“Fiscal Cliff” Talks Seem To Be Progressing

“Fiscal Cliff” Talks Seem To Be Progressing

With the “fiscal cliff” just around the corner, talks between the House Speaker and Ohio representative John Boehner and president Barack Obama seem to be moving along after weeks of stagnation.

In an effort to move things along, Boehner offered to delay any fight over the debt limit by a year, a compromise that might hurt the Republicans in the long run with the budget talks but would improve the “fiscal cliff” negation problem.

The concession was proposed last Friday according to people involved in the talks, and comes as a measure to strike an understanding with president Obama to replace about $500 billion in deficit reduction measures that would have to start in January as the tax breaks put in effect in the Bush administration expire.

With the national debt around $16 trillion dollars last year republicans will argue that spending cuts are absolutely necessary. Boehner’s offer somehow implies that any increase in the debt limit will have to be matched with significant cuts, especially in social programs.

This would allow Boehner to keep his vow with his party and maintain the fragile progress needed to address to impending “fiscal cliff” issue.While sources suggest that the White House will refuse the offer, on the grounds of not saving enough money, but the offer in itself is seen as a breakthrough in the “fiscal cliff” problem.

Posted by James Fried on Tuesday December 18 2012, 2:48 AM EDT. Ref: Washington Post. Link. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0