CBS 11 Header TXA 21 Header MeTV Header KRLD Header The Fan Header

Politics

‘Fiscal Cliff’ Averted — Now What?

by Stephanie Condon

Get Breaking News First

Receive News, Politics, and Entertainment Headlines Each Morning.
Sign Up

From Our CBS Music Web Sites

kluvs super 70s weekend voting 1979 dl Fiscal Cliff Averted    Now What?Pick The Best Song From 1979

115245513 8 Fiscal Cliff Averted    Now What?Crush Of The Day: Mila Kunis

80219448 Fiscal Cliff Averted    Now What?Viral Video: Hilarious Southwest Safety Announcement

155742164 Fiscal Cliff Averted    Now What?Pick Your Favorite Victoria Secret Model

Featured Items

Fantasy_tileHottest Olympians

pet_tileYour Pet Photos

weather_tileSend Us Your Weather Photos

CBS NEWS - Congress didn’t completely fall off the “fiscal cliff,” but they’re still hanging onto the edge.

By waiting until the last minute to scrape together a limited bill (which extends the Bush-era tax rates for most Americans and extends long-term unemployment insurance, among other things), Congress sidelined some major fiscal issues they initially sought to resolve before the new year.

Leaders in Washington deferred for two months the $1.2 trillion in across-the-board spending cuts (known as “sequestration”) set to hit the Pentagon and domestic programs this week. Additionally, the bill passed this week failed to raise the debt ceiling, even though the Treasury technically hit the $16.4 trillion limit Monday. Both of these issues will come to a head just as Congress is expected to vote on a new federal budget. The convergence of these issues practically guarantees that within a matter of weeks, Washington will once again find itself embroiled in another fiscal crisis.

Lawmakers on both sides of the aisle in recent days have decried the state of uncertainty that’s lingered over Washington for months: “We all know uncertainty is the enemy of prosperity,” Rep. David Dreier, R-Calif., said on the House floor Tuesday evening. Congress this week did manage to erase fears that the middle class would face an income tax increase. Still, the next “fiscal cliff” not only keeps the threat of a government shutdown on the horizon, but it is also sure to revive seemingly intractable fights over government spending and programs like Social Security and Medicare.

In remarks Tuesday night, President Obama said Washington should strive to address these remaining fiscal issues “with a little bit less drama, a little less brinksmanship, [so as to] not scare the heck out of folks quite as much.”

READ MORE AT CBSNEWS.COM

Also Check Out: