Fiscal Cliff is a Slope, Kenneth Mehlman Says

16 Jan

By now, most Americans will have heard of the so-called “fiscal cliff,” and many will have imagined a fast-approaching edge, which suddenly drops off into an imperceptibly deep ravine. But “what we dealt with earlier was really a slope more than a cliff,” says Kenneth Mehlmam, former chairman of the RNC and current head of Global Affairs for KKR.

 

“Taxes weren’t automatically going to go up. They were going to go up but that increase was to occur over a 10-year period. If over the 10 years that massive tax increase would occur, that slope would have been very detrimental to our economy,” Mehlman continued.

 

According to Mehlman, the actual “cliff” the United States is facing has yet to come. The government is set to reach its credit limit at the end of February, and if Congress can’t come up with a solution—options include cutting back federal spending or raising the debt ceiling—then the government will effectively run out of money come March.

 

“Republicans will look for every way they can to make the debate about funding the government… and not the deficit,” predicted Mehlman. The Democrats, he says, are more concerned about the U.S.’s credit rating, arguing that “for any spending reduction we need higher revenues.”

 

Kenneth Mehlman belieives that a large part of the reason why the United Stats is so fractured is that many communities lack diversity of political opinions and ideologies. News sources are tailored to these individual “political districts,” and this creates a severely biased community. Just as these districts remain divided all across the country, so has Congress remained sharply divided between two sides: Republican and Democrat.

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