Obama’s Plan to Avoid Fiscal Cliff

For a long time, the United States has been in a substantial amount of debt. However, it was not until around the presidential debates this year that a huge stir was created about the situation, which left every news station covering the fiscal cliff practically 24/7. To be exact, the United States has $16 trillion in debt. A record number of people have been unemployed since what experts refer to as the start of the recession, which occurred in 2008 when the housing market took its biggest hit yet. Obama and others realize that something needs to be done about this issue, and it needs to be done quickly because financial gurus have said that once the number hits $16.4 trillion, we are heading off the fiscal cliff.

There have been debates back and forth between the republican and democrat parties in regards to what the best and easiest way to fix the solution is. The democrats believe that the best way is to raise taxes on the upper class while also making a few cuts. The republicans operate more under the mindset that cuts should be made, then the tax brackets can be examined.

President Obama claims he is completely against ending the Bush-era tax cuts for the middle class, but he is planning on jacking up the rates for the richest class in America. He also says that he plans to make a few cuts, but the full details on what this will include have not been officially released, which makes it hard to speculate.

Under Obama’s plan, he estimates that the amount of new tax revenue gained from increasing the highest tax bracket will be about $1.6 trillion over 10-years’s time, so this would work towards getting us out of debt in approximately 100 years. However, he also believes that he will generate another $60 billion per year by cutting back spending on certain programs.

To break it down even further, reports say that Obama plans to take every $1 in new revenue and make $2.50 in cuts to match. This sounds like a good theory, but we have yet to see where he plans to cut spending, and how people within this industry will be affected. Obviously, you can only make so many cuts in so many different places until you end up having just that many more people listed as unemployed.

Bobby Simmons is a political news reporter and has a vast experience in covering politics. He has received recognition at high level news media and has joined Maboot.com to provide the same.

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One Response to “Obama’s Plan to Avoid Fiscal Cliff”

  1. Doc says:

    I personally think that Obama is talking a lot of BS. Why should someone believe his plan when there is no plan. First, stop the loopholes for the big corporations and tax them as they should be. i.e. Apple who pays almost no taxes in USA. Secondly, tax the rich at a level which is in proportion to their wealth. Thirdly, get rid of the entitlements that are give aways. So many people get everything free instead of working for it when in fact they are quite able to work. If they aren’t productive, then they don’t pay taxes which is bad. Forthly, the unemployment benefits are fine, but too much is too much. People will not look a job as long as they can collect. This isn’t true of all people, but I have known a number that collected for the full allotted time and then got a job the next morning. Fifthly, Politicians, lets cut your total budget of your office by 20%. You are asking some to give up things so show us good faith and you give up something for a change. Sixthly, quit giving money away through pork barrel when the expenditures are not needed. There are way too many things done that are totally unnecessary but you politicians still give the money away. Seventhly, deal with immigration. Send the home or give them full citizenship and make each and every one of them pay taxes, etc. and stop using up the medical and welfare services at the governments expense. Eightly, Balance the budget-stop all the giveaways and spend on what is needed and only on what is needed.
    When things are tight at my home, I tighten up. It is time the Federal government tighten up and clean house and do away with what isn’t needed. Easy to say and can be done, but will never be because each party wants to claim the credit if the result is good, but they don’t want to work together. Who gives a crap who fixes what as long as it gets fixed. Stop with the ego trips. I cannot afford it anymore.

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