House Republicans are getting ready to dabble in the dark art of their fiscal wizardry once again in 2015.
From the New York Times:
As House Republicans mull another round of fiscal brinkmanship with President Obama, a dark cloud is threatening to return to otherwise clearing economic skies: fiscal and political uncertainty.
Turns out, nothing is worse for the economy than uncertainty, and that's exactly what the House GOP is bringing. Heck, we don't even know which John Boehner is going to show up on a daily basis, let alone what his caucus will bring.
Hanging in the balance early next year are a number of big business and personal tax breaks which are set to expire Jan. 1. Naturally, the House GOP favors more breaks for businesses but feels less moved by the fortunes of everyone else, namely middle- and low-income families. Thus, a potential impasse looms between the House GOP and Senate Dems early next year. Here's a glimpse of other pitfalls in the making for 2015:
On March 28, unless lawmakers act, physician reimbursements from Medicare drop off a cliff. On May 31, the highway trust fund runs out of money. In June, the Export-Import Bank, which helps finance overseas purchases of American exports, might shut in the face of conservative opposition to its mission. Then on Sept. 30, the entire Children’s Health Insurance Program faces its expiration. A few days later, across-the-board spending cuts loom once again.
Republican Sen. Orrin Hatch of Utah, who will take over as chair of the Senate Finance Committee next year, appears to be emerging as a potential voice of reason for the GOP. Based on the impending uncertainty,
Hatch said, "families, individuals, and businesses will have to once again put long-term plans on hold in hopes that Congress can get its act together next time around.”
Next year, Republicans will resume control over an economy that is slowly but surely regaining its legs, hitting 5.8 percent unemployment in October, its lowest level in more than six years. Unfortunately, business analysts from the Times story aren't optimistic.
“Investors should prepare for a return of this type of behavior and volatility in Washington in 2015 as governing-by-crisis appears ready to return,” Chris Krueger, an analyst at Guggenheim Securities, warned clients on Tuesday.