Fiscal cliff: What you need to know
May 16th, 2012
02:18 PM ET
2 years ago

Fiscal cliff: What you need to know

New York (CNNMoney) - On Tuesday, House Speaker John Boehner all but promised an ugly fight over the debt ceiling this year unless GOP demands for spending cuts are met.

Sound familiar? The GOP took the same tact last year, leading eventually to an epic Washington fight that led to a first-ever U.S. credit downgrade and a major disruption in global markets.

FULL STORY

Filed under: Budget • Congress
soundoff (35 Responses)
  1. vic , nashville ,tn

    I wish GOP leaders watch world news and understand what is going on Other side of Atlantic

    May 16, 2012 02:28 pm at 2:28 pm |
  2. Canuck

    Come on America , vote these Republicans out of office – they're way worse than useless.

    May 16, 2012 02:28 pm at 2:28 pm |
  3. Data Driven

    Sure you want to go there in an presidential election year, Speaker Barfly? It won't just be Tea Partiers voting this time around. Most moderates and independents - I.e., most voters - are not on board with drastic cuts in social safety-net spending. However, if you're talking about following through on the promise to cut defense spending now that your Supercommittee failed to come to a budget agreement, well, as AC/DC once observed, you can "have a drink on me", Speaker Barfly.

    May 16, 2012 02:34 pm at 2:34 pm |
  4. American

    That's it, Boehner, downgrade America's credit rating again with your uncompromising nonsense. Disgusting.
    Please vote it out.

    May 16, 2012 02:35 pm at 2:35 pm |
  5. Independant Texan

    TALK,TALK,TALK, BLABLABLABLA. That and raising money is all they`re good for.-- Most of them are responsible for the mess we`re in right now. --- Voting the Repubs back in the House is like locking the fox in the hen house trusting the fox to not eat the hens as before. That`s the height of stupidity !!!!!!!!

    May 16, 2012 02:37 pm at 2:37 pm |
  6. Bill

    The blood-shot eyed lose will no longer be Speaker after November 2012. Well, January 2013. He is toast.

    May 16, 2012 02:40 pm at 2:40 pm |
  7. s

    Boehner a complete and total waste of life, Hope he is voted out and let him deal with his voters back home and see what happens to him.

    May 16, 2012 02:49 pm at 2:49 pm |
  8. Obama 2012 - BEND Forward America, take another 4 long years of FAILURE

    So what is the fiscal cliff? The phrase was coined by Federal Reserve Chairman Ben Bernanke to describe the simultaneous onset of tax increases and spending cuts that will be triggered on Jan. 1 unless Congress acts.
    Combined the policies would take $7 trillion out of the economy over 10 years - about $500 billion of which would occur in 2013.
    Such measures include the expiration of the Bush tax cuts, middle class protection from the Alternative Minimum Tax, and more than 50 "temporary" tax breaks for individuals and businesses that have been on the books for years.
    =======================================================================================
    So what is the big deal here??? This is EXACTLY the Democrat/leftist plan! Massive tax hikes and very little spending cuts. It is the Socialist solution. Keep spending, spending, spending and rasiing taxes to pay for it. Again, what's the big deal? Everybody is on board with massive tax hikes right? Everybody is onboard with paying for our massive socialist welfare state, right?? I mean we could go all the way up to 100% taxation to pay for it if we have to.

    May 16, 2012 02:50 pm at 2:50 pm |
  9. The REAL TRUTH...

    The problem with holding the debt ceiling hostage that it's NOT good for the country as a whole. Especially when the cuts that are being asked for are know to be contrary to the beliefs of the other side of the aisle.
    Instead to the last 3 yrs or partisanship, the Grand Obstructionist Party needs to quit catareing to the Teapug fringe and do the job we're paying them to... which is come to some compromise with the Dems on all aspects of Governance. When the GOBP points fingers at Obama, remember that 3 of them are pointing back at them !!.

    May 16, 2012 02:51 pm at 2:51 pm |
  10. king

    Europe is in a double recession right now because the gullible allow them to use fear mungering tactic and talking point to convince them to vote against their own interest, and now the debt is growing even worst than before and their economy is shot. The repubs are using the same destructive tactics to the gullible here across the Atlantic and that is working just like the European tactic did. I will be moving from the large city to a rural area far away from the riots that will be coming our way, when the repubs take the spenders money and give it the rich to invest and build up China, with their slave labor.?

    May 16, 2012 02:55 pm at 2:55 pm |
  11. Anonymous

    So the Orange Crybaby wants austerity? That's killing Europe and will kill the US as well OTOH, if he means tax cuts, Cantor and the rest of the GOBP baggers will kill the Orange Crybaby.

    PS: The GOBP cult not only drove the US to the edge of the fiscal cliff, they now want to push everyone over except for the GOBP's wealthy owners.

    May 16, 2012 02:56 pm at 2:56 pm |
  12. googleman

    THis is the biggest load of crap. The GOP trying to reduce our deficit didn't lead to the downgrade and financial disruption – out debt did and the out of control spending. In order to prevent the downgrade, they needed to cut more than they did, but the dems would not let them

    May 16, 2012 03:01 pm at 3:01 pm |
  13. Rudy NYC

    ...BEND....

    ....So what is the big deal here??? This is EXACTLY the Democrat/leftist plan! Massive tax hikes and very little spending cuts. It is the Socialist solution......
    -----------------------
    Excuse me. The Democrats have honored the agreeement set last summer during the first debt ceiling fiasco. The Republicans have recently passed a House budget reneging on that agreement. An agreement which calls for a trillion dollars in cuts, across the board. The Republican budget lumps all of the cuts into one area and INCREASES defense spending.

