George Waldon of Arkansas Business warns of upcoming tax crisis in his article, The Fiscal Cliff: Recession Looms Without Compromise, Leaders in Arkansas Fear:If Congress fails to address the so-called fiscal cliff, the United States faces another recession, leaving Arkansas political and business leaders to hope the critical hour of decision will force the appearance of bipartisanship.The fiscal cliff remains an icon of the hour: a metaphorical escarpment built on a mountain of national debt that stands at $16 trillion and growing.Threatening to send the economy tumbling over the edge in 2013 is a convergence of possible tax increases and automatic spending cuts intended to reduce the federal government's budget deficit."All of that coming together would have a very, very negative effect on our economy," said U.S. Sen. John Boozman, R-Ark. "If we don't figure out how to come up with $1.2 trillion from the last deal that was struck with the debt ceiling, then we've got to have massive defense cuts."The sequestration component of the 2011 Budget Control Act mandates $1.2 trillion in budget reductions during 10 years. Those largely across-the-board spending cuts - including cuts in the defense budget that don't sit well with Republicans like Boozman - would begin in 2013.
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