The Economy

In an effort to avoid the fiscal cliff, Republicans introduced their budget plan in order to save the economy. However, democrats quickly rebuffed it saying that it does not "meet the test of balance". The balance trying to be achieved is finding the right amount of cuts and tax increases and still getting the maximum amount of savings possible. Although the Republicans have a plan that slightly increases savings, it is not entirely realistic because it dampers the middle class even more than it is now and in some scenarios help the wealthy top percentage, our biggest taxpayers.

I believe that the Republican plan to avoid the fiscal cliff is not entirely appropriate at this situation. The wealthiest in our nation have indeed sometimes earned their way to the top, but once you get there, you sometimes forget your humble roots. They should be giving the most simply because they have the most, which is accountable for much more than the middle class. The republicans did give a proposal that would create an outrage from the public. One of their saving ideas includes $200 billion over 10 years by changing the way the government calculates inflation, which would negatively impact benefit increases in government programs such as Medicare or Social Security. It would also raise taxes by slowing the yearly rise in tax brackets. Republicans realized that this approach could be unpopular, but it was the "right response" to the deficits over $1 trillion.

The plan in theory does seem to aid the economy, but in reality it would create an outrage and the wealthiest in our nation would be getting away with minimal to no change in their tax programs. The people in the middle class should constitute to a large sum of the money being paid in taxes, but the upper class should be somewhere close, because although they lack numbers they have the money to fill the gap. The Republican plan also may increase taxes in some situations for the middle class and hurt programs that the middle class needs to live on, like Medicare. If this plan was to be enacted into play, we would see a huge amount of middle class Americans suffering while the upper class (top 2%) get away without much of an impact.





Works Cited

Killough, Ashley, Adam Levy, Deirdre Walsh, and Greg Botelho. "House GOP Offers Plan to Avoid Fiscal Cliff, but White House Says No." CNN. Cable News Network, 04 Dec. 2012. Web. 12 Dec. 2012. <http://www.cnn.com/2012/12/03/politics/fiscal-cliff/index.html>.

Parkinson, John. "Boehner Counters Obama Deficit-Cutting Deal With ‘Credible Plan’." ABC News. ABC News Network, n.d. Web. 12 Dec. 2012. <http://abcnews.go.com/blogs/politics/2012/12/boehner-counters-obama-deficit-cutting-deal-with-credible-plan/>.

Weisman, Johnathan. "Republicans Make Counteroffer in Fiscal Talks." The New York Times. The New York Times Company, 3 Dec. 2012. Web. 12 Dec. 2012. <http://www.nytimes.com/2012/12/04/us/politics/boehner-counters-obamas-proposal-on-deficit-cuts.html?_r=0>.