While Americans stash extra cash to prepare for the economic effects of the looming fiscal cliff in 2013, another more immediate concern has developed: How many people will get laid off as companies brace for spending cuts and tax hikes?
The fiscal cliff will pack a double whammy to some businesses. Companies in certain tax brackets will be paying more to Uncle Sam, while some will see their government funding disappear.
The substantial fiscal cliff effect has prompted firms to rein in spending, delay projects, defer bids - and cut staff.
In fact, a study last month from Ernst & Young, the National Federation of Independent Business, the U.S. Chamber of Commerce and other business advocates revealed the fiscal cliff could slash 710,000 jobs from the already beleaguered job market.
Bush Tax Cuts
Article Index
Fiscal Cliff Could Cost You Your Job
Warren Buffett, Bill Clinton Sound off on "Recession 2013"
As concerns mount that the United States is headed for a recession, two famous minds offered opposing takes on what's in store for the U.S. economy.
In one corner was the Oracle of Omaha, Warren Buffett; in the other, the 42nd President of the United States, Bill Clinton.
Speaking at the 25th anniversary dinner of the Economic Club of Washington, Buffett said that it is unlikely the U.S. economy will fall into another recession. He said the chances of that happening are "very low."
Buffett, who blames both political sides for the budget deficit, once again called for raising taxes and cutting spending.
"The problem is the Democrats don't want to talk about what expenditures they would cut and the Republicans don't want to talk about raising revenues," he said.
Buffett said "the big question" remains what's ahead for the euro.
"We've got this system where they're half in and half out," said Buffett, who is currently auctioning off a lunch with himself this week on eBay for charity. "They have to reconcile these things."
Reflecting on the Eurozone he said there is the possibility the U.S. will feel a "spill over" effect from Europe - which some would argue has already happened.
In one corner was the Oracle of Omaha, Warren Buffett; in the other, the 42nd President of the United States, Bill Clinton.
Speaking at the 25th anniversary dinner of the Economic Club of Washington, Buffett said that it is unlikely the U.S. economy will fall into another recession. He said the chances of that happening are "very low."
Buffett, who blames both political sides for the budget deficit, once again called for raising taxes and cutting spending.
"The problem is the Democrats don't want to talk about what expenditures they would cut and the Republicans don't want to talk about raising revenues," he said.
Buffett said "the big question" remains what's ahead for the euro.
"We've got this system where they're half in and half out," said Buffett, who is currently auctioning off a lunch with himself this week on eBay for charity. "They have to reconcile these things."
Reflecting on the Eurozone he said there is the possibility the U.S. will feel a "spill over" effect from Europe - which some would argue has already happened.
To continue, reading please click here...
Bush Tax Cuts: How to Profit From the Compromise Tax Deal In 2011
With a compromise agreement that extends the Bush tax cuts for two more years, the Obama administration has given investors what they wanted - but not what they needed.
The compromise tax deal was signed into law by U.S. President Barack Obama on Friday, and continues to draw fire from critics on both sides of the political aisle. The $858 billion tax package isn't paid for. In fact, it actually costs more than the controversial Obama stimulus plan that has been criticized for having little measurable impact - even as it caused the budget deficit and the U.S. debt burden to explode.
And yet, investors have been cheered by the deal.
Near term, that's an acceptable perception. But in the long run, some very real problems loom. Investors who ignore those problems will take a real beating - and it will be self-inflicted. But investors who prepare for the inevitable will actually improve their positions: They'll not only protect themselves, they will profit.
The compromise tax deal was signed into law by U.S. President Barack Obama on Friday, and continues to draw fire from critics on both sides of the political aisle. The $858 billion tax package isn't paid for. In fact, it actually costs more than the controversial Obama stimulus plan that has been criticized for having little measurable impact - even as it caused the budget deficit and the U.S. debt burden to explode.
And yet, investors have been cheered by the deal.
