There's been a lot of talk in the US media about the "Fiscal Cliff" and the "Grand Bargain
" What are they?
The "fiscal cliff" is a confluence of three legal changes taking effect Jan. 1: the expiration of a payroll-tax cut, the expiration of the Bush-era tax cuts, and the advent of mandatory spending cuts known as "sequestration." Fiscal Cliff 101: 5 Basic Questions Answered
. What's Happening: Fiscal Cliff Explained
Not all are convinced of the necessity of Congress' self-created problem
: 6 Reasons
why this Fiscal Cliff Is A Scam
. Large numbers get thrown around
, making it hard to see what exactly is at stake.
How did we get here? Fiscal Cliff Reality Check: Are US Taxes Low Or High
? "It’s simply a fact that the fiscal cliff was created in response to GOP threats to force the U.S. government to default on its obligations."
Or did we already go over the cliff years ago
Who is involved? President Obama
; Speaker of the House John Boehner
and House Republicans
; Minority Leader Nancy Peolsi
and House Democrats
include the Gang of Six and the Progressive Caucus
. Even the CEO of Goldman Sachs has weighed in.
The "Fix the Debt"
group of is concerned about the growth of deficit spending
, while 'the Left is divided'
on the Grand Bargain - or the Great Betrayal
What are the sides? The White House's Fiscal Cliff Proposal
, delivered by Treasury Secretary Tim Geithner
which Speaker Boehner
calls "not a serious proposal."
Obama's opening bid
and the Republican response is all part of the negotiations.
The White House plan "is a start, not an end."
Obama's proposal appears to be a break from the negotiating in the middle
path that he has taken before, though Robert Reich ( who recommended aiming high
) thinks not much has changed
. And Republicans have yet to make any proposals of their own
, preferring to follow the President's lead
. The Economist has a brief summary.
Paul Krugman characterizes most of those calling for deficit reduction "hawks and hypocrites"
. And its always good to remember that elections have consequences
The Long Treacherous Climb Up The Fiscal Cliff. The so-called fiscal cliff is one of those rare issues where everyone has an incentive to predict the worst. Barack Obama thinks it will force Republicans to accept higher taxes on the rich, Republicans think they can back him into a corner and force him to cave to their demands as they did two years ago, and businesses and consumers are wary that the still-fragile economy may take a nosedive. Figuring out how this will play out is Washington’s favorite parlor game right now, so let’s play.
What will happen now? Obama pushes for stimulus in fiscal cliff deal
. 10 easy way to avoid the fiscal cliff
. Three Votes Could Make Or Break Fiscal Cliff Deal
. Lobbys, like the AARP
, the IFA
, and various unions
, are gearing up. One paper predicts
'lower GDP and higher unemployment' if no deal is struck. The Weekly Standard says Obama's Plan Will Raise Taxes On Small Businesses, Lower Them For Corporations
. The White House is apparently worried there won't be a deal by 2013
, since prominent politicians like Senator Alan Simpson and Senator Erskine Bowles say falling off fiscal cliff is 'likely.'
But perhaps the President should reassure Americans they will survive the fall.
But what does the public really want?
To "cut military waste, not charitable deductions"
? How Obamacare Came To The Fiscal Cliff
and The Grand Cynicism Of The Grand Bargain
. A failure to reach a bargain may spur 'bond vigilantes' to move, but that may not be a bad thing.
Will the Romney-Ryan plan live on?
Perhaps a Obamney plan?
Of course, the military-industrial complex will be largely spared
What does this mean for you? The Congressional Budget Office outlines options and consequences
. Could the 'Fiscal Cliff' Push The US Into A Recession?
. But if entitlement programs are your top priority, the fiscal cliff is your friend
. 12 Ways the "Grand Bargain" could screw the poor
. The mortgage-interest deduction could be on the table.
City Journal writes: Localities should worry less about Washington’s spending cuts than about how their own state governments handle them.
Costco is paying a special dividend
, part of 10 tax moves to make now
. And maybe we'll get some tax simplification
Disney's Bob Iger's position has spawned a hashtag: 15 Best Star Wars Fiscal Cliff Tweets