Did not seem to rob to stop traders warned that fall off the end of the year "fiscal cliff" will be disastrous. Why they don't panic?
For one thing, on December 31 deadline is more agile than it sounds. Like all skilled procrastinator, children put homework to file the middle tax payers, Washington's negotiator know that if they need it, they can deceive more time.
This does not mean that will delay cost. The stock market may tank, if there is no deal in 2013 New Year bell ring. However, americans can temporarily survived many other adverse effects, the past their deadline, if congress and the President Obama's strike.
Obama government will have the right to put off some tax increases and spending cuts, will start in January formally went into effect. Then, if earlier this year in the agreement, it can trace applicable wipe them out.
Some congressmen even think, briefly cliff forced compromise is the best way. Obama government said Wednesday that it spent a lot of money, if it is necessary to ensure that the rich pay higher rate.
Push too far in the deadline is a risky strategy, but. The congressional budget office forecast financial cliff policy, if allowed to its development, may lead to economic recession in 2013 and send the unemployment rate in more than 9% of the decline.
Long negotiations at snacks, and then will the United States economy is in danger? Calendar become less and less, ZhouTong tolerance.
Drag disease patients. Push the deadline:
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December
President barack Obama and republican leaders in the house of representatives speaker John boehner said, democratic leaders this month to reach an agreement, the key to it. However, both sides seem to dig through tax. And their two plans how far away from each other to cut spending, and the economy is still in a recession last year to recover.
So far, boehner said. "we're nowhere."
If it is easy to compromise in this group of people, they won't be in this predicament. A large fiscal cliff, known as "sealed" - automatic cut costs - is by the United States congress to create a human time, hoping to force yourself out of deficit reduction plan. The arrival of it as the expiration George w. bush era of income tax and other temporary preferential tax plans to end, unless congress to extend their at the same time. Plus tax and cut is close to $70 billion deficit reduction of more than 2013 years.
Congress can vote, cover it all, basically frozen where they are, and now that the economy can cure tax and spending. However, Obama and congress, especially on the republican budget cuts, fiscal cliff overcome inertia to the national long-term debt crisis.
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January
If there is no 12 months of trading, the economy will not off the cliff on New Year's day. But it could start bumpy downhill drive.
On January 3,, held the new congress won't appear too big different, now the stalemate, from a divided into republican control of the house of representatives and the senate Democrats leading. But lawmakers will feel more heat.
Higher taxes, almost everyone and the board cut costs has become law.
Moody's analysis chief economist Mark praise di (Mark Zandi) said, "people will day by day more nervous,". However, he thought, economic uncertainty to spend a few weeks of negotiations appeared as long as the efforts of the agreement.
If the bush era's tax cuts expire, it will improve the middle class family average income tax 2200 yuan, in 2013 in the process, the White House says. Economists say, this is 42 yuan a week, may not have enough to cut spending and handle economic direct hit.
In addition, the tax payers may never to advance together. The ministry of finance will withhold table, to determine how many americans pay tax out. It can accommodate increased withholding tax, Roberton Williams said, if the trade seems to be in the works of private tax policy center senior researcher.
Republicans and Democrats say, they don't want the middle class tax payers pay higher rate. They don't agree to whether let rate rise, the personal income of more than $200000, as Mr Obama hope.
Other profound tax changes are likely in early January. For instance, although Obama proposed extended temporary social security payroll tax cut, always support the weak. Therefore, more money may start to come out of the salaries of the workers, regardless of whether the financial cliff trading. This is a $1000 a year, a little more than a week of 19 yuan, workers $50000.
Storage, can be directly in the White House, the pentagon and federal agencies will be their resources, a period of time the husband and some cut costs, and delay the negotiations continue.
"The more a look forward to work, is actually a agreement, less influence, it should have," said Chad stone for liberal budget and policy priority center's chief economist. He thinks, it is OK to miss financial cliff deadline, if you want to achieve a careful design of the agreement.
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February
May eventually get what protracted move, if no other? The fear of debt default, the United States for the first time.
Unless congress behavior, the government is expected to play at the end of December, the legitimate loan limit of $16.39 trillion. The ministry of finance of the drill should first a default for a couple months, until the end of February or early march, private economists said.
Congress can at any time anywhere now increases the debt ceiling, if congress agreed to before, solve financial cliff. But, are discussing more tax and spending part of the program. The White House says, improve the debt limit must be included in the deal, boehner said, the republican party through spending cuts to match any increase government borrowing.
Remember the debt ceiling last showdown? The government only one step away to the default in August 2011 reached a compromise before. Financial market up. Standard &poor's a reduction in the country's credit rating.
Once again came to the edge of the breach of contract - economic crisis, investors panic over fiscal cliff - possibly to market slump, finally moved the congress, too.




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