The ‘fiscal cliff’ – automatic tax increases and spending cuts set to take effect on January 1st, 2013, isn’t just dominating the news, it’s top of mind for lobbyists as they work with lawmakers during the lame duck session to help avoid potentially devastating economic effects.
While there is still much disagreement on exactly how to step back from the “edge” of the fiscal cliff, there is near consensus on all sides that it must be avoided. If not, many economists fear the combination of $500 billion in tax increases and blunt spending cuts could pull the already fragile U.S. economy back into recession.
Nearly every industry and interest group would be affected. For their part, business leaders continue to urge President Obama and congressional lawmakers to find the quickest possible resolution. Some, like Morgan Stanley Chief Executive James Gorman, have even taken the unusual step of asking their employees to join in the lobbying effort to avoid the cliff by contacting their members of Congress.
Understanding that business will play a significant role in the negotiations, President Obama is scheduled on Wednesday to speak to the Business Roundtable, an advocacy organization comprised of chief executives of leading U.S. companies. Business leaders and many Republicans on Capitol Hill have stated their desire to extend the current tax rates for all Americans through 2013, something the administration doesn’t support.
As the January deadline approaches, we are presented with a prime opportunity for quality professional advocates to help bridge the divide between the White House and Capitol Hill and find a solution that eases uncertainty and promotes a stronger, healthier economy.
