Rep. Randy Neugebauer Warns About a “Fiscal” Cliff
As described by Rep. Randy Neugebauer in his weekly newsletter, the fiscal cliff has several components. One component is mandatory, across-the-board spending cuts that will take effect in January. Neugebauer says the cuts will severely and unfairly target national defense. The second part of the fiscal cliff will also take place in January when the 2001 and 2003 tax cuts expire. Neugebauer predicts that the spending cuts and tax increases will severely jolt the economy. He points out that the non-partisan Congressional Budget Office estimates that the unemployment rate will rise to 9% in less than a year if Congress does not act before the end of this year.