Congress and the President have about one month left before the country pitches over that dramatically described “fiscal cliff” and into disastrous economic times. If a deal cannot be made with regard to the Budget, automatic tax increases and spending cuts will wreak havoc across the country and affect virtually everyone. Obama Care will be part of the problem, according to some on the Hill.
As part of the 2013 economic stress, Obama Care will be implemented, costing thousands of dollars to businesses and each family, as they must purchase health care or pay a high penalty tax. In addition, doctors will be paid significantly less for their Medicare patient services, so much so that many doctors report they will either refuse treating those patients or go out of business.
As part of these budget talks, there could be some adjustments made to Obama Care. Now that some people have read what is in the bill, and understand its overall impact upon the country, Congress could make a few changes to relieve the expense and service cuts it will cause for businesses and many families. Some people will benefit from this health care plan, but the cost of Obama Care is yet another burden for states. State governments are hard pressed for cash and many are opting out of the health care exchanges called for under this plan.
To avoid a recession and to help boost employment, the government must come to a Budget deal prior to January 1, 2013, the fiscal cliff deadline. All parties are on a holiday break at the moment, but as soon as Thanksgiving recess is completed and the President returns from his Asian trip, talks will resume. This time, talks are not enough; an agreement or partial agreement must occur to help avoid economic disaster in 2013 and beyond.
Hopefully, Congress and the President will at least be able to agree on partial changes in programs to offset the economic effects expected in 2013 as Bush era tax cuts expire, extended unemployment benefits end, unemployment rises, Obama Care is implemented and defense cuts occur. Going out of business is not an option for many business owners. Those who pay attention to upcoming problems are ahead of the game. Having an experienced CFO to help manage company financials is the best way to protect your business against economic surprises.