U.S. group urges $2 trillion alternative to fiscal cliff "time bomb"

Official photographic portrait of US President Barack Obama (born 4 August 1961; assumed office 20 January 2009) (Photo credit: Wikipedia)

Washington, sept.30, stock picks . - The independent watchdog group Taxpayers for Common Sense will unveil a $2 trillion deficit-reduction proposal in hopes of averting an economic debacle at year's end known as the fiscal cliff. On Monday, the group plans to detail about 130 specific deficit-reduction steps the U.S. Congress could take to replace across-the-board spending cuts of $1.2 trillion that are scheduled to take effect on January 2. These would occur just as tax increases for all income groups are due to kick in.

The combination of looming spending cuts and tax increases is commonly referred to in Washington as a "fiscal cliff" because economists say it would knock the struggling U.S. economy back into recession early next year.

Taxpayers for Common Sense noted that Congress and President Barack Obama were responsible for the August 2011 budget and debt limit deal that included the potentially harmful automatic spending cuts scheduled to begin in January with a $109 billion installment.

"And that's who is going to have to be responsible for defusing the ticking budget time bomb that would cut $1.2 trillion indiscriminately," the group said.

Targets of the group's plan include agriculture subsidies, the oil and gas industry and defense projects.

With members of Congress currently campaigning for re-election more than addressing the country's fiscal problems, private groups are stepping up with their own deficit-reduction plans. They fear that if such work is left for a short session following the November 6 presidential and congressional elections, Congress might end up letting the country go over the fiscal cliff.

Many Washington politicians say that remedies for the sluggish U.S. economy - and government budget deficits that have topped $1 trillion for four consecutive years - should be debated in this election season with the November 6 vote informing Congress on what to do.

Unwilling to wait, Taxpayers for Common Sense is touting a remedy that it argues would cleanse the U.S. budget and tax code of policies it says result in an "inefficient, ineffective or wasteful use of taxpayer dollars." ... Continue to read.

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