Near term, that's an acceptable perception. But in the long run, some very real problems loom. Investors who ignore those problems will take a real beating - and it will be self-inflicted. But investors who prepare for the inevitable will actually improve their positions: They'll not only protect themselves, they will profit.
Here's how investors need to position themselves for the fallout from the Bush-tax-cuts deal...
An Open Letter to Washington: How to Fix the Deficit and End the Bush-Tax-Cuts Debate
Dear Mr. President and members of Congress:
In the months that follow Tuesday's midterm elections, and into the New Year, you all face three very significant challenges. You must:
Let me explain.
In the months that follow Tuesday's midterm elections, and into the New Year, you all face three very significant challenges. You must:
- Find a solution to the Bush-tax-cuts controversy.
- Rein in the huge-and-growing U.S. budget deficit.
- And better police Wall Street, which got us into this mess in the first place.
Let me explain.
To see Hutchinson's solution, and to see how to join our campaign, please read on...
Question of the Week: The Battle Over Bush Tax Cuts is Destined for Deadlock
Democrats and Republicans have staked out their territory in the battle over the Bush tax cuts in the run up to November's midterm elections. However, readers remain unconvinced that the two parties will reach common ground on the issue anytime soon.
Most Republicans want to see all expiring tax cuts extended. Senate leader Mitch McConnell, R-KY, last week proposed legislation to continue the tax cuts indefinitely, wanting to show party unity after House Minority Leader John A. Boehner, R-OH, hinted that he'd be willing to compromise and vote for U.S. President Barack Obama's plan of continuing only middle-class tax cuts.
"If the only option I have is to vote for some of those tax reductions, I'll vote for them," Boehner told CBS's "Face the Nation" Sept. 12. Boehner had previously proposed extending the Bush tax cuts for two years.
Most Republicans want to see all expiring tax cuts extended. Senate leader Mitch McConnell, R-KY, last week proposed legislation to continue the tax cuts indefinitely, wanting to show party unity after House Minority Leader John A. Boehner, R-OH, hinted that he'd be willing to compromise and vote for U.S. President Barack Obama's plan of continuing only middle-class tax cuts.
"If the only option I have is to vote for some of those tax reductions, I'll vote for them," Boehner told CBS's "Face the Nation" Sept. 12. Boehner had previously proposed extending the Bush tax cuts for two years.
We Want to Hear From You: What Will Happen in the Bush Tax Cuts Battle?
Amid party dissension and mixed messages, the outcome of the Bush tax cuts battle is more unclear than ever. And the likelihood that Congress will make progress on the issue - let alone resolve it - before the Nov. 2 midterm elections is diminishing. The Bush tax cuts include breaks for taxpayers at all income […]
Money Morning Mailbag: Ending Bush Tax Cuts Not a Cure-All for U.S. Financial Woes
The question of whether or not to extend the Bush tax cuts will be a pivotal issue as Washington prepares for this year's midterm election.
The Congressional Budget Office yesterday (Thursday) reported that extending the tax cuts would result in only short-lived economic benefits.
"[It would provide] a considerable boost to economic activity in 2011 and beyond for a few years," CBO Director Douglas Elmendorf told CNN. "Over time, [however,] the negative consequences of very high federal borrowing build up."
The CBO reported that if the cuts for most U.S. taxpayers were made permanent - as proposed by U.S. President Barack Obama - the nation's accrued debt (not including money owed to Social Security and other government trust funds) could climb to 100% of gross domestic product by 2020, up from 62% this year.
The Congressional Budget Office yesterday (Thursday) reported that extending the tax cuts would result in only short-lived economic benefits.
"[It would provide] a considerable boost to economic activity in 2011 and beyond for a few years," CBO Director Douglas Elmendorf told CNN. "Over time, [however,] the negative consequences of very high federal borrowing build up."
The CBO reported that if the cuts for most U.S. taxpayers were made permanent - as proposed by U.S. President Barack Obama - the nation's accrued debt (not including money owed to Social Security and other government trust funds) could climb to 100% of gross domestic product by 2020, up from 62% this year.