Poll after poll rejects the Republican plan to avert the monetary calamity by cutting spending only and fixing the crisis by eliminating a number of tax deductions. This is also the plan pretty much widely rejected by the voters at the ballot box on November 6 when it was touted as a solution by then Republican candidate for President, Mitt Romney.
The President has a more balanced approach of spending cuts and a return to the Clinton-era tax rates for the top two percent of earners in the U.S. For 98 percent of us, we will not see our tax rates change at all. Republicans argue that the President’s plan hurts small businesses and job providers and continue to sit arms folded and refusing to acknowledge the results of last month’s election.
If the United States is allowed to go over the fiscal cliff, it could trigger another recession with extreme spending cuts and major tax increases. President Obama claims this would amount to $2,000 more in taxes paid by average American families.
Don’t misunderstand me, I’m not saying the President’s plan is perfect. I am saying that the President has more of a political tailwind at this point than a Congress with just a 10 percent approval rating. That will go down even more if this crisis doesn’t get solved. I know I don’t have $2,000 more to pay Uncle Sam, do you?