The Treasury Secretaries Opine
By Children’s Home Society of Florida Foundation
At a meeting in Washington on September 12, former Treasury Secretaries Robert Rubin and James Baker discussed the upcoming “fiscal cliff.” The forum was held in order to discuss the national debt and potential financial solutions. Treasury Secretaries from both parties were invited to discuss future financial options.
Both responded to the Congressional Budget Office (CBO) report that indicates the increased taxes and reduced spending scheduled to take place in January of 2013 could lead to recession. The Washington name for the potential financial challenge to the nation is “fiscal cliff.”
Rubin Speaks
Former Secretary Rubin stated, “It may be that for all kinds of reasons one party or another decides that’s the way to negotiate. But if we go over, we can’t stay over for very long, that’s for sure.” Rubin was referring to the effect of the potential fiscal cliff on negotiations between the parties in the November Congressional session.
Baker Speaks
Former Treasury Secretary James Baker joined by satellite; he stated, “There will be a recognition that we have to move the cliff out … so that we have time to deal with it and deal with it in an effective and orderly way, and I think that’s what’s going to happen.”
Secretary Baker was referring to proposals by Assistant Senate Majority Leader Richard Durbin (D-IL) and others. Durbin has introduced a plan to delay the scheduled changes for six months to enable the Senate Finance Committee and House Ways and Means Committee to develop and pass new legislation.
Boehner Speaks
House Speaker John Boehner (R-OH) was asked this week about the fiscal cliff and whether a compromise is possible. Boehner stated he is “not confident at all” that the House and Senate will be able to act. The House passed the Job Protection and Recession Prevention Act of 2012 (H.R. 8) to extend all tax rates for one year. The House also has passed the Pathway to Job Creation through a Simpler, Fairer Tax Code Act of 2012 (H.R. 6169) to set up a fast-track process for tax reform in 2013.
Assessment
However, the Senate has passed the Middle Class Tax Cut Act (S. 3412) and would increase taxes for upper-income individuals. Senate Majority Leader Harry Reid (D-NV) still indicated that he hopes for a compromise in November.
Conclusion
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Filed under: Alerts Sign-Up, Financial Planning, Health Law & Policy | Tagged: CBO, COngressional Budget Office, Fiscal Cliff, James Baker, John Boehner, Richard Durbin, Robert Rubin | 9 Comments »