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US ‘fiscal cliff’ fix could help economy at home

There’s a good chance that a fix for the United States’s looming ‘fiscal cliff’ could lead to benefits here at home where the economy and taxation is concerned.

The US Congress stands to see massive spending cuts and tax rises come into effect if it does nothing by the deadline, leading to deleterious effects on both the American economy and the wider global economic landscape – part of why the eventuality is known as the ‘fiscal cliff.’ Of course, the majority of economic experts are rather secure in the assumption that even the fractious and sometimes mind-numbing egotists currently ‘serving’ the American people would not ruin the entire worldwide economy just because they can’t stop arguing, though that’s not to say the coming year won’t bring its fair share of economic upheaval.

It’s a far cry from the current European financial landscape, where the uncertainty in the eurozone runs rampant with countries such as Greece a hairsbreadth from economic collapse.  The US is rather well-off when you compare it to EU member countries, though the US Federal government is swiftly approaching entitlement spending levels that match such levels across the pond whilst having taxation levels that are traditionally low in comparison to this side of the Atlantic.

The true problem here is that US lawmakers want to have their cake and eat it too, but it’s simply an impossibility. The fight is now between cutting entitlements or raising taxes on the more wealthy American taxpayers, polarizing the US government.

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