Craig Hash Fiscal Cliff

In an article I read on CNN.com. President Obama is on the move trying to get Republicans as well as Democrats to come together and compromise on a deal to avoid the fiscal cliff.  America is only five weeks away from going over the fiscal cliff, and as we have all learned we know what that means. Tax increases, as well as deep spending cuts are what we are all going to be getting for Christmas. Obama wants to increase the federal debt-ceiling, which could be needed as early at the beginning of 2013. Are we not already in enough debt? One of the proposed ideas to fix the fiscal cliff is that we raise the gas tax. By raising the gas tax, which was proposed in the Simpson-Bowles debt reduction plan in 2010 called for a 15 cent increase in the tax of gas that would cover the shortfall in our transportation budget. The gas tax itself is used for the funding of transportation, and the construction of roads Etc. needed to assist it. This is however just a short run assistance. Obama wants to increase the income tax rate for families that make over $250,000, and for individuals who make over $200,000. By doing this Obama swears that it would prevent a major tax hike for almost 98% of other Americans. Republicans on the other hand believe that if Obama increases the tax rate on any of the classes, then there will be a cut in job growth, especially in the area of small businesses, which let’s face it is what runs our country anymore. In the poll conducted after the release of this article, it showed that 45% of Americans would blame republicans if an agreement was not reached, and 34% would blame the president himself. With the end of the year quickly approaching however though, if republicans and democrats cannot come to some sort of an agreement then here is what will most certainly face Americans at the start of 2013. Unemployment will spike up to 9.1%, our economic growth will halt by 0.5%. the tax bill will rise by almost $4,000 dollars per household in 2013. So if you are in the middle class, which most of us are then you can expect to see about $2,000dollars more. However there is a chance that if we go over then Congress can still make a deal, seeing as how the tax hikes and cuts are spread out over a two year period. If we so go over Congress is going to have to work a lot faster than the rate at which they are going now.

http://www.cnn.com/2012/11/28/politics/fiscal-cliff/