Get ready for the latest buzzword: Fiscal cliff.
That’s a reference to the automatic $400 billion in higher taxes and $100 billion in automatic cuts in both military and domestic programs. They will kick in automatically on Jan. 1 if no deal is struck in Washington.
That’s why every one is talking about it. It will be Job 1 for President Obama and Congress as they get back to work.
The problem has been that the president is insisting on higher taxes on the wealthy, something Republicans are dead set against.
The question now is does the president have enough political capital in his pocket fresh off his big election win to get his way. Both sides are saying they are ready to sit down and hammer out a solution.
We’ll see if they can actually get it done.
We editorialize about it here.
Just how important is it? Most economists believe the country likely would slide back into recession if the automatic cuts go through.
Maybe that dire warning will break the logjam in D.C. We have our doubts, but we’re hoping for the best.
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