Congressman Ron Paul asserts that the hoopla over the ‘fiscal cliff’ is just that and nothing more.
Bob Adelmann from the New American quotes Mr. Paul:
“The hysteria surrounding the January 1 deadline for the Budget Control Act’s spending cuts and expiration of the Bush tax cuts seems all too familiar. Even the language is predictably hysterical: if government reduces planned spending increases by even a tiny amount, the economy will go over a “fiscal cliff.” This is nonsense.”
Whether or not the fraught contest is, as he calls it, “another congressionally-manufactured crisis which will likely end in yet another 11th hour compromise,” matters in D.C. are getting serious.
In a quick exchange over the past few weeks, House Speaker Boehner countered an earlier Presidential plan with one put forward by the Republicans.
This one would feature changes to Medicare, Medicaid, federal employee compensation, and the food stamp program. The plan, he says, would save $800 billion per year, while much-needed new revenues would be generated by revisions to the tax code and an end to loopholes that would allow lowered tax rates.
This plan, of course, was dismissed by the White House. In all likelihood, a minor deal will be reached by year-end, allowing Congress to take up the real battles next year but averting the noisome fiscal cliff and expected economic collapse.
And this is exactly what Paul predicts, stating that we’re going to see some kind of “compromise” at the tail end of 2012. This deal, he says, will see both sides make faux compromises while ensuring their own ends are met.