Tagged: fiscal cliff

The short-term compromise that Congress passed last night may have averted the immediate impacts of the so-called "fiscal cliff,” but bigger battles lie ahead for Congress and the White House.

Michigan State University Economics professor Charley Ballard spoke with Cindy about the deal and what we can expect in the coming months.

Ballard said he was hoping for a grand bargain, a much more comprehensive effort to deal with the country’s fiscal problems, but that something is better than nothing.

Michigan’s top budget official is praising Congress for averting the so-called “fiscal cliff.”

Budget Director John Nixon said sweeping tax increases and across-the-board spending cuts could have seriously hurt the state’s finances.

“The good news is that I think as far as the whole economy is concerned, what they did yesterday was big for the state of Michigan,” said Nixon.

Nixon said he was most worried going over “the cliff” would have led to another recession.

That could have affected the state’s ability to pay for many basic programs and projects.

State officials say they’re keeping close watch on upcoming negotiations in Washington. They could include proposed cuts to state-administered programs like Medicaid and food stamps.

Governor Rick Snyder says he’s keeping a close eye on the “budget cliff” discussions in Washington and how they might affect Michigan.

Governor Snyder says the state’s finances are already tight, and he’s concerned about the possibility of spending cuts from the federal government.

“There’s a real issue with the fiscal cliff out of Washington as to what could happen and what they could cut at the state level that could create some severe stress,” says Snyder.

Lake Superior State University in Sault Ste Marie is out with its annual year-end list of words and phrases that should be banned for overuse.

As you may expect, words and phrases popular with politicians top this year’s banned list, with one getting a lot of use right now leading them all:  Fiscal Cliff. 

Banned Words list co-creator John Shibley says the phrase used to describe the combination of looming federal tax increases and spending cuts was overused by the news media.

Members of Michigan’s congressional delegation are either back in Washington or soon will be.

Congress is going back into session to deal with the looming combination of automatic tax increases and deep spending cuts known as the “fiscal cliff”. 

There have been suggestions that lawmakers will allow the “fiscal cliff” to go ahead and leave the job of picking up the pieces to the next Congress that will be sworn in next month.

Mid-Michigan congressman Tim Walberg doesn’t want to see that happen.

Many Michiganders may face a double dose of economic reality come January 1st, as credit card bills start arriving and their federal taxes may increase.

Dorothy Barrick is a group manager with Greenpath, a not-for- profit credit counseling agency. 

She says Michiganders have been spending more and saving less during 2012.  

Barrick says if congress and the president fail to avoid the fiscal cliff, many Michiganders may be surprised at the size of increased federal taxes beginning next month.