In a move to resolve the ‘Fiscal Cliff’ standoff, the White House and Congressional Republicans have come closer to find a way out. President Obama has taken it very seriously to ensure higher tax revenues amounting to $1.2 trillion. Obama also wants to see increased tax rates on those earning over $400,000 a year.
However, Obama agrees to $1.22 trillion in spending deductions and allowing Business cash advance to small business owners. Also, adjustments to cost of living and in social security retirement benefits shall help to accommodate some spending cuts. Both Republicans and White House are seeing this as a good attempt as the plan meets half way on spending and halfway on revenue earnings.
There is also a pending demand of Congress to increase the ‘National Borrowing Ceiling’ by two years. The ceiling will be raised in accordance to a Parliamentary procedure of the Senate. Tremendous effort is being made from the end of Speaker John Boehner and the President to sort out differences and curb automatic tax increases and spending cuts from being enforced next year. Every step has to be taken with precaution as one single mistake can put the economy back into recession again.
The step of Social Security benefit offers to increase the chained consumer price index and so it is going to lead to lower payments. It is this proposal of the President that would protect all those people on whom the ‘Fiscal Cliff’ would be a hard hit. Moreover, the proposals made by the President are going to boost the economy, improve on employment benefits, and thumb on infrastructure spending.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to email@example.com