HUNTSVILLE, Ala. (WHNT) – Eliminating the national debt proves elusive. Now, the pursuit may send us over the fiscal cliff.
But the term fiscal cliff is really a characterture of a complicated set of consequences, including sequestratrion.
So what is that anyway?
WHNT News 19 Political Analyst Dr. Jess Brown explains, “Sequestration is simply the term that would be used regarding the formula for the cuts you make on expenditures. The fiscal cliff notion entails both revenue and expenditure sides.”
So sequestration means cuts in spending. The fiscal cliff includes those cuts, but it also includes tax hikes.
Dr. Brown says it was designed to put pressure on Congress to make tough choices, “From sea to shining sea, we’ve had member of Congress who know, I can keep bringing goodies back home for the economic interests of my district, while not raising my taxes. That’s a prescription for a generation of red ink.”
But Dr. Brown also says negotiations in Congress over the fiscal cliff are just for spectacle, “We’re going through the political Kabuki dance. A little theater right now, both sides having to pander, but in the final analysis a handful of leaders will cut a deal.”
Dr. Brown sees the fiscal cliff debate in black and white, “In my view, there will be no going off the fiscal cliff, and there will be no sequestration.”
Dr. Brown thinks Congress will produce a solution, but he’s not convinced how good it will be, “The deal they will cut will be a proverbial band-aid. It will not structurally solve the long term debt problem.”