World News

Obama surrounded by new challenges of economy deterioration in USA

Washington: USA’s re-elected president Barack Obama finds new challenges ahead relating to the deteriorating economy that requires rapid steps to put it back on track. In this perspective, he intends to increase taxes on families having an annual income of $250,000 or more.

Besides this issue, some of the important members of Obama’s cabinet are also on the verge of retirement as they have indicated to take retirement in few months, leaving the re-elected president in a task to find their credible successors to fill the vacancies.

Three most experienced persons of Obama including the Treasury Secretary Timothy Geithner, Secretary of State Hillary Rodham Clinton and Defence Secretary Leon Panetta will stay in Obama cabinet for not more than a few months. The President weighs on the worthy successors to these experienced people who have been fulfilling their duties in the most promising fashion.

Mustering it further, there is another important issue besides finding replacements of cabinet members. Obama emphasises to resolve fiscal issues by increasing taxes and also by cutting down the expenditure and in this perspective a tax increase is expected on families having an annual income exceeding $250,000.

Obama is delved into both problems simultaneously and he needs to resolve them as soon as possible to find a solid start of his final four-year tenure. He, after being elected as President for the second time in a row, will address the fiscal issues today (Friday) in White House.

After winning the election on Tuesday, November 7, Obama clearly indicated that he has plans about immigration reforms, tax code and climate change. He does not want to emulate the former President George W. Bush who announced that he had political capital after winning the election for second consecutive time and his plan was to push to the Privatise Social Security which was rejected by congress and also the general public.

Nevertheless, Democrats and Republicans are together on the issues of tax increase and expenditure cuts as they want to put the economy back on the right track.

John Boehner, Republican House Speaker, said after the election that he is willing to compromise with Obama to accept the higher tax revenue but it should be under right conditions in a bid to reduce deficit.

Changes in taxing issue are expected to be put into practice from January 2013 and it is expected to, as many believe, play a healthy role to support USA’s economy which is declining with a steady pace.

Additionally, two other secretaries have also talked about taking retirement from the office in near future. The Attorney General Eric Holder together with Transport Secretary Ray LaHood, the only Republicans in cabinet, expressed that they would do so after having a talk with president and will make the final decision accordingly.

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