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 [more inside]
"We’re not going to say, 'Give it to me and let my grandchildren suffer.' I think they underestimate seniors when they think that way." But 71-year-old Barbara Sullivan cannot imagine asking people to pay higher taxes. And as she considered making do with less, she started to cry." (slnyt) [more inside]
Where Federal taxes are raised and spent. "Some American states receive more in federal spending than they pay in federal taxes; others receive less. Over twenty years these fiscal transfers can add up to a sizeable sum." A graph of the United States, color-coded to indicate surplus or deficit.
The Program for Public Consultation carried out a different kind of budget poll -- they asked each of their respondents to generate a package of tax increases and spending cuts sufficient for substantial deficit reduction, then averaged the results. The outcome was not what you might expect. The mean package included twice as much tax increase as spending cut: big deficit-reducing moves included substantial income tax increases for the highest brackets and deep cuts in defense spending. Republicans cut less spending than Democrats, as did people who identified as "very sympathetic to the Tea Party." Hardly anybody likes the reduction of the estate tax. Why is the public consensus so different from the Washington consensus? Read the full report (.pdf) Or try the interactive budget exercise.
Bruce Bartlett, senior policy analyst in the Reagan White House, speaks out against Republicans - The monumental hypocrisy of the Republican Party is something amazing to behold. And their dimwitted accomplices in the tea-party movement are not much better. They know that Republicans, far more than Democrats, are responsible for our fiscal mess, but they won't say so. And they adamantly refuse to put on the table any meaningful programme that would actually reduce spending. Judging by polls, most of them seem to think that all we have to do is cut foreign aid, which represents well less than 1% of the budget. [more inside]
Make Work[1,2,3] or: How I Learned[4,5] to Stop Worrying and Love Deficit Spending[7,8,9] (during a general glut at the zero bound) -- When I was a kid, if I was sitting around the house and complained I didn't have anything to do, my mom would always respond the same way. "I'll find something for you to do," and she would. It was make work, she was finding something for me to do on the spot to cure my unemployment problem... [more inside]
Political Fratricide: The GOP is reportedly [+] proposing $15 billion of cuts — or is it $25? — in veterans' benefits between now and 2007, and groups like the Veterans Against the Iraq War are hopping mad. Hell, I imagine the pro-war wing is pretty peeved, too. It's part of a plan with delusions of grandeur to deliver massive tax cuts AND kill the deficit ... you know, the one that did not exist before W was elected, as I understand it ... in six years. The original tip is from Stand Down. The actual status of the cuts is nebulous at this point, however, with the SF Chron reporting that they will likely fail in the Senate as the tax cut is halved and others reporting that the die is not yet cast. The House budget resolution, for metafilter accountants who like these things, is here.