No agreement reached; consumers brace for fiscal cliff

“I believe that the President wants to raise the taxes of everyone in this country,” declares Republican Senator Jim DeMint. DeMint is one of the members of the House who strongly opposes the bill that imposes an increase in tax collection from the 2% of the richest population in the country. The bill is in line with the guidelines of the fiscal cliff that is set to take effect midnight of January 1, 2013. The fiscal cliff is supposed to help the US economy by increasing tax collection while cutting on government spending.

Republicans Will Fold on the Issue

The Republicans, composed of the elite in the American society, have vehemently expressed opposition on the intent to raise taxes on the wealthy. According to the Obama administration, the wealthy is described as the households who earn not less than $250,000 a year.

House Speaker John Boehner says that although the president has promised a balance approach, his actions speak otherwise. Boehner adds that he believes the president wants more tax hikes than he would be willing to do spending cuts. Hence, Boehner says that instead of solving the issue of US debt, the president will only create new stimulus to raise the debt. And to Boehner, this will happen without any reforms or cuts.

But Harry Reid, the Democratic leader in the Senate, says that the country’s main problem is the Republicans. This is because despite of all the talk, there hasn’t been any commitment that they would support the tax increase.

However, the latest poll taken by Pew shows that 55% of those surveyed say that Obama is seriously making an effort to work with Republicans to resolve the deficit in the US economy. Meanwhile, 32% feel that the rich shouldn’t pay more taxes than the rest of the population.

The disagreement in the House be resolved soon because the fiscal cliff will be made effective in two weeks. Democratic House Leader Nancy Pelosi reminds that if a deal is not reached soon, then there will no longer be any chance of securing the proper legislations.

New Poll Shows Who to Blame

If the fiscal cliff fails, NBC poll shows who the public will blame. According to the 24% of those who have participated, they will blame the congressional Republicans. 19%, on the other hand, will blame Obama and the congressional Democrats. But a 55% of the respondents say that they will blame both sides equally if no agreement is reached that will benefit the US economy.

Further, a separate survey has it that 38% of Americans believe that the president can handle the fiscal situation while 19% put their trust on the congressional Republicans and House Speaker John Boehner.
Meanwhile, as the leaders of the state continue to battle on the legislations to soften the blow of the fiscal cliff, ordinary consumers are doing everything they can to save. This entails not spending too much on Christmas and paying for their bad credit loans as early as possible. The tax increase could affect banks, their operations, and their interest rate but it is still not sure how it would affect online companies offering bad credit loans.