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Guns Guns Guns
Guest
A budget showdown for the ages could begin after this year's election and stretch well into 2013 — despite the threat that an impending half-trillion-dollar avalanche of tax increases and spending cuts might rekindle a national recession.
The reason: an unprecedented collision of high-stakes fiscal decisions, coming at a time of intense partisanship, a teetering economy, record federal deficits and, possibly, a new president.
The fight could easily stretch into 2013 due to the complex issues and the parties' deep differences.
On Jan. 1, tax cuts enacted a decade ago will expire.
Also ending will be this year's payroll tax cut, dozens of tax reductions for businesses and the exemption of millions of middle-class families from the alternative minimum tax — resulting in a one-year tax increase totaling around $400 billion.
Republicans insist on extending the reductions, arguing that the wealthy create jobs.
Around the same time, $65 billion in spending cuts in defense and domestic programs will begin taking effect, the start of $1.2 trillion in 10-year reductions triggered when last year's congressional supercommittee failed to reach a debt-cutting compromise.
Emergency benefits for the long-term unemployed will run out.
In early 2013, Congress also will need to renew the government's borrowing authority, a chore that nearly triggered a stalemate last summer and a first-ever federal default.
http://www.csmonitor.com/USA/Latest...rewing-in-Congress-over-budget-taxes/(page)/2
The reason: an unprecedented collision of high-stakes fiscal decisions, coming at a time of intense partisanship, a teetering economy, record federal deficits and, possibly, a new president.
The fight could easily stretch into 2013 due to the complex issues and the parties' deep differences.
On Jan. 1, tax cuts enacted a decade ago will expire.
Also ending will be this year's payroll tax cut, dozens of tax reductions for businesses and the exemption of millions of middle-class families from the alternative minimum tax — resulting in a one-year tax increase totaling around $400 billion.
Republicans insist on extending the reductions, arguing that the wealthy create jobs.
Around the same time, $65 billion in spending cuts in defense and domestic programs will begin taking effect, the start of $1.2 trillion in 10-year reductions triggered when last year's congressional supercommittee failed to reach a debt-cutting compromise.
Emergency benefits for the long-term unemployed will run out.
In early 2013, Congress also will need to renew the government's borrowing authority, a chore that nearly triggered a stalemate last summer and a first-ever federal default.
http://www.csmonitor.com/USA/Latest...rewing-in-Congress-over-budget-taxes/(page)/2
