News
Washington Times | Push Obama over the fiscal cliff
Unless the fiscal cliff dilemma is resolved within the next two weeks, everyone’s taxes go skyward. Rich and poor alike will hand over $500 billion more to the Internal Revenue Service. The across-the-board spending reductions will amount to about $110 billion, with more than half of the amount coming from defense. It’s enough to plunge an already sputtering economy into a deep recession.
National Journal | The Fiscal Cliff Plan B for Republicans
Week five of the fiscal-cliff negotiations came and went without any resolution, as Republicans increasingly looked for a backup plan to help them avert the fiscal cliff, save face on taxes, and give as little ground as possible politically.
Politico | Fiscal cliff: 2014 budget already delayed
The White House confirmed to POLITICO Sunday that it has deliberately slowed preparations for President Barack Obama’s fiscal 2014 budget until it has a better fix on the current talks with Republicans in Congress.
Econ Comments & Analysis
NY Times | That Terrible Trillion
As you might imagine, I find myself in a lot of discussions about U.S. fiscal policy, and the budget deficit in particular. And there’s one thing I can count on in these discussions: At some point someone will announce, in dire tones, that we have a ONE TRILLION DOLLAR deficit.
Heritage Foundation | The Economic and Fiscal Effects of the Obama Tax Plan
Nearly historic increases in federal personal income and payroll taxes combined with modest reductions in federal spending are set to begin on January 1, 2013. This is the “fiscal cliff”: a combination of fiscal policy changes that many analysts believe will send the U.S. economy into a recession.
Blogs
WSJ | Avoiding Fiscal Cliff Won’t Spur Growth
A majority of economists surveyed said lawmakers will avoid across-the-board tax hikes and steep government spending cuts but say averting the fiscal cliff will do little to propel stronger economic growth immediately.
Heritage Foundation | Deficit Spending and Debt: Lessons from Japan
Deficit spending does not foster economic recovery. The U.S. and the world need to recognize the stagnation and inter-generational inequality caused by such spending, and for reference, they need not look further than Japan’s recent history of deficits.
Market Watch | Hopes rise for pre-Christmas fiscal cliff deal
Will this be the week that Washington cuts a deal to avert the fiscal cliff? While nobody knows for sure, