Originally Posted by Blart
Nice little conspiracy theory, but the fiscal cliff would lead to a bigger deficit, as seen in the UK. It's something we want to avoid.
I'm just trying to figure out why the GOP and Fox news, and pricejj's agree with us that austerity is bad.
The CBO says that by allowing all current legislation to proceed without alteration that the deficit would be cut in half in 2013, primarily by raising taxes on the middle-class.
The 'fiscal cliff' would probably put the U.S. economy in recession in 2013, but would be great for the future solvency of the U.S....as deficits are projected to close rapidly over the next decade.
Allowing the baseline to proceed would generate revenues of 24% of GDP (in time), without raising taxes (or just raising taxes on the 'rich'), would only generate revenues of about 18% of GDP. So what's it going to be, are you going to allow tax rates to rise to pay for your spending?
My guess is no. Why do it, when there is no immediate consequence of running $1T deficits? Print baby, print!