The fiscal cliff
is a hoax, according to Paul Craig Roberts, American economist and former
assistant secretary of the Treasury during the Reagan
Administration.
“The fiscal
cliff is a hoax because the amount of revenues that the government is speaking
about, total revenues that would come from tax increases and spending cuts is a
very, very small part of the annual budget deficit and the cumulative buildup of
the national debt,” Roberts said.
“Their speaking
about cutting or raising taxes for a total of about $120 billion per year. But
the annual budget deficit is over $1 trillion per year, so at best the cuts are
only 10% of the annual budget deficit and therefore they will not stop the
buildup of the public debt,” Roberts explained.
Experts say
Congress needs to enact at least $4 trillion in deficit reduction over 10 years
to start curbing the growth in debt, according to CNN.
U.S.
congressional leaders said Sunday, Dec 30 they remain deadlocked over some
"pretty big issues" in their last-gasp bid to craft a yearend deal to stop the
economy sliding off the so-called "fiscal cliff," according to the
AFP.
Budget experts
in Washington are dubious that the White House and Congress can reach an
effective fiscal deal that would accomplish long-term debt
reduction.
AHT/ARA