With the collapse on Thursday of US House of Representatives Speaker John Boehners plan to allow tax rates to rise on incomes of more than US$1 million, Senator Joe Lieberman said: Its the first time that I feel its more likely well go over the cliff than not, meaning that higher taxes for most Americans and painful federal agency budget cuts would be in line to go ahead. If we allow that to happen it will be the most colossal consequential act of congressional irresponsibility in a long time, maybe ever in American history because of the impact itll have on almost every American, said Lieberman, an independent.
If US President Barack Obama and Congress cannot reach a deal by Monday, the so-called fiscal cliff looms. About US$536 billion in tax increases, touching nearly all Americans would begin to take effect next month, because various federal tax cuts and breaks expire at years end. Also, about US$110 billion in spending cuts divided equally between the military and most other federal departments would be automatically triggered.
The fear is that the combination of tax increases and spending cuts would push the fragile US economy back into recession. Senator Jon Barrasso, a member of the Republican leadership, predicted that the new year would come without an agreement, and he faulted the White House. I believe the president is eager to go over the cliff for political purposes. He senses a victory at the bottom of the cliff, he said.
Democratic Senator Kent Conrad, chairman of the Senate Budget Committee, was incredulous at Barrassos assertion that there is only one person that can provide the leadership on such a matter vital to the nations interests. There are 535 of us that can provide leadership. There are 435 in the House, 100 in the Senate and there is the president, all of us have a responsibility here, he said. And, you know what is happening? What is happening is the same old tired blame game. He said/she said. I think the American people are tired of it. What they want to hear is what is the solution?
More
Senators point fingers as fiscal cliff closes in - Taipei Times