The United States Congress is rapidly running out of time to avoid falling off of the horrific “fiscal cliff”. It is almost universally understood by all that automatic tax increases and spending cuts which will occur without action will result in certain economic catastrophe for the country. And economic experts say that the only way to survive is by forging a deal to increase taxes and cut spending.
The fiscal cliff of forced cuts and tax increases worth more than $500 billion was created by the gridlock surrounding the Budget Control Act of 2011 and the fight to raise the debt ceiling. Republicans had refused to raise the debt ceiling which would allow the country to pay off money already spent by the country and felt that paying our bills would set a bad precedent for the future.
So lawmakers are hurrying to come to an agreement to raise taxes and cut spending to avoid certain disaster. If that does not occur, automatic tax increases and spending cuts will surely destroy the country.