Financial cliff

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AlyssaEimers's picture
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Financial cliff

Most in US Won't Be Able to Escape 'Fiscal Cliff' - ABC News

Do you think congress and the White House will be able to reach some sort of compromise and deal with this situation to prevent this from happening.

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I do think they will reach a compromise before years end.

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I hope so. I think the backlash for both the republicans and Obama will be terrible if they don't find a way to compromise.

I do worry though.

AlyssaEimers's picture
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What about now? Do you still think a compromise will be reached in time?

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As long as everyone keeps talking to work on something I'll remain hopeful.

I will admit that if anything new happened today I was in office all day and I have not watched nor read any news.

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Both sides see vastly different solutions to the same problem... with each believing that the "other side" is so incredibly wrong that they will plunge the world (or at least the U.S.) into darkness. (Anyone else watching "Revolution" btw? LOL) I believe that the balance current *is* so precarious with teetering on a real recession that we *can't* bail out, that each recognizes if they choose wrong, that is a very real threat.

That said, like Kim, I do believe that there will be some sort of compromise before year's end. My personal bet is they will choose to 'punt' it at this point... meaning that they will extend the status quo for now and set a new 'deadline' in March. That "solution" however makes for even more uncertainty for everyone from businesses, in the stock market, and all of us trying to make the best financial planning we can for our families. :roll:

One thing that I wish could be done (not just this time but going forward!) that any new tax implications (for individuals and businesses) would not be thrust on us in January/early February impacting our tax filings for the past year! There is no way to try and figure out how much you should have withheld (without overpaying) or how much you had available to donate... or what you could do to lessen the financial burden for your family... and I gather that is exactly why they do it. Unfortunately, the negative impact tends to hit those hardest that can least afford it. If they change the tax codes in January those should impact that CURRENT year. (mho that is open to being changed. HA!)

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Obama obviously has no interest in a real solution. So I'm not very hopeful.

Mr. Geithner, acting as the president’s missionary, proposed extending the payroll tax cut (something both parties earlier opposed), $1.6 trillion in tax hikes – way beyond previous demands -- extension of unemployment benefits that already exceed any previous coverage – and also a “permanent” ability to raise the debt ceiling, independent of Congress. There was no significant effort to rein in our bloated spending.

The president is also demanding a new $50 billion stimulus program – a request that threatens to remind voters of just why it was they gave Republicans control of the House after Mr. Obama’s first two years in office.

Read more: Why Obama could lose this round as fiscal crisis grows | Fox News

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Anyone still think this will be resolved? Obama has made absolutely no effort to try and solve the problem which is exactly what I expected.

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I'm okay with them not reaching a compromise, though it won't be great for us financially. I like the way that this article explains it.

On the Fiscal Cliff, Republican Rebels are Right: No Deal is Better Than a Bad Deal - Forbes

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"MissyJ" wrote:

Both sides see vastly different solutions to the same problem... with each believing that the "other side" is so incredibly wrong that they will plunge the world (or at least the U.S.) into darkness. (Anyone else watching "Revolution" btw? LOL) I believe that the balance current *is* so precarious with teetering on a real recession that we *can't* bail out, that each recognizes if they choose wrong, that is a very real threat.

That said, like Kim, I do believe that there will be some sort of compromise before year's end. My personal bet is they will choose to 'punt' it at this point... meaning that they will extend the status quo for now and set a new 'deadline' in March. That "solution" however makes for even more uncertainty for everyone from businesses, in the stock market, and all of us trying to make the best financial planning we can for our families. :roll:

One thing that I wish could be done (not just this time but going forward!) that any new tax implications (for individuals and businesses) would not be thrust on us in January/early February impacting our tax filings for the past year! There is no way to try and figure out how much you should have withheld (without overpaying) or how much you had available to donate... or what you could do to lessen the financial burden for your family... and I gather that is exactly why they do it. Unfortunately, the negative impact tends to hit those hardest that can least afford it. If they change the tax codes in January those should impact that CURRENT year. (mho that is open to being changed. HA!)

The seemingly "retroactive" taxes is what freaks me out. I need to itemize my medical this year and wll be getting a chunk back, almost enough to pay off the rest of the medical bills. I am worried that I wouldn't be able to take those deductions.. It is scary.

AlyssaEimers's picture
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Where are we all on this? Do you think a deal will be reached? If not, what do you think the fall out will be?

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"AlyssaEimers" wrote:

Where are we all on this? Do you think a deal will be reached? If not, what do you think the fall out will be?

Not by the end of the year. At best they might pass something in Jan and make it retroactive.

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There is a report on msn that a deal has been made.

Update: White House, GOP reach a deal on the 'fiscal cliff'