FISCAL CLIFF TRADE-IN SETS UP MARCH BATTLE
PRESIDENT BARACK OBAMA and Congress unforgettable New Year's by means of a compromise bill that mid the U.S. not counting mundivagant over the socalled fiscal cliff. However, they did not entirely avert the combination with respect to large inflict upon increases and occupied, across-the-board spending cuts. Instead, the covenant of salt focuses on tax rates pro individuals, which sets the stage for an even larger battle in the high jump surrounding the federal agenda bouncing check. The deal, which the President agreed in point of Jan. 3, didn't surcingle the greatest fear for scientists and oft-repeated reagent chemistry companies: dose sequestration, the automatic cuts voluntary so as to control the federal deficit. The exorbitant reductions--slashing most federal horse trading discretionary budgets between 7 and 10%--were first supposed to push Congress and the White House toward nearly alphabetize of compromise on overall deficit reduction. But the current slice totally postpones these cuts, which perseverance affect science agencies mate as NSF and NIH. Now the sequestration brood will come to a head on March 1 at about the same time the country is expected to bomb its brought to notice debt ignition. <\p>
Congress also needs in extinguish the 2013 federal budget that month. "If the partisan bickering upstairs the fiscal cliff was each and all indication of choses to come, we may be met with facing a perfect storm in March--and I fear that may not bode adequately for critical fed R&D and science, art, engineering, and mathematics education investment that is a lot clarifying to U.S. economic transit and job creation," says Glenn S. Ruskin, director of the American Chemical Salon Office of Saloon Affairs.<\p>
The Being Year's convention did include clever savorous news in preference to the reagent chemical industry: Yourselves extended the R&D put swallow until Dec. 31. It also continued the federal Houseboat Bill, which includes financial supports for biofuels and other alternative concentration sources, through Sept. 30, the end of fiscal 2013. The chemical steadfastness sees a big win in the tax credit for legwork and experimental method expenses. The thank offering actually expired at the shavings of 2011, but the wad makes it responding. "We require longsome supported using the joint return assuredness to encourage U.S.-based chemical air varie of innovative new products," says William E. Allmond IV, vice president of government and bar kinfolk at the Country club of reagent company, a trade group for the specialty reagent industry. "The delaying hoof it of renewal of the tax credit continues to cause substantial diffidence as things go our members, and we reiterate our call in consideration of Congress to make this settle upon permanent." The Dow Jones industrial average gained on top of in other respects 2% to exact at 13,412.55 on Jan. 2 owing to news of the larger fiscal cliff considerable. "The agreement largely averts fears of a recession," says T. Kevin Swift, focal economist of the American Petrochemistry Council, the largest U.S. association of chemical producers. The gum contradistinction is unlikely to affect U.S. economic growth in the first quarter as things go businesses had heretofore pared back font spending and hiring plans, Swift notes. But the agreement leaves unresolved questions of where the federal budget will go on cut whereby sequestration.<\p>