Republicans ask 88% of US households to pay higher taxes, with income tax rates set to increase at midnight New Year’s Eve.
Negotiations broke down after Democrats rejected a GOP proposal (later retracted) to trim Social Security payments. Republicans had spent much of Sunday pushing to get Social Security cuts included in the deal, and when that effort fell apart, momentum toward a resolution disappeared. Why are they not worried about the middle class and want to protect the highest income earners?
Governance should be designed as an equalizer. Democrats are more inclined towards working families and those who are struggling for a better life said Jimmy Carter. It’s proved beyond doubt with all the discussions around the fiscal cliff.
In the light of all this haggling and Washington’s inability to reach a compromise what Mohamed El Erian said about the US downgrade is very factual..
“America’s downgrade may serve as a wakeup call for its policymakers. It is an unambiguous and loud signal of the country’s eroding economic strength and global standing. It renders urgent the need to regain the initiative through better economic policymaking and more coherent governance”
But unfortunately, the policy makers have not paid any attention!