Analyst: Partial deal only way to avoid fiscal cliff

6:51 AM, Dec 27, 2012   |    comments
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EAGAN, Minn. - On the day after Christmas, commerce continued on Cliff Road in Eagan, but you can bet your bottom dollar that the folks waiting on customers are still keeping a close eye on the nation's fiscal cliff.

"Annoyed and disturbed, they can't seem to get it figured out," is how business owner Tammy King described her feelings about the lack of progress in Washington.

King owns Eyeology, an optical and gift boutique on Cliff Road.

"It's just completely two different philosophies on what's going on and I don't know how you compromise that out?" she added.

We asked Hamline University Political Science Professor David Schultz how this cliff might shake out.

"One of two possibilities will occur in the next four days," Schultz said. "One is simply a band-aid or a kicking the can down the road, where they do something very, very minimal. No grand bargaining, no long-term solution, they'll fix something partial."

Schultz said that could mean extending certain tax cuts, but not dealing with some or most of the $109 billion in projected spending cuts. The other possibility, he says, would be Congress does nothing and passes the issue on to the next group of lawmakers.
A long-term comprehensive solution might not be in the cards because there might not be enough time.

"Slim to none at this point. There seems to be no will to do that," Schultz said, before noting that a deal will need to come from Republican and Democratic leaders in the Senate by the end of the week. "If they can reach some kind of agreement and sell it to the President, than what they have to do is figure out how to sell that to the House Republicans."

That's a lot of ifs, ands, or buts and there's not much time.

"Congress in some ways seems to be no different than a lot of Americans in terms of being procrastinators. Everything is done at the last minute," Schultz explained.

You don't have to tell Tammy King that. The business owner continues to wait, along with the rest of the nation.

"From the point of view, from a business model, there are a lot of implications to it all and I'd like to know what they are," she said.

(Copyright 2012 by KARE. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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