Iowa Senator Tom Harkin says the so-called "fiscal cliff" does not exist. The Democratic Senator says there's a "slope," but no daunting financial precipice upon which our national economy is teetering.
He compares the predictions about our country's looming fiscal issues to the Y-2-K scare of a dozen years ago, something that proved completely harmless.
The basis for the "cliff" is that around the first day of January, a series of 500-billion dollars in tax increases and 200-billion in budget cuts will automatically take effect. Harkin disputes reports that forecast a national economic collapse if lawmakers aren't able to prevent those actions from taking place.
If the "cliff" isn't avoided, Harkin remains unconvinced we're headed for another near-immediate recession.
A report from the Congressional Budget Office says the combined 700-billion dollars in tax cuts and budget cuts represents about four-percent of the gross domestic product, which could be a large enough leap to prompt a recession.
Contributed by Radio Iowa