President Barack Obama has requested Michigan car factory workers to construct additional support for his plan to fend off the impending fiscal cliff crisis, which primarily consists of increasing the tax rates of the wealthy Americans. The Barack Obama trip to Michigan was preceded by private meetings of his with the Republican House Speaker, John Boehner, on Sunday at the White House.
The US President’s appearance at a Detroit car factory on Monday consisted of him informing the Detroit car workers that he wouldn’t compromise with the Republicans on the matter of tax rises for the rich. The President, nonetheless, expressed willingness to negotiate with the Republicans on some issues related to the fiscal cliff crisis.
Barack Obama guaranteed to the Detroit car factory’s workers that the Democrats would enact some tough spending cuts where it was necessary. But the spending cuts, which would be incorporated in the Obama ‘fiscal cliff’ plan, weren’t specified by him at the Detroit event.
Barack Obama cautioned the automobile employees in Detroit that, if no congressional action was taken before 2013 to ward off the fiscal cliff threat, middle-class American families would witness a $2,200 (£1,369) increase in taxes in 2013. Middle-class Americans such as the car workers in Detroit couldn’t afford to withstand absence of congressional action on the fiscal cliff matter.
Barack Obama’s ‘fiscal cliff prevention plan’ involves jacking up the tax rates for the American millionaires while prolonging the George W Bush-era tax cuts for everyone else.
In connection with fiscal cliff, Republican Senator Jim DeMint quit the Senate to decry Barack Obama’s fiscal cliff plan as well as to condemn John Boehner’s negotiations with the US President to stop the fiscal cliff eruption.
Without US congressional action this year, fiscal cliff is expected to break out on January 1, 2013, as deep spending cuts and tax increases for all Americans will greet the country in 2013. Extended welfares for the long-term unemployed and a provisional reduction in payroll taxes are also listed to die at the same time. This is projected to defer the US economic recovery from the 2008 recession.