Business leaders are pressing Congress for action, and the White House
summoned ordinary Americans as Washington heads toward steep automatic
tax hikes and spending cuts. Democrats and Republicans have failed for
the past year to prevent this so-called fiscal cliff from going into
effect January 1. Members of the business community were on Capitol Hill
to deliver a stern message: reach a deal to reduce the federal deficit
now, or face ugly economic consequences next year.
“Politics has to go aside. That is what we are telling them,” . National
Small Business Association Chairman Chris Holman told reporters.
Inaction on the debt will be costly, according to insurance executive
Mark Bertolini.
“We are 802 hours away from having a big problem that will send the
economy into recession and put people out of work. And we do not want to
see that happen,” he said.
By contrast, a deficit-reduction pact would boost economic confidence.
“Investment hates uncertainty. And as soon as that is resolved, you will
see the economy begin to kick [expand] again,” Holman said.
But Washington’s partisan stand-off on deficit reduction remains.
Republicans warn of job losses if tax hikes on the wealthy favored by
Democrats go into effect.
"The proposal the president has put forward to solve the fiscal cliff
raises taxes on almost a million small businesses who employ 25 percent
of the workforce," noted Senator John Thune.
Democrats argue federal spending cuts advocated by Republicans will
disproportionately harm the poor and the middle class.
"I will not sign onto a deal that throws the burden of deficit reduction
right onto the backs of families and communities that have already
sacrificed so much," warned Senator Patty Murray.
If no deal is struck, massive tax hikes and devastating spending cuts
that neither political party wants - the so-called “fiscal cliff” - will
take effect in less than five weeks.
“We do not have a lot of time here,” warned President Barack Obama.
He says a typical family would have to pay more than $2000 in new taxes
next year.
“That means less money for buying groceries, less money for filling
prescriptions, less money for buying diapers,” Obama said.
The
president brought a group of middle-class Americans to the White House
to demand action on his proposals. But the president’s public outreach
is drawing criticism from the Senate’s top Republican, Mitch McConnell.
“Rather than sitting down with lawmakers of both parties and working out
an agreement, he [Obama] is back on the campaign trial, presumably with
the same old talking points that we are all quite familiar with,”
McConnell said.
But Americans are speaking out, including small business owner Cookie
Driscoll, who says the United States is drowning in debt.
“It is a house of cards that is slowly coming down,” Driscoll said.
President Obama met with congressional leaders for initial debt
consultations two weeks ago. Since then, no face-to-face meetings have
been held.
