We’re not facing a fiscal cliff — It’s a fiscal ramp
By Jeff Janes
AMZ Financial Insurance Services, LLC
With all the heated discussions going on in Washington, the media has coined our nation's looming fiscal crisis the "fiscal cliff." Now when I think about that phrase, I conjure up images of daredevil base jumpers leaping out over a cliff and at the last second throwing a parachute open and floating safely back to Earth. Unfortunately we are not facing a cliff, where we will see anything go down if we go over it.
If you actually look at a chart showing the current proposals being offered in Washington, we are facing a fiscal ramp-up in spending, and in no way — in either the short- or long-term — can we match revenues to projected spending. Stop calling it a fiscal cliff, and call it what it is: a ramp-up in both taxes and spending. See the chart below developed by House Budget Committee, Congressional Budget Office and Office of Management and Budget of the White House.