Did We Avoid the Fiscal Cliff?

Politicians in Washington seem to think they saved the day. Their action has enabled us to avert "falling off the fiscal cliff." However, you decide. Here's what's happened:  (technorati code: 7VMQGF3VKNPF)
  • The Bush tax cuts on the middle class have been made permanent; however, the action of Congress this week has given us a substantial tax increase overall that will effect the middle class in less obvious ways
  • Tax increases on the wealthy will effect investments, economic growth, and job creation; so don't expect many (if any) new jobs in 2013; however, unemployment benefits were extended (but I think most of the unemployed would prefer a job)
  • Medicare cuts (26.5%) have been postponed until March
  • Spending decisions and tax increases will still produce around $1 trillion dollars a year in budget deficits and that's projected to increase, causing our national debt to continue to spiral out of control
Hummm, it seems to me that we just postponed it. Or maybe our politicians are just "easing" us down the cliff. All the drama, so little substance! I wonder how the decisions might have gone if they were being made by a group of good small business owners instead of career politicians? Maybe Reagan was right when he said, "Government is not the solution to the problem, government is the problem." My advice to small business owners:  Make sure you have a solid business plan for 2013! It all reminds me of this song from the musical Lil Abner. Enjoy!

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