Fiscal cliff looms, economy could enter another recession - New York News

Fiscal cliff looms, economy could enter another recession

Posted: Updated:
WASHINGTON -

More posturing over the weekend from the White House and Republicans in Congress as the fiscal cliff gets closer and closer.

Despite some early optimism, there are some predictions now that there won't be a deal -- that nearly all of us will face tax hikes at the end of the year and the economy could enter another recession.

With the White House ensuring that he was barely seen, the President left for a golf outing Sunday with former President Clinton.  The clock, meanwhile, keeps ticking as his point man in fiscal cliff negotiations took to five Sunday talk shows to make the administration's case.

"I think that's a very good set of proposals and we think that's good for the economy and if they have some different suggestions want to go further in some areas then they should lay that out to us," said Treasury Secretary Timothy Geithner on "FOX News Sunday."

The President's plan calls for $1.6 trillion in new taxes -- mostly aimed at the wealthy -- those would be assured.  Less sure -- the promised spending cuts that Republicans say might never actually happen -- meaning the Government takes in more money and spends more money, driving the debt higher.

"I mean think about the -- the proposal we got from the president.  If we gave the president $1.6 trillion of new money, what do you think he'd do with it?  He's going to spend it.  It's what Washington does," said Speaker of the House John Boehner on "FOX News Sunday."

The White House points out that they at least have a plan, while Republicans don't have specifics.  But one nonstarter, a White House proposal to give the President broad new power to run up far more public debt than we face now -- bypassing the Congressional oversight that's now in place.

A final agreement may hinge on a willingness to tackle big entitlement programs like Medicare and Social Security -- and a willingness to face the political risks associated with them.

 

  • Local NewsLocal NewsMore>>

  • Subway bedbug infestations on the rise

    Subway bedbug infestations on the rise

    Monday, September 1 2014 6:48 PM EDT2014-09-01 22:48:09 GMT
    It appears the subway bedbug problem we've been reporting is getting worse. Commuters already have to contend with sweltering platforms, scurrying rats and packed train cars, and now there's another transit woe: fear of bedbugs.
    It appears the subway bedbug problem we've been reporting is getting worse. Commuters already have to contend with sweltering platforms, scurrying rats and packed train cars, and now there's another transit woe: fear of bedbugs.
  • Hope's Land of Candy

    Hope's Land of Candy

    Monday, September 1 2014 6:26 PM EDT2014-09-01 22:26:26 GMT
    Step through the doors of Hope's Land of Candy in Island Park, Long Island and you''ll be taking a trip back in time. There's no WIFI but they do have a player piano, Victrola, and then there the candy, lot and lots of it.
    Step through the doors of Hope's Land of Candy in Island Park, Long Island and you''ll be taking a trip back in time. There's no WIFI but they do have a player piano, Victrola, and then there the candy, lot and lots of it.
  • West Indian Day Parade steps off amid shootings

    West Indian Day Parade steps off amid shootings

    Monday, September 1 2014 6:05 PM EDT2014-09-01 22:05:47 GMT
    The West Indian Day Parade is supposed to be a time of fun and excitement in celebration of Caribbean culture. However, several shootings near the parade has turned it into a day of tragedy for some.
    The West Indian Day Parade is supposed to be a time of fun and excitement in celebration of Caribbean culture. However, several shootings near the parade has turned it into a day of tragedy for some.
Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices