As Americans tiptoe closer to the fiscal cliff, more are growing concerned about the impact going over the cliff – if Democrats and Republicans fail to reach an agreement or take action to prevent all or some of a batch of tax increases and spending cuts set to take effect on Jan. 1 – would have on the economy and their wallets.
State Comptroller Thomas DiNapoli said today that New Yorkers could see more than $43 billion in tax hikes, including federal and payroll taxes, and the loss of more than $609 in federal aid next year if a deal isn’t reached. (Read Tax Watch’s coverage here).
So why aren’t Democrats and Republicans rushing to avoid the cliff? That comes down to continued political wrangling. In broad terms, Republicans want to keep tax cuts for all taxpayers, regardless of income, and they’re seeking greater spending cuts. President Barack Obama and the Democrats, on the other hand, want to continue tax cuts for everyone except those individuals earning more than $200,000 ($250,000 for married couples). There are many other factors at play but so far no compromise is in sight.
So what do you see as the solution? Which side do you favor? Provide your answer in the poll below and discuss your thoughts in the comments.