To Tax, To Cut, or To Do Nothing

     For the last two years, probably longer, the congressional budget committee has been at a stand-off.  Maybe, just maybe, an end is insight to this stale mate and it doesn't sound pretty. Lori Montgomery describes the culmination of our budget problems in a fairly simple way, in her Washington Times article Obama Ready to Veto a Bill Blocking 'fiscal cliff' Without Tax Hike. Since 2008, Lori has followed closely U.S. economic policy and the federal budget. Her articles center around the healthcare overhaul and other legislation which effect the federal budget. I like this article, because its one I actually understood.
     It doesn't take a scholar to understand, the country is facing serious problems with our deficit, and we know congress can not agree on plan to address this problem, and at sometime in the near future something has to be done. But what? Isn't this the place where everyone stops thinking and starts arguing the talking points of the day? And if you want to keep up with the conversation, know the new vocabulary, like 'taxmagedon' and 'fiscal cliff'. What does it all mean? Change. One way or another, by the end of this year, there are going to be big changes to U.S. fiscal policy.
      'Fiscal Cliff' is at the end of this year, when the Bush tax cuts end, temporary payroll tax cuts end, and budget cuts begin. According to this article Obama will veto legislation to block the end of the Bush tax cuts, if republicans don't include a measure to increase taxes on the wealthiest Americans.  To balance the budge,t democrats want to raise the taxes on the wealthiest three percent. The republicans, on the other hand, want to keep tax rates the same for all, but cap the amount of deductions, the 'Buffet Rule'. What it will eventually come down to, is the election. It is unbelievable to me that our 'lame duck' congress is holding us all hostage, until we vote. Then, depending on who is President, they will scramble to pass some legislation, and call it bipartisan.
     After reading this article I appreciate Lori Montgomery's ability to stick to the point. No matter your point of view, the facts or possibilities of what is likely to happen to over the next few months, (as everyone panics to solve the problem of the U.S. budget) are a little clearer. And no matter your point of  view, I hope you feel a little compempt for our congress.