Avoiding the Fiscal Cliff
The looming fiscal challenge is a concern for all Americans. If Congress does not create a revised budget, mitigating the effects of the expiration of sequestration, Americans could face huge tax hikes and arbitrary spending cuts. In the wake of these dramatic changes, the U.S. could face another credit downgrade and fall into another recession.
The longer Congress goes without acting to avoid the fiscal cliff, the more investors lose confidence in America and its businesses, while businesses themselves take fewer risks in the form of expansion and increased employment. This could lead to slowed growth of the economy, higher unemployment, and an increased possibility of another recession.
In order to avoid the increased unemployment and additional hardships that would be caused by going over the fiscal cliff, both the House and the Senate will need to act in a timely manner to come to a bipartisan agreement to fix next year’s federal budget before tax hikes and spending cuts take effect. Congress needs to move forward with a balanced approach that includes new revenues and smart choices about current spending.
- House Republicans open door to 'new revenue' to curb debt
- Fiscal cliff: Congress weights another round of kick the can
- Timothy Geithner to warn on Europe, fiscal cliff
Return to the Issues Page