Fiscal Cliff – it is a modern saying, which means code of laws, which automatically will take effect in the United States of America since the 1st January 2013 on condition that government will not find any other solutions. According to these laws, taxes will extend for most taxpayers in order to decrease the deficit in the budget of the country.
In order to solve this problem House Speaker Boehner and President Obama met last Friday (23.12.12) in the White House. It was long negotiations but at least they did agree to do something. What exactly they agreed, nobody knows.
As it is written on insurancenewsnet.com:
"In the next few days, I've asked leaders of Congress to work toward a package that prevents a tax hike on middle-class Americans, protects unemployment insurance for 2 million Americans, and lays the groundwork for further work on both growth and deficit reduction," Obama said. "That's an achievable goal. That can get done in 10 days."
As for the Speaker, Boehner told to the government that they do nothing. His words, as they are reported on edition.cnn.com:
"There are a lot of things that are possible to put the revenue that the president seeks on the table, but none of it's going to be possible if the president insists on his position, insists on my way or the highway"
represents his indignation. Boehner thought that the best way is to package revenue hikes with most modern spending cuts, including such insurance programs as Medicaid and Medicare. He also said that he didn't want to embed higher taxes even for wealthy Americans.Now Fiscal Cliff is not discussed because of Christmas. Obama will celebrate it with a family. He also promised that a final decision would be done before New Year.