'Fiscal Cliff' Battle Brewing
The president campaigned on taking down the nations' debt with a balanced approach, which includes raising taxes on the upper class. Friday he called on both parties to avoid going over the fiscal cliff, which includes a tax increase for everyone if Video by nbc26.comvideo
President Barack Obama campaigned on taking down the nations' debt with a balanced approach, which includes raising taxes on the upper class. Friday he called on both parties to avoid going over the fiscal cliff, which includes a tax increase for everyone if nothing is done.
The president says the American people expect him to solve the looming fiscal cliff.
"I intend to deliver for them and I expect to find wiling partners in both parties to make it happen," the president said.
On January 1st, the fiscal cliff causes tax increases for everyone while requiring the federal government to drastically cut spending.
Certified financial planner Larry Lindsley says the market is uncertain.
"When they are fearful or the future is unknown they tend to hunker down a little bit and looking for more safety in their investments,” Lindsley said.
Lawrence University economics professor Marty Finker says the government needs a long term solution on taxes to really boost the economy.
"Provide some certainty about the nature of what policy is going to be over the next 4 or 5 years,” Finkler said.
The negotiations will continue as House Speaker Rep. John Boehner and others come up with a tax plan to avoid the fiscal cliff and spinning deeper into recession.
The president says he is willing to compromise on his plan..and to get the ball rolling he's invited leaders of both parties of congress to the White House early next week to discuss the tax plan.