As Fiscal Cliff Looms, Obama Stands Firm On Tax Increases
President Obama announced today that he would not agree to any budget deal that does not include tax increases for household earning over $250,000 a year. With just six weeks left until the new year, lawmakers in Washington are poised for a Â fierce battle over spending and taxes. If they are unable to reach an agreement, $300 billion inÂ tax cut expirations and $100 billion in federal spending cuts will take effect on January 1.
Despite Â a great deal of talk from both parties about bipartisanship, neither side seems prepared to back down. Â Republican leaders argue that tax hikes will discourage business owners from hiring new employees and prevent investors from financing new businesses. Democrats are united in favor of allowing the wealthy to be taxed at the rates that were in place during the 1990s.
Meanwhile, many small business owners are withholding capital outlays until a budget deal is reached. In a recent poll of small business owners, the National Federation of Independent business found that a record 23 percent of respondents reported that they were “uncertain” about economic conditions over the next six months.