Avoiding the fiscal cliff in the US

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Avoiding the fiscal cliff in the US

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Finding a way of avoidingfalling off the fiscal cliff is themain priority for Obama.

Politicians have less than two months to find a way of dealing with the 600 billion dollars worth of spending cuts and tax increases due to come into effect at the end of the year.

House Speaker John Boehner says short term measures must come before long-term structural changes;

“We won’t solve the problem of our fiscal imbalance
overnight and certainly won’t do it in a lame-duck session of Congress. And it won’t be solved simply by raising taxes or taking a plunge off the fiscal cliff. What we can do is avert the cliff in a manner that serves as a down payment on – and a catalyst for – major solutions, enacted in 2013, to begin to solve the problem.”

The US government remains divided, with Republicans still in control of the House and Democrats holding the Senate.

On Main Street the majority are happy with their choice of leader. But whether they are happy on Wall Street remains to be seen.