The possibility of avoiding a fiscal abyss United States increasingly thin. Just a few hours ahead of the deadline, the two camps in Congress still insist in a fringe opinion. Of course, this situation gives a sense of pessimistic the U.S. Government was able to get a solution.
CNN Money reported, Congress likely will get a tolerance within a few weeks after the new year in deciding policy. However, it does not guarantee that the decision will be reached.
In other words, tax policy and budget uncertainties still afflicted at the United States. The effects, taxpayers, doctors, civil servants, domestic workers and many other professions were to find the smaller salary due to high taxes.
On the other side, the policy never completed can be promoted to the United States economy. Many experts predict the second economic recess that could not be denied again. CBO forecast predicts a decrease in gross income of as much as 0.5 percent in gross domestic income and the rising jobless rate to 9.1 percent in 2013.
In this case, it is likely that Congress would encourage Americans to fall into the abyss to avoid fiscal the increase some taxes. For example, the U.S. legislative aja just decided no action while deciding the ultimate outcome of budget cuts or a rise in State debt platform. In such cases, the United States economy will drop into the second semester.
So, what happens if a decision is not reached at the turn of the year? Site News The Globe and Mail wrote, the very fiscal disaster might occur, for example, tax increases worth US $ 560 billion worth of budget cuts and US $ 110 billion. However, if the only deadline is missed, the effect will not be so fast. Law-makers could still work out the policy in a couple of weeks after the new year.
Who feared it was a delay in the stock exchange and the country’s economic strength. The broker may become worried and reduce their spending in bursa. And if that happens, the value of stocks around the world were to fall on Friday after the announcement of a fiscal abyss.
The fear of more to come if a decision cannot be reached. If negotiations fail, predicted the tax would rise to US $ 2,400 per family with revenues of US $ 50K – US $ 75K per year.
At the same time, U.S. citizens will also feel the impact of the drop in public service budgets. Some civil servants could be threatened layoffs and the company would not get a government project. The Globe and Mal wrote, the country could have unemployment rates of up 3.4 million inhabitants. The consequences will be felt by everyone, said Federal Reserve chief Ben Bernanke.
However, Obama does not want to give up on the matter. He accidentally sent the U.S. vice president Joe Biden to mediate the issue at the congress. It was at the request of the Chair of the Senate Republican Mitch McConnell, the site.
As reported earlier, the two sides still have not agreed on the details of economic policy. For example, the type of rich families get tax hike. Democratic Party adamant that the family income of US $ 250K per year should get a bigger tax. While Republican feel these limits are too high and chose US $ 400K per family per year as a limitation.