The Free Press, Mankato, MN

State, national news

December 28, 2012

Fiscal cliff: the options for what could happen

— Efforts to save the nation from going over a year-end "fiscal cliff" were still in disarray as lawmakers returned to the Capitol to confront the tax-and-spend crisis. A tone-setting quotation was Democratic Sen. Harry Reid's assertion that the House under Republican Speaker John Boehner had been "operating with a dictatorship."

President Barack Obama flew back to Washington from Hawaii after telephoning congressional leaders from his Christmas vacation perch. Once back, he set up a meeting with leaders of both parties at the White House late Friday to make a fresh attempt to find a solution before Monday night's deadline.

A look at why it's so hard for Republicans and Democrats to compromise on urgent matters of taxes and spending, and what happens if they fail to meet their deadline:

___

NEW YEAR'S HEADACHE

Partly by fate, partly by design, some scary fiscal forces come together at the start of 2013 unless Congress and Obama act to stop them. They include:

— Some $536 billion in tax increases, touching nearly all Americans, because various federal tax cuts and breaks expire at year's end.

— About $110 billion in spending cuts divided equally between the military and most other federal departments. That's about 8 percent of their annual budgets, 9 percent for the Pentagon.

Hitting the national economy with that double whammy of tax increases and spending cuts is what's called going over the "fiscal cliff." If allowed to unfold over 2013, it would lead to recession, a big jump in unemployment and financial market turmoil, economists predict.

___

WHAT IF THEY MISS THE DEADLINE?

If New Year's Day arrives without a deal, the nation shouldn't plunge onto the shoals of recession immediately. There still might be time to engineer a soft landing.

Text Only | Photo Reprints
State, national news
  • Tourism push plays up 'Only in Minnesota' ST. PAUL — (AP) — Say goodbye to "More to Explore." Minnesota tourism promoters ushered in a new slogan Thursday that focuses on "Only in Minnesota" experiences as part of their largest-ever advertising campaign. The revamped message kicks off a maj

    April 17, 2014

  • mfp ap pipeline photo Minnesota Pipe Line seeks to expand capacity MINNEAPOLIS (AP) — Minnesota Pipe Line Co. announced plans Thursday to nearly double the capacity of a crude oil pipeline that carries oil from Canada and North Dakota to the two refineries in the Twin Cities that produce most of Minnesota's and much

    April 17, 2014 1 Photo

  • Holder asserts his commitment to fighting heroin WASHINGTON — Attorney General Eric H. Holder Jr. has been crusading for more lenient treatment for nonviolent drug offenders, making it a top priority before he is expected to leave office this year. Recently, however, he has been forced to confront

    April 17, 2014

  • Less-schooled whites lose longevity, study finds ATLANTA — Barbara Gentry slowly shifts her heavy frame out of a chair and uses a walker to move the dozen feet to a chair not far from the pool table at the Buford Senior Center. Her hair is white and a cough sometimes interrupts her speech, but she

    April 17, 2014

  • Tracking system nabbing drug dealers -- and law-abiding pilots LOS ANGELES — Ken Dobson, a retired police officer, said he received quite a welcome when he landed his single-engine Cessna in Detroit two days after leaving his home in Palm Desert, Calif. Five sheriff’s cars surrounded the plane and deputies got

    April 17, 2014

  • Hypersonic jets, lasers future for Air Force researchers WRIGHT-PATTERSON AIR FORCE BASE, Ohio — Air Force hypersonic weapons and fighter jets with lasers could fly in the skies of the future. Air Force Research Laboratory researchers have made top priorities of hypersonics, directed-energy weapons and au

    April 16, 2014

  • Dress codes: Where should schools set limits? EVANSTON, Ill. (AP) — They're called leggings — popular fashion items that are tight-fitting pants to some, and glorified tights to others. Younger girls often wear them as pants with little fuss. But as those same girls approach middle school, legg

    April 16, 2014

  • On Vegas Strip, the Harmon tower set to fall -- with a whimper LAS VEGAS — One by one, the grand old dames of the Strip outlived their charms — the Dunes, Stardust and Aladdin — and down they came, thanks to some well-rigged dynamite, in a booming flash of bravado and showmanship that became this city’s staple —

    April 16, 2014

  • Man accused of abusing 2 girls in 'Maidens Group' MINNEAPOLIS (AP) — Authorities were searching Tuesday for a self-professed minister accused of sexually abusing at least two girls in a "Maidens Group" at his religious fellowship in rural Minnesota, where he told one victim she would remain a virgin

    April 15, 2014

  • Deputy shot, wounded in Norman County PERLEY, Minn. (AP) — Authorities say a 19-year-old man from Fertile is under arrest for shooting a sheriff's deputy during a traffic stop in northwestern Minnesota. The Minnesota Bureau of Criminal Apprehension says the Norman County deputy was wear

    April 15, 2014