Fiscal Cliff

Runaway Federal Spending Continues To Fuel Concern

Observers doubt that officials have the backbone, or sanity, to spend less

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The fiscal cliff deal raises taxes on the rich, investments and the vast majority of American households, while doing almost nothing to rein in spending.

Now that President Obama and fellow Democrats got their way on hiking taxes on the rich, they have no excuse for not taking on runaway government spending, Republican leaders argue. But some analysts doubt that the GOP itself is ready to take a serious stand.

The New Year's Day fiscal cliff deal hikes taxes by about $700 billion from 2013-22, IBD estimates. But that only will reduce the increase in the national debt by 14% over that period.