In the controversial "fiscal cliff", it is easy to forget, the origin of the debate is a self-proclaimed desire, to reduce the swelling of the federal deficit.
Whatever goal is more than ten years of $four trillion bowers Simpson deficit reduction committee's advice, or of the $two trillion range, such as throw around the house representatives speaker John boehner and President Obama, the idea is to control the total debt, now exceed $16 trillion.
According to these standards, the United States senate passed the bill as early as New Year's day, in order to avoid to be automatic steep cliff add tax and overall board cut costs, it seems trivial.
Legislation, this Tuesday night still do not have to by the house of representatives, will increase nearly $4 trillion in federal deficit of more than ten years of debt reduction of extreme cases, according to the idea of a cliff compared the nonpartisan congressional budget office.
This is mainly because it expanded almost every American low income tax rate more than $400000 to the threshold of the house, in addition to relatively small.
This is also because it off at least two months of automatic budget cut part of the cliff, there will be may save about $10.9 billion in federal spending defense and the national defense project.
The senate bill, and finally came to combat the tax fair, not the federal spending, cut the deficit, Obama and congressional leaders have been promising resist: "to play on the road", the following day.
In the measures, the news media, the White House, contributed to it, there is no specific Numbers, will bring much deficit reduction, only that, somehow, "economic strengthen," this will.
Whatever final success will depend on what happens in a certain extent now delay "automatic" cut costs, including whether Obama by reducing spending.
All round
The senate bill would also set up what is likely to be more fierce fighting in late February, the us Treasury to congress must be sought to increase the government's borrowing limit.
This will bring everything is full of ring to cliff originated in the yuan of above $145 trillion federal debt limit increase, barack Obama and republican struggle between.
This struggle by August 2011, a bipartisan agreement to scare FaXian congress made the long-term cuts in federal spending.
The idea is, by setting up a strict deadline is on January 2, 2013 and terrible consequences, do not accord with its tough spending cuts in the form of the White House and congress will be forced to take action.
A describe themselves as the deficit hawks republican vice presidential candidate, republican Congressman Paul Ryan, announced that moment "great cultural revolution".
Coincidentally, low rate origin President George w. bush presidency, also on December 31,, due to the prospect of action, threatened, the congressional budget office decided, no intervention, could lead to new economic recession.
But the tax of debate and around Obama needs, middle-class tax cuts and fair presidential election high-heeled shoes, final consumption that cliff, leave deficit reduction as a forgotten problem.
The process and despair of the Alice tiefling, Brookings Institution (Brookings Institution) scholars, former U.S. budget office director and another was widely discussed deficit reduction plan for yourself and former new Mexico republican senator Peter many MeiNi west name co-author.
He Lin told Reuters in an interview: "I am very optimistic,". "I think, we can do it" borna and barack Obama "is likely to be a big deal."




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