Fiscal cliff threat looms now that election is overPosted on
Now that President Barack Obama has won re-election, the marine industry will be watching to see how he proposes to deal with the so-called “fiscal cliff” – a $600 billion mix of tax cuts set to expire at the end of the year and federal spending cuts that would take effect Jan. 2.
Failure to prevent a dive off the cliff could rattle U.S. markets and push the economy into a recession, which could have global implications, Reuters said in a post-election report.
Obama, who defeated Republican challenger Mitt Romney on Tuesday, will want to strike a deal with Washington lawmakers before Dec. 31 or risk a recession in the first half of next year, budget experts and Democratic aides say.
Obama and most Democrats are at odds with Republicans in Congress over the stickiest issue whether to let low tax rates for the wealthiest Americans expire on Dec. 31.
The president and most Democrats want to raise taxes on income earned above $250,000; Republicans want to extend the current low rates for all income levels.
Financial markets and the business community crave long-term certainty and that is what a major deal envisioned by Obama is intended to tackle.