The Joplin Globe
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Come Jan. 1, tax increases and spending cuts will occur unless Congress and the president take some action to change current laws.
This situation was created about one year ago by both Congress and the president. Now the country is facing what many call a “fiscal cliff.”
However, it seems that thousands are ready to hurl themselves over the cliff before the Nov. 6 election.
Major defense contractors are considering issuing notices of potential layoffs prior to the election. The layoffs themselves would not occur until the first of the year, but having such a notice in hand by individuals could of course cause them to reconsider their votes in November.
There is little question that without congressional action, the reductions in spending provided to defense contractors will be hefty. But at this point no one knows exactly which programs or contracts will be affected. Such uncertainty causes great concern in the boardrooms and on the production floor.
If such cuts in spending and increases in taxes are carried forward, the effects on unemployment and growth in the economy will be felt across the nation. Congress avoided such political turmoil a year ago with its attempt at a short-term fix.
The real tragedy in this particular instance is a complete failure on the part of Congress and the president to come to grips with the underlying problem of not increasing government revenues AND reducing spending at the same time to incrementally move the country in the direction of living within our means. Both political parties are now trying to blame the other party for this situation.
We’re calling baloney on the blame game.
Guess what. After the November election — and no matter who wins — it is almost certain that another debt ceiling debate will take place in a new Congress early in 2013 to yet again avoid default by our federal government.
