The congress was finally able to reach a short-term deal, which allowed the United States to avert the fiscal cliff. With that being said, this was nothing more than a short-term deal in the fact that all it really did was extend the tax breaks for those making less than $400,000 per year. The republican house appeared to determine they needed to just go along with what the democratic senate and president Obama had requested to ensure the economy did not return to a recession. The republicans really wanted to see some spending cuts made and some tax breaks cut back, but the only thing of that nature they received was the ending of the two percent social-security tax cut.
Deb Fischer (R-NE) of the senate said in the republican’s weekly address that spending cuts do need to be made, but that they are hoping to not have to make any cuts to military spending. However, she did say that the cuts would likely be geared more towards entitlement programs as many believe this is one of the last resorts to avert having to raise the debt ceiling. Raising the debt ceiling would be a horrible idea according to experts as it would make it even tougher to address the long-term financial issue. Fischer did mention that Obama will likely be requesting to have the borrowing limit increased, but she, and many others, believe that other issues need to be straightened out first.
She went on to say that she believes the military is one of the most-valuable programs the United States have, and she believes they should continue to receive the required funding to protect the country. She said that people can likely expect to see cuts to social security, Medicare and Medicaid. She claims that these are the biggest three programs that are really driving up the trillions of dollars’ worth of debt the United States currently has.
However, cutting entitlements is also a touchy subject, which she and others also realize. People have paid into this program for much, if not their entire, of their lives, and they deserve to receive what they paid in. Cutting people out of the social-security entitlements these citizens have paid into would be nothing less than a Ponzi scheme. With that being said, she did mention that some reform needs to be done to these programs, or no one will have access to them in the future.