The “fiscal cliff,” so to speak, is fast approaching and if it is not addressed by Congress and the President, the state of the nation could take a steep slide.
Come Jan. 1, unless they take action, all income tax rates will go up which could cause a slowdown in the economic vibrancy of the nation. And who knows how deep it will get and how long it will last.
Our salvation rests with Congress to pass the necessary legislation that will keep the country stable. That could be adopting temporary measures that can get by for the time being and then considering permanent solutions in providing a healthy economy for our nation.
The liberals want to raise taxes on the rich and keep those on the middle class as they are. The conservatives want to reform our income tax system by reducing tax loopholes of which there are many.
But so far, the two sides do not appear to be in a compromising mood. But the end is near and they have to change.
Our tax code could certainly be improved by tightening up on those loopholes and providing more revenues without raising taxes on anyone. Keeping tax rates low on the wealthy as well as the middle class should spur the economy to make increases unnecessary.
Liberals, however, claim reducing the loopholes would not produce enough additional revenue to meet the upcoming budgets. Conservatives believe that government at present is too big and expensive and can be cut down, allowing citizens more freedom to live as they please without government intervention. This could significantly stir up the economy for everyone’s benefit.
Hopefully, the Democrats and Republicans will realize that successful democracy is based on using compromise at times to iron out differences and, on occasion, to adopt temporary measures that allow more time to make things right.
And from there, they can adopt programs that serve the people.
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