal Kellen Street promoted Jamaal Kellen Street's blog post POLA Softball Star Nicolle Miranda Verbals To Eastern Michigan
Saturday

Sports Editor
Jamaal Kellen Street posted a blog post

POLA Softball Star Nicolle Miranda Verbals To Eastern Michigan

During a strenuous summer, Port Of Los Angeles High softball senior-to-be Nicolle Miranda continued to search for a college to play for and showcase her all-around skills both in the circle, and at the plate.The search is finally over.Miranda, already the all-time greatest pitcher in POLA softball history has ended her…See More
Saturday
Heather Caine might attend Andrew Silber's event
Thumbnail

Navy Days in San Pedro at San Pedro Waterfront

August 5, 2014 at 6pm to August 11, 2014 at 7pm
Navy Days, which was canceled last year amid federal budget cuts, returns to San Pedro this summer with an added feature: special tours & a science expo for kids. Sponsored by the U.S. Navy as a way to educate local port communities about what the seagoing branch of the military does, Navy Days brings ships in for tours & informational talks. This year’s event takes place Aug. 5-11 and will feature two visiting ships. The Port of Los Angeles is now issuing free tickets for pubic tours…See More
Saturday
Profile IconCentral San Pedro Neighborhood Council

Upcoming Sewer Construction at 5 Points!

Delta Pipelines will be starting construction on a new sewer project starting at the intersection of Vermont and N Palos Verdes Drive on Monday, August 4th between 9am-3:30pm. This project will continue in phases throughout the 5 points intersection, westerly towards Rolling Hills Prep, expecting to be completed within eight weeks. Below is a breakdown […] See More
Friday
Profile IconSan Pedro News Pilot via Facebook
Thumbnail

Live Music at the Whale and Ale with Markus Carlton

sanpedronewspilot.com

Live music by local artist Markus Carlton, performing his own style of Jazz, Blues and original compositions. The Whale and Ale is an area favorite Gastro Pub…

FacebookFriday · Reply
Marlene Bauman posted an event
Thumbnail

Live Music at the Whale and Ale with Markus Carlton at The Whale and Ale

July 26, 2014 from 6:30pm to 8:30pm
Live music by local artist Markus Carlton, performing his own style of Jazz, Blues and original compositions.The Whale and Ale is an area favorite Gastro Pub featuring great food, and a full bar with TV for sports viewing.Markus, Andrew, Ben and the team say "HI" !!See More
Friday

© 2014   Created by San Pedro News Pilot.

Badges  |  Report an Issue  |  Terms of Service