America Falling off a Fiscal Cliff
As Congress returned to work on Monday following the Thanksgiving break, attention focused on efforts to reach a deal to prevent the country falling off a so-called fiscal cliff. Washington consensus says a failure to reach a deal over automatic year-end spending cuts and tax break expirations will be disastrous for an already fragile US economy. All of the Bush-era cuts are due to expire as well as President Obama's two per cent payroll tax reduction from 2010.
As Congress returned to work on Monday following the Thanksgiving break, attention focused on efforts to reach a deal to prevent the country falling off a so-called fiscal cliff. Washington consensus says a failure to reach a deal over automatic year-end spending cuts and tax break expirations will be disastrous for an already fragile US economy. All of the Bush-era cuts are due to expire as well as President Obama's two per cent payroll tax reduction from 2010.