Thursday, January 3, 2013

Cliff averted, it's on to the next fiscal crisis

Onward to the next fiscal crisis. Actually, several of them, potentially. The New Year's Day deal averting the "fiscal cliff" lays the groundwork for more combustible struggles in Washington over taxes, spending and debt in the next few months.
President Barack Obama's victory on taxes this week was the second, grudging round of piecemeal successes in as many years in chipping away at the nation's mountainous deficits. Despite the length and intensity of the debate, the deal to raise the top income tax rate on families earning over $450,000 a year - about 1 percent of households - and including only $12 billion in spending cuts turned out to be a relatively easy vote for many. This was particularly so because the alternative was to raise taxes on everyone.

Read more: http://hosted.ap.org/dynamic/stories/U/US_FISCAL_CLIFF?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-01-03-00-34-12

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