Obama and the Cliff

[CajunRaven]

They'll kick the can.

[soulflower]

They'll kick the can.

I'd be shocked if no deal is reached to avoid the automatic cuts and tax increases. Both parties have too much to lose.

They will either agree to the deal that Boehner and Obama were working on in the summer of 2011 or agree to another 6-month extension of the current budget.

My opinion is that by kicking the can, we're just prolonging our economic and fiscal pain. If we just let the cuts and tax increases happen, yes there will be short-term pain but we're likely to recover faster than if we keep adding debt at the current pace.

[ms maggie]

not quite correct...the withholding taxes kick in on the first paycheck after January 1...you would notice a decrease (maybe even significant) in your take home pay...

you can cut the budget in a lot of places, including defense and do no harm..

essential services-- defense (that includes the Intelligence Community), law enforcement, border security, port security, and medical services....

Really? Payroll depts can react that quickly? Maybe they can, just asking.

[Anne68]

I'm pretty sure this "cliff" thing is a metaphor Bernacke came up with to scare folks. Now the markets may react as if it's really that drastic, but it's not.

Taxes increases on Jan 1. Well who the hell pays their 2013 taxes on Jan 1? The Congress can reinstate (for all but the top) and make it retroactive. Budget cuts a little more dicey, but also can't think of anything that couldn't be rolled back, though that could get messy esp w military contracts, people getting laid off, called back etc.

Metaphor?

Please tell me you're kidding, right? Please...