The upcoming weeks will be full of Christmas shopping, conspiracy theroies regarding the Mayans, and hopefully some snow. Oh yeah, there’s also the matter of the fiscal cliff. The fiscal cliff is The fiscal cliff seemed to avoid a lot of attention during the Presidential campaign. The idea is that the Congress and the President must reach some sort of agreement so the economy won’t tank and taxes won’t go soaring up on every taxpayer when the calendar turns into 2013. The average increase will be by about two percent. That’s a huge percentage when you think about the number of families making due from paycheck to paycheck.
Now, if the fiscal cliff happens, it will be bad. Tax rates will rise. Spending will be cut. This is what many Americans want-more revenue, less spending. But this goes to dangerous extremes and will definitely hurt small businesses. This will hurt the Gross Domestic Prodcut by 4%. Which means another recession-when many people believe we are still in the one from 2008. This will be leading the headlines for the next few weeks. However, it seems that this time a deal must be reached, there is actually a chance it won’t be at the very last second. Several prominent Republican senators, including Maine Senator Susan Collins, are saying that they have to compromise and be willing to raise taxes on the very wealthy. So has Georiga Republican Senator Saxby Chambliss. It seems that Congress has realized that they need to act. This is in direct contrast from the Grover Norquist pledge-which most Republicans have signed-that promised not to accept any plan that would raise taxes. If the fiscal cliff happens, then it’s bad for everybody. If a deal is reached, then everybody wins in the long run. I think it’s good that this is having to happen. I don’t like to hear about this. It’s very concerning for the future of the country. But it means that Congress is actually doing something. Hoepfully, it will be for a long-term deal so we don’t have to deal with this again in a year.
Speaking for myself, approximately 15-18% of my paycheck is taken out due to taxes. I think that’s a fair amount, although there are many things I could pay for with that percentage. However, taxes must be taken out of each paycheck otherwise the country would not be able to function. Take the good with the bad. Make a deal Washington. Put the country first.