Originally Posted by Taco John
I agree with Krugman. Obama shouldn't seek a deal. Neither should the Republicans. This "so called fiscal cliff" is a step in the right direction.
Of course, I'd rather see us reduce spending AND reduce taxes. But this will be the first reduction in spending in who can guess how many decades. I'll take it, even if it comes with a tax hike.
I would prefer a "grand bargain", but having the threat of the cliff hanging over Washington's head isn't bad, either. One way or another, we need real progress on the debt. If the automatic cuts come and the Bush tax cuts expire, that's great....I'm fine with that. At least it will result in some real savings for once. Yes, it will lead to a recession, but that's a small price to pay for some long term gains.
Look, everyone's ox is going to get gored. The tax cuts for the wealthy will have to expire...even if they already pay a high share of the overall taxes. Medicare and SS will have to be adjusted. Now that Obama has won re-election, it means vouchers are probably out, but at the very least, eligibility ages are going to go up...albeit incrementally over time, but they will increase, and inflationary increases are going to be tightened....alot. Defense is going to take a haircut.
The fiscal cliff is the best thing that could have happened to this government. Because nothing gets done without a gun to the head. No kicking the can down the road. They need to come up with a package of at least 4 trillion in spending cuts/new revenues. That's the minimum the credit rating agencies see as a viable answer to the debt issues.