The election is about the only thing grabbing headlines at the moment; but after next week, the screams about the impending “fiscal cliff” will reach a deafening media roar.
If Congress doesn’t take action to come to an agreement in its budget negotiations, more than 30 million already cash-strapped American households could be hit with the Alternative Minimum Tax (AMT).
The election’s outcome is expected to serve well as an indicator of which party will have the most Congressional power in the discussions. But regardless of which Presidential candidate is elected, Americans’ taxes will go up if an agreement isn’t reached.
The Financial Services Roundtable urged lawmakers to “bridge over” the fiscal cliff to buy time to deal with more difficult issues surrounding taxes and spending.
“The fiscal cliff is imposing a negative drag on business lending, hiring, spending and investment right now, despite the actual ‘cliff’ being over two months away,” Tim Pawlenty, president and CEO of the Roundtable wrote to lawmakers.