The Fiscal cliff

[herbivor]

So everything I'm hearing about the fiscal cliff is everything many people are complaining the government should be doing anyway, cutting spending, raising taxes and trying to reduce the deficit. Obama definitely has the leverage on this compromise. I'll be curious if the GOP finally gives in to raising taxes on the rich as part of their compromise or if a deal will even be made.

[tjts1]

I hope they don't reach a compromise and we go over. I'm perfectly content with the tax increases and spending cuts. I don't think it will cause a recession in 2013, thats just fear mongering from people who have a vested interest.

[LBJefferies]

I hope they don't reach a compromise and we go over. I'm perfectly content with the tax increases and spending cuts. I don't think it will cause a recession in 2013, thats just fear mongering from people who have a vested interest.

Economists are saying that even if it causes a recession, it will be better for the long term health of the economy.

I am going to be a bit cynical and say that they probably will reach some sort of consensus. And by consensus I mean keep the tax cuts and spend more money.

[z31maniac]

I hope they don't reach a compromise and we go over. I'm perfectly content with the tax increases and spending cuts. I don't think it will cause a recession in 2013, thats just fear mongering from people who have a vested interest.

I am too.

However, even the CBO has said raising taxes right now will be detrimental to the economy.

[gwb72tii]

all taxes are regressive in their effects on economic growth
and the "fiscal cliff" isn't even the biggest deal
its the deficit and the messiah's unwillingness to address it
taxing the rich will not pay down the debt/deficit and its not why the messiah wants higher tax rates anyways.
if you listen to him, it's a matter of fairness

and tjts, you apparently live in fantasy land if you think raising taxes and cuting spending won't cause a recession. but its been clear you live in a fantasy land for a long time.

[emerson.]

CBO

Cheddar, bacon, onion?

[smooth]

I haven't been paying attention to politics for the past few months due to moving and working on my e30...but apparently deficits are bad now?

[tjts1]

I haven't been paying attention to politics for the past few months due to moving and working on my e30...but apparently deficits are bad now?

Only when there is a Democrat in the White House.

[z31maniac]

Only when there is a Democrat in the White House.

Bush II spent entirely too much and enacted two of the worst programs in history with regards to Medicare and Education and two needless wars.

Some of us dislike both sides vs buying the party rhetoric.

[gwb72tii]

Bush II spent entirely too much and enacted two of the worst programs in history with regards to Medicare and Education and two needless wars.

Some of us dislike both sides vs buying the party rhetoric.

[uofom3]

I am going to be a bit cynical and say that they probably will reach some sort of consensus. And by consensus I mean keep the tax cuts and spend more money.

This.

The only thing that matters is what happens in 2013; things that take effect 10 years out do not matter - and it's important to remember much of this is spread out.

The majority of the concern is tied to the "sequester" which is ~65 billion out of the economy in 2013. This equates to roughly 2/3's of 1% of GDP - which is hardly alarming.

There is also the AMT patch which would make AMT impact about 35% of taxpayers. They have patched this every year for many years and there is no reason to believe they won't again.

They will politicize this, and then kick the can down the road... So I won't lose any sleep over it.

[LBJefferies]

They will politicize this, and then kick the can down the road... So I won't lose any sleep over it.

That is precisely why YOU SHOULD be losing sleep.

[gwb72tii]

Well LB, kicking the can down the road is EXACTLY what rajoy in Spain, hollande in France, the ECB and IMF with greece, and big Ben bernanke have been doing.
There is no painless way out for the western developed economies for years of deficit spending, endless unpaid for social programs, subsidizing sound fiscal policies with credit cards (literally), and the coming end of cheap money being lent to us by foreign creditors.
Obama will delay the pain until the world refuses to lend us $ at current 0%, and in some cases, negative % rates on their foreign exchange holdings.
Then interest rates rise and it's over, done, toast.
So live well my friend, while you can.
The messiah in DC will accelerate the big bang moment, and then the students, the poor(when social programs can't be funded), and the rich elites will finally get it.

[joshh]

I really hope the Republicans play ball this time so we can prove once and for all that no matter how much money you give this size of government, it won't help. It will never be enough. And that's exactly what this administration will claim when it doesn't work.

Think about it...16 trillion dollars....

Way too much talk about taxes and way too little talk about fixing the economy. Fixing the economy will raise revenue far faster than raising taxes and potentially put the economy into another recession.

[rwh11385]

Way too much talk about taxes and way too little talk about fixing the economy. Fixing the economy will raise revenue far faster than raising taxes and potentially put the economy into another recession.

How would you fix the economy?