Andrew Lichwala
11/28/12
Econ Paper
Fiscal Cliff Negotiations Delayed The United States Budget Control Act of 2011 set to take effect midnight Dec.31th. If the Budget Control Act takes affect the economy would be impacted dramatically. Taxes are going to be raised and federal spending will be cut, this would reduce the deficit by an estimated $560 billion. With the higher taxes and less federal spending the gross domestic product is predicted to fall by four percent, therefore sending us deeper into a recession. With the reduction in gross domestic product, unemployment is expected to rise by 1 percent. Negotiations to avoid the “fiscal cliff” have slowed recently. The latest roadblock in avoiding the fiscal cliff is the cost of federal retirement programs. Democrats and Republicans are disputing on how to deal with this aspect of the fiscal cliff. Democrats are saying “Republicans have yet to name their price for enacting legislation that would preserve tax cuts for the vast majority of Americans next year while raising revenue from the wealthiest 2 percent.” Meanwhile Republicans are saying “that it is up to President Obama to offer a plan to restrain the cost of Medicare, Medicaid and Social Security”. Medicare, Medicaid and Social Security are the government’s largest and fastest growing programs and Republicans are willing to agree to raise taxes if the cost of these programs is restrained. With less than four week until the fiscal cliff is upon us,
The Fiscal Cliff After reading the assigned articles The Economic Effects of the Fiscal Cliff by Douglas Holtz-Eakin and Ike Brannon, and Divided House Passes Tax Deal in End to Latest Fiscal Standoff by Jennifer Steinhauer, I learned many things about the Fiscal Cliff issue. In this essay, I will like to explain the detail of these two articles as well as some of my thoughts. After reading the articles, I understand that tax revenue and employment are the resources in our economy appear to be…
Supervised Internship Dr. Meric 11 December 2012 The Fiscal Cliff Can the United States handle another recession now or should we delay it until later? This is one of the main questions that President Barak Obama and Congress have to answer by December 31, 2012 in relation to what is now known as the “Fiscal Cliff.” While to some the decision may seem easy, in reality, nearly 500 billion dollars of public debt hangs in the balance. What is being regarded as one of the most important…
Fiscal Cliff was a major issue in the 2012 Presidential Election. The fiscal cliff is the large spending cuts and tax increases that are scheduled to be automatically enacted in 2012 unless congress takes actions. This was one of the important issues that the two presidential candidates had to address. But of course they both had different views. The Democrats want a combination of spending cuts and tax increases. Both the Republicans and Democrats are trying to find a way to solve this problem…
Period 1 11-27-12 Media Paper: The Fiscal Cliff The media today gives us Americans access to any type of information we are curious about, but there are faults. Some journalists and reporters of large broadcast networks may have an opinion of their own that they integrate into a story or report, this is called bias. Bias in the current problem involving the fiscal cliff will be targeted and compared from different sources. The fiscal cliff is a combination of expiring tax…
After the first fiscal cliff crisis of 2013, the United States is still recuperating while preparing for what seems like an inevitable second cliff. Sequestered budget cuts are being put into practice for vital government concerns such as defense, disease control, and schools. While our nation’s defense takes the hardest spending cuts, school district spending cuts are not far behind. Since the great recession began in 2008, school districts have suffered a devastating blow to both their federal…
Fiscal Cliff- Will Increasing Income Taxes Generate Higher Revenue? Abstract: In order to relief the major deficit America has been experiencing, President Obama and the Congress have agreed upon some major federal tax increase and spending cut decisions. In this paper, I am going to focus on the effect that marginal tax rates have on government revenue. First, I will look at how changes in marginal tax rates will influence people from different income levels. In addition, I will look at how…
FISICAL CLIFF “Fiscal cliff” is the popular shorthand term used to describe the conundrum that the U.S. government will face at the end of 2012, when the terms of the Budget Control Act of 2011 are scheduled to go into effect. In the United States, the fiscal cliff is the sharp decline in the budget deficit that could have occurred beginning in 2013 due to increased taxes and reduced spending as required by previously enacted laws. Those laws included the expiration of the 2010 Tax Relief Act and…
each citing how their economic plans would sustain both. They also discussed plans to keep manufacturing jobs in the U.S. and to make outsourcing abroad less appealing. However, although they were in a heated debate, the practical solution for the fiscal cliff that is coming next year did not come out. The two candidates also failed to propose an idea to decrease the 16 trillion and increasing government debt. Instead, they were busy attacking each other. President Obama criticized that Romneys tax reform…
A Pragmatic Proposal A proposal to invade china and kill all to prevent the United States from entering a depression because of the upcoming fiscal cliff in December 2012 America's leaders aren't leading and the damage is mounting. Citizens have complained for years about Washington's squabbling children, who would rather stamp their feet and hold their breath than resolve momentous issues of economic policy. The government officials cannot work together to get their job…
that the recent presidential election and the ever looming “fiscal cliff” were a big factor in investor uncertainty. During the month of October, the S&P 500 was down 1.85 percent, the Dow Jones down 2.39 percent, and the Nasdaq was down as far as 4.46 percent! He explains that this downward trend could be blamed on investor uncertainty over which party would control the White house and congress, and ultimately our political and fiscal future. With both parties offering different policies for more…