The US Congress essentially jumped off the Fiscal Cliff with a safety line attached, hoping that the line would catch on something and save them. Thankfully, at 2 a.m. New Years Day, they pulled their fingers out and saved themselves from the rising taxes and spending cuts that would’ve taken affect.
On Monday evening, President Obama finally reached an agreement with Senate Republicans and Vice President Joe Biden rushing to the Capitol to get it approved by the House of Representatives with the hope that it can all be approved by the midnight deadline. It was then approved provisionally at 2 a.m. New Years and passed officially 11 p.m. that evening, showing when the nasty brown stuff hits the fan, agreement can reluctantly be made, even if the majority of Republicans still disagreed.
But why did it take so long? It’s not exactly a minor concern; the effect of the spending cuts and tax rises would’ve halved the deficit but likely would’ve raised unemployment and brought the USA into recession again. It’s simple; it’s just another case of politicians dragging their heels on the major issues and then kicking up a fuss towards the deadline.
Along with the rich and hospitals, victims of Hurricane Sandy also lost out on the possibility of a recovery Bill being passed a.s.a.p. The House had originally been expected to vote on it after voting on the tax and cuts package, but the Republican leadership chose otherwise, outraging representatives from the disaster stricken area. Unless they change their mind soon, the bill will have to go back to the Senate causing yet more unnecessary delays
But then that’s what Congress knows best.
- Everything you need to know about legislation passed to avert ‘fiscal cliff’ (links) (al.com)
- Congress approves fiscal cliff deal (bizjournals.com)
- US Senate approves ‘fiscal cliff’ deal‚ crisis eased (thehimalayantimes.com)
- Doubt surrounds US ‘fiscal cliff’ debate (bigpondnews.com)
- Cliff avoided: Congress staves off tax hikes (utsandiego.com)