    Furthermore, the Republican plan will get vetoed for the simple reason that it doesn ot pay for it's tax cuts. Two can play the game Mr. Speaker. If you want tax cuts, then pay for them. You're allowing the Tea Party to paint your party into a corner, so you can wind up with egg on your face again like did last December.

    May 16, 2012 03:02 pm at 3:02 pm |
  14. gg

    have another drink boehner- the bush fires are still burning –i guess there are no republicans that don,t receive -social security,medicad,medicare,unemployment insurance benefit from other safety net programs–don,t worry bishop romney will get rid of these democrat programs

    May 16, 2012 03:04 pm at 3:04 pm |
  15. GonzoinHouston

    BEND Forward:
    " This is EXACTLY the Democrat/leftist plan! Massive tax hikes and very little spending cuts. It is the Socialist solution."

    100% taxation is socialism or Marxism. 35% is not. Get a grip. Most of the things the GOP is calling for would be appropriate in a strong economy; sort of like what Clinton did and W failed to do. To do those things in the current economy would be catastrophic.

    May 16, 2012 03:05 pm at 3:05 pm |
  16. Obama 2012 - BEND Forward America, take another 4 long years of FAILURE

    The REAL TRUTH... - The problem with holding the debt ceiling hostage that it's NOT good for the country as a whole. Especially when the cuts that are being asked for are know to be contrary to the beliefs of the other side of the aisle.
    =====================================================================================
    Well then let's just raise it to $999 TRILLION and be done with it. Our country can handle the debt right? Why all this fuss and bother? After all, you got so many riuch people here and they can pay for it by writing one more check. We just need to keep partying on as usual.

    May 16, 2012 03:08 pm at 3:08 pm |
  17. Beverly - NYC

    Boehner wants to actually work on something 2 weeks before a deadline or a crisis, can we say smoke screen. Next you'll be saying you will give up your summer vacation to work things out, NOT. Enjoy your lunch with the President then go back to what you've been doing since becoming speaker in 2010 NOTHING.

    May 16, 2012 03:10 pm at 3:10 pm |
  18. Marie MD

    Oh please bo ner, zip it. We already know that you are a weak weeping leader who sounds like a girl when making a point in the House.
    Your teapublikans want to take money from Obamacare in particular the keathcare for women, seniors, the poor. You know, the pogroms that help everyone but your rich lobbyist friends and corporations!
    You are a disgusting orange smoking drunk!

    May 16, 2012 03:18 pm at 3:18 pm |
  19. Mikey

    Here we go again. Are they going to once again hold our economy and credit worthiness hostage in order to force even move spening cuts from the 15% of the budget that actually helps people and small businesses while, at the same time, protecting the kind of spending that lines the pockets of large corporations and their already uber-wealthy friends and benefactors? Perhaps they want to lower or eliminate or severly reduce capital gains and estate taxes – the kind of taxes they pay, while reducing help for the poor. Are they going to tell them it will all trickle down, even though it hasn't the previous times they tried it. If they do, we're all going to get wet from the trickle, but don't believe it when they tell you it's rain.

    May 16, 2012 03:19 pm at 3:19 pm |
  20. Mikey

    @Rudy – "The Republicans have recently passed a House budget reneging on that agreement."

    You weren't expected honor from the right, were you? Greed, selfishness, and narrowmindedness has no honor.

    May 16, 2012 03:21 pm at 3:21 pm |
  21. once upon a horse

    maybe Boehner is hoping for those good old bi-partisan negotiations you know where that means he gets 98% of what he wants. This new GOP is PATHETIC!

    May 16, 2012 03:21 pm at 3:21 pm |
  22. The REAL TRUTH...

    @BEND Forward – "Well then let's just raise it to $999 TRILLION and be done with it. Our country can handle the debt right? Why all this fuss and bother? After all, you got so many riuch people here and they can pay for it by writing one more check. We just need to keep partying on as usual"
    ------------------------------
    I see you usual extremist view is in play again... what I posted on was the LACK OF COMPROMISE and PARTISANSHIP that is the mode du jour in Congress. The blame is not exclusively the GOP's, but even the compromise met on the debt ceiling is now being reneged on. As I stated, the GOP needs to do what we pay them to do and help govern... not DEMAND SS cuts while increasing he Defense budget... !!

    May 16, 2012 03:24 pm at 3:24 pm |
  23. Obama 2012 - BEND Forward America, take another 4 long years of FAILURE

    GonzoinHouston - 100% taxation is socialism or Marxism. 35% is not.
    ===================================================
    Not really, socialism operates on very high percentages. But your 35% is totally misleading. Democrats want to raise the top rate to over 39% and with additional "millionaire penalities" that raise it even higher into the 40's maybe mid-40s. Add to this state, local, sales taxes and you're around 55-60%. So exactly at what percentage are we offically a socialist state? When half the people in the country pay ZERO income taxes, fewer and fewer pay more and more so these percentages will need to climb to support the massive number of tax dodgers.

    May 16, 2012 03:24 pm at 3:24 pm |
  24. rs

    I say bring it on Mr. Boehner. The last epic hissy fit the GOP threw in the House drove the popularity of GOP Congressmen below that of the American Communist Party- do it! Its an election year.

    May 16, 2012 03:25 pm at 3:25 pm |
  25. NATHAN WIMBERLY

    The GOBP are determined to downgrade America's credit rating again.

    May 16, 2012 03:26 pm at 3:26 pm |
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