Democrats, Republicans propose “new and improved” fiscal cliff plans

With three weeks to go before the legally mandated budget cuts and tax hikes deal a potentially fatal blow to the U.S. economic recovery, you might assume that Congressional Republicans and Democrats would have reached an agreement by now. Unfortunately, the two parties appear to be farther apart than ever on issues such as taxes and spending. However, according to various news reports, another set of proposals have been exchanged between Capitol Hill and the White House.

While some of the details remain unknown, according to CBS News, one of the major components of the Obama administration's plan was to lower the tax increase request from $1.6 trillion over 10 years to $1.4 trillion, bringing it closer in line with Republican demands but still well beyond what conservative politicians have said they would accept. The GOP initiative was not publicly unveiled, but insiders told the source that tax rate reform and entitlement changes were suggested as areas where additional revenues could be derived.

After news broke about the new set of proposed fiscal cliff resolutions, representatives from both parties quickly took to Twitter and the airwaves to dispel any ideas of compromise ahead of a final plan. Congressional Republican spokespersons attacked the Obama administration for a lack of specific spending cuts, an assertion that the president's press secretary, Jay Carney, called "simply incontestable."

On the Senate floor on December 11, the two leaders – Mitch McConnell (R-Ky.) and Harry Reid (D-NV) blasted each other for trying to stymie any deal. McConnell cited the fact that Obama was more concerned about spending increases instead of balancing the budget, whereas Reid attacked the GOP for its "generalizations" about the fiscal cliff.

With no substantive changes in this acrimonious debate, it's vital for you to prepare themselves for any potential fallout from the fiscal cliff. This includes diversifying your portfolio, and a great way to do this is by putting some funds into cash flow real estate. Rental properties are a sustainable source of monthly income and make for a great risk hedge. Visit today and receive a "Free Game Plan Report" so you can start planning for your financial future.