Congress far from warding off crisis

SOUTH HADLEY, Mass. (WWLP) - Government agencies brace for massive spending cuts, following an 11th hour deal that raises income and estate taxes.

“I just feel like we are in such a divisive government, it's really hard to find common ground. But where I stand is I feel like we have to pay taxes,” said Candace Bradbury-Carlin of Deerfield.

The nation’s $16 trillion dollar debt is estimated to increase another $4 trillion in the coming months.  But experts say raising the federal borrowing limit is just scratching the surface, as the so-called ‘fiscal cliff’ deal is far from the solution.   

“The total debt burden is in excess of $200 trillion, I mean that's the debt if you just look at government forecast of revenue and expenditures. There's no way to raise taxes to cut spending in this quick little fix,” said Professor of Economics at Mount Holyoke College James Hartley.  

Hartley says the American Tax Payer Relief Act of 2012 will only generate $600 billion in revenue over the next decade.  He told 22News the real issue lies in the rate of retiring baby boomers, entering the soon-to-be bankrupt Medicare and Social Security systems.

“We're looking at a $90 trillion deficit in those two programs, that it will all be coming up with in the next two decades. So those numbers dwarf anything we are talking about right now,” said Hartley inside his Skinner Hall office.

Hartley says, moving forward, lawmakers need to develop a plan to tackle the structural overhaul needed to balance the budget; particularly within social service programs.  All the more reason voters feel ‘fiscal cliff’ talks are part of a band-aid approach that will go nowhere fast. 

“I think it's going to affect all of us in one way or another, especially my grandkids. You can't have it both ways, you can't cut taxes and also cut your spending,” said Joe Gianesin of Amherst.

Which brings us to our 22News Poll Question of the day.

Do you approve of the deal passed to avoid the fiscal cliff? Click your vote, results will air tonight on 22News at 11.