NEW YORK, NY. (KPLR) – It's not math problems, but politics jeopardizing the country's financial future and the fiscal cliff. Larry Mendte looks at what's at stake.
Everybody has been talking about it, but no one ever takes the time to explain.
The fiscal cliff, it`s a scary word for politically motivated procrastination.
The fiscal cliff was created by every politician who talks about taking on the federal budget deficit, but instead keeps putting it off. In other words, all of them.
The white house and congress, republicans and democrats put off every difficult economic decision until after the election; but before they are sworn in for a second term.
It’s when the electorate is paying the least attention, so there is little or no accountability.
So as part of the fiscal cliff, is the increase in taxes and costs for Obamacare, the Bush tax cuts that are set to expire, a cut in the payroll tax that is set to expire, business tax cuts that will expire and automatic deep cuts in defense and Medicare that were mandated when congress couldn`t voluntarily come up with a deficit reduction plan.
And all of that is going to happen on midnight of December 31st, Happy New Year.
If the republicans and democrats don`t come up with a deal and we go over the fiscal cliff like Thelma and Louise, our tax bill will go up significantly.
So over the next few weeks you will hear lots of posturing, ridiculing and dire predictions by democrats and republicans. It is all to get you to blame the other side for whatever happens.
And here is what i think will happen. Right before Christmas, there will either be a compromise or congress and the white house will do what they do be best, they`ll extend the deadline on everything until next summer. For fiscal cliff the sequel.