Stepping Away From That Cliff

Dear Madame L,

Let's say even if it's true what you wrote about how all Congress has to do is pass a law early next year making the tax breaks retroactive, so the so-called "fiscal cliff" isn't a problem after all: 

So, even if that's true, I read somewhere that if Congress does let the economy go over the fiscal cliff, then we will still have all kinds of problems because of people getting discouraged, losing their jobs, and all that, kind of like what led us into the financial mess we're just starting to recover from.

What do you have to say about that?

Sincerely,

Seriously Disillusioned 

Dear Disillusioned,

Madame L agrees with that idea you've read, not because she's such an expert on these things, but because she has also been reading the same kinds of gloomy forecasts.

For example, the website boston.com writes that unless Congress can agree with the President by the end of 2012, "tax rates will increase [even if only temporarily] for everyone" and "budget cuts that are set to be implemented if no action is taken" will force government agencies to fire or lay off staff. 

This article concludes that "...Although both measures would reduce the nation’s deficit, such a confluence of events would threaten to tip an already-soft economy into a recession."

Pres. Obama announced yesterday (Nov. 28) several initiatives to urge people to let their members of Congress know how they feel about their intransigence on these budget issues. 

“If there’s one thing that I’ve learned, when the American people speak loudly enough, lo and behold, Congress listens,” Obama said. “My hope is to get this done before Christmas. But the place where we already have in theory at least complete agreement right now is on middle-class taxes.’’

Obama's budget office figures that if the current tax rates remain for the great majority of Americans, those earning less than $250,000 per year, while rates increase on those earning more, the budget problem will be solved.

Republican members of Congress, though, are still sticking to their old party line.

If you would like to let your Senators and Representative know how you feel, you should post your message on their Facebook page, send them a tweet, and/or send an email or snail-mail message to their offices.

Look just above and to your right on this page for the box called "Contacting Congress" for information on how to get your message across.

Best wishes,

Madame L