Fiscal Cliff Dodged for Now
Sequestration and other items left to simmer.
Although potential spending cuts were in play until final passage of the Fiscal Cliff legislation in the U.S. House of RepresentaÂtives, the Senate bill remained intact and was sent to the president with a vote of 257-167. The American Taxpayer Relief Act of 2012 did not address spending cuts sought by House Republicans.
Many believe the Fiscal Cliff debate is over; such is not the case. The 113th Congress has been sworn in and President Obama has taken his second-term oath of office, so Congress and the administration will be faced with multiple fiscal challenges:
February – Sometime this month, the debt ceiling or legal borrowing limit will be reached and Congress will face legislation to raise the debt limit. Republicans have insisted that the debt ceiling legislation must include significant spending cuts. The president has recently indicated he won’t negotiate on the debt ceiling.
March – The Fiscal Cliff legislation prevented budget sequestration from kicking in until March 2013. The $110 billion in spending cuts for the remaining Fiscal Year 2013 will be divided between domestic and defense programs.
End of March – Appropriations (funding to run the government) for Fiscal Year 2013 expire without congressional action.
In last month’s issue of AutoInc., we highlighted key tax provisions that would be in jeopardy without Fiscal Cliff legislative action. Let’s take a look at key provisions of the new Fiscal Cliff legislation (see Fiscal Cliff chart on page 9) that is now public law.
Per earlier comments, budget sequestration has been delayed for two months or until March 1, 2013. Although the sequester might not directly impact many auto repair facilities, those repairers located in communities with a strong military presence could see significant cuts.
To view more on the American Taxpayer Relief Act of 2012, visit ASA’s legislative website: www.TakingTheHill.com, and the Communities area at www.ASA shop.org.
Copyright (c) 1996-2012. Automotive Service Association®. All rights reserved.