As U.S. President Barack Obama locks horns with Republican Congressmen over plans to raise taxes and eliminate tax cuts for the rich as part of steps to reduce the spiraling budgetary deficit, citizens of all strata are keeping their fingers crossed as to how the matter will finally pan out.
Obama is pushing for tax increases for those earnings $250,000 and above per year starting 2013, as well as cut tax subsidies the rich populace enjoy under a program implement under predecessor George Bush, Jr. But Republicans are fuming at the proposals and say the deficit can be bridged by tax cuts alone and that any move to raise taxes will only further impair an already weak economy that is thirsting for more jobs.
It is not only the ordinary and rich populace that are keenly watching as to how things will finally turn out. Corporates too are keeping a tab of the fiscal cliff debate as dividends they pay to shareholders are expected to be heavily taxed next year onwards.
But given the mandate Obama has as evinced by his return to the White House, it is obvious that the dogged president will not budge from his stand, though scope remains for some slight leeway.
The U.S. has been the main prop up for global economic growth despite it being stuck in recession. An amicable solution to the fiscal cliff problem will allay fears of the investing class and aid in domestic economic growth, which in turn is expected to have a multiplier effect on the global economy.
The Euro Zone continues to be mired in fiscal glut with nations including Greece, Spain and Italy facing serious recession. In Asia, China happens to be a bright spot as it showed some improvement in manufacturing activity in November. Some nations such as Brazil and India are seen as promising, despite the latter seeing weak growth owing to structural issues.
Will 2013 be a harbinger of positive news for the world economy? Lets wait and watch...
Obama is pushing for tax increases for those earnings $250,000 and above per year starting 2013, as well as cut tax subsidies the rich populace enjoy under a program implement under predecessor George Bush, Jr. But Republicans are fuming at the proposals and say the deficit can be bridged by tax cuts alone and that any move to raise taxes will only further impair an already weak economy that is thirsting for more jobs.
It is not only the ordinary and rich populace that are keenly watching as to how things will finally turn out. Corporates too are keeping a tab of the fiscal cliff debate as dividends they pay to shareholders are expected to be heavily taxed next year onwards.
But given the mandate Obama has as evinced by his return to the White House, it is obvious that the dogged president will not budge from his stand, though scope remains for some slight leeway.
The U.S. has been the main prop up for global economic growth despite it being stuck in recession. An amicable solution to the fiscal cliff problem will allay fears of the investing class and aid in domestic economic growth, which in turn is expected to have a multiplier effect on the global economy.
The Euro Zone continues to be mired in fiscal glut with nations including Greece, Spain and Italy facing serious recession. In Asia, China happens to be a bright spot as it showed some improvement in manufacturing activity in November. Some nations such as Brazil and India are seen as promising, despite the latter seeing weak growth owing to structural issues.
Will 2013 be a harbinger of positive news for the world economy? Lets wait and watch...
