President Barack Obama announced on Friday, November 9, 2012 plans for a tax increase of the nation’s wealthy as means to avert a possible fiscal crisis within the U.S. Obama’s intentions include addressing the most imminent issues of the economic situation and federal budget within the U.S. without causing another recession. His spokesperson assured that the President will veto any options which do not include tax increases for the rich – a plan which stands firm against Republican interests. Obama stated: “I’m not wedded to every detail of my plan. I’m open to compromise. I’m open to new ideas. I’m committed to solving our fiscal challenges, but I refuse to accept any approach that isn’t balanced. If we’re serious about reducing the deficit, we have to combine spending cuts with revenue. And that means asking the wealthiest Americans to pay a little more in taxes. So our job now is to get a majority in Congress to reflect the will of the American people. I believe we can get that majority.”
With division between political parties still prevailing and Obama’s reelection, many political analysts believe that the pending “fiscal cliff” facing the U.S. economy will not be resolved as the Obama administration, Congress, and Senate continue the standoff between political parties. Automatic across the board cuts to the budget threaten to tremendously impact the economy and any possible economic growth.
The political turmoil within the U.S. has affected many aspects of the economy, including unemployment which has gradually diminished and financial market which has plummeted since Tuesday, November 6, 2012.