Obama's Budget Said to Seek Tax Increases, Entitlement Cuts
Obama administration officials suggest that the president's 2014 budget proposal, due Wednesday, will feature concrete tax proposals and propose cuts to entitlement spending.
Obama administration officials suggest that the president's 2014 budget proposal, due Wednesday, will feature concrete tax proposals and propose cuts to entitlement spending.
Legislators show no signs they're heading toward compromise in resolving the nation's next financial crisis, with Democrats talking about further taxes hikes on the rich, and Republicans saying a crippling default on U.S. debt is possible unless they get significant cuts in government spending.
After months of lead-up, America finally went over the fiscal cliff -- for about 34 hours, before a bipartisan compromise was reached. So, with an eye toward the bright side, here's are six things that you no longer need to worry about now that the fiscal cliff has been averted.
The Senate passed legislation early New Year's Day to neutralize a fiscal cliff combination of tax increases and spending cuts that kicked in at midnight. The pre-dawn 89-to-8 vote set the stage for a final showdown in the House, where a vote was expected later Tuesday or perhaps Wednesday.
Working against a midnight deadline, negotiators for the White House and congressional Republicans in Congress narrowed their differences Monday on legislation to avert across-the-board tax increases.
Even if New Year's passes with no deficit reduction deal, businesses and consumers would not likely panic as long as some agreement seems imminent. The $671 billion in tax increases and spending cuts could be retroactively repealed, and the impact of the tax increases would be felt only gradually.
U.S. companies increased their orders for long-lasting manufactured goods in November, with a second consecutive monthly gain in a key category that reflects businesses' investment plans.
Despite an intensifying pace, little progress is being reported in talks on averting automatic spending cuts and tax increases that economists fear could send the U.S. economy off a "fiscal cliff."
If meeting with your financial advisor is on your December "to-do" list -- and it should be -- here are a half dozen things you should do to prepare that will help you get the most out of the meeting.
With a nervous eye on the "fiscal cliff," the Federal Reserve is expected this week to announce a new bond-buying plan intended to further reduce long-term interest rates and encourage borrowing. If it succeeds, it might soften the blow from tax increases and spending cuts that will kick in in January if Congress can't reach a budget deal.
When the Aerospace Industries Association held its big annual gathering this week, the talk wasn't about America's superior aircraft and spacecraft. The subjects that dominated the event were the fiscal cliff, sequestration, and the potential damage that automatic spending cuts could do.
Deep divisions among Senate Democrats over whether cuts to Medicare and Medicaid should be part of a plan to slow the growth of the federal debt pose a big obstacle to a deal for avoiding a potentially economy-crushing "fiscal cliff," even if Republicans agree to raise taxes.
President Barack Obama plans to make a public case this week for his strategy for dealing with the looming fiscal cliff, traveling to the Philadelphia suburbs Friday as he pressures Republicans to allow tax increases on the wealthy while extending tax cuts for families earning $250,000 or less.
White House economists warned Monday that the uncertainty of a potential hike in taxes next year for middle class taxpayers under the looming fiscal cliff could hurt consumer confidence during the crucial holiday shopping season.













