"The ability of the U.S. to be competitive in the global market and support high and rising living standards for their U.S. employees will be severely eroded. Furthermore if we don’t change course, we will reach a point — estimated by the nonpartisan Committee for a Responsible Federal Budget to be in 2031 — where the cost of mandatory spending on entitlement programs such as Medicare and Social Security and interest on the national debt will consume all available federal revenue. Under this scenario, there will be no money for critical investments in the future such as education and R&D and no money for other day-to-day functions of government that we take for granted — such as national security. That would be a disaster..."
Dan Coats shows courage in working to fix the debt (Indianapolis Star)
Last night, the Senate voted on and approved a package to avert most components of the fiscal cliff. Our partner organization, The Committee for a Responsible Federal Budget undertook a preliminary review of last night. Today, there are many more details to review now that the legislation is available and JCT has estimated the revenue effects.
The House of Representatives is voting today on what they call “Plan B” – legislation to renew the tax cuts for incomes below $1 million. They will also vote on a bill to replace the sequester with other spending cuts similar to legislation passed earlier this year.
Fiscal Cliff negotiations between President Obama and House Speaker Boehner have progressed over the last few days, to the point that National Journal says they are not very far apart on numbers for a deal.