Fiscal cliff is government playing kick the can
Dec. 11, 2012 at 6:11 a.m.
Editor, the Advocate:
How did we arrive at the fiscal cliff?
About ten years ago, then-President Bush wanted to cut taxes for everyone. The Democratic Party insisted that the reduced tax rates expire at the end of 2012.
Several years ago, the government needed an increase in the debt limit. In return for this increase, the Congress agreed to form a "super committee" charged with finding large spending cuts. If the committee failed, automatic spending cuts would begin at the end of 2012. The committee did nothing. Hence, the automatic cuts are about to begin.
We arrived at the so-called cliff because Congress and the president kicked two cans down the road and they both landed at January 1, 2013. Everyone got what he or she wanted and now no one wants it.
The United States government spends $3.3 trillion each year. It earns (taxes us) $2.3 trillion. Eventually, we are going over the cliff. Why not now?
W. E. White, Victoria