Fiscal crunch time
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The U.S. Senate has already passed a bill that would have raised tax rates for those who make above a certain amount. The first $250,000 or whatever the threshold amount would be taxed at the lower rate. The amount over $250,000 a year would be taxed at the higher rate. This bill was passed long before the election. All the House has to do to avoid the "fiscal cliff" is pass this bill.
The fiscal cliff, a combination of tax hikes and across-the-board spending cuts, would take too much money out of the economy, causing a recession or worse.
We must avoid the fiscal cliff. But that will not solve the problem (the deficit). It merely postpones the day of our fiscal reckoning.
Any money saved from this bill should be put to pay off the debt.
SIMON P. SOLAR
First Published December 28, 2012 12:00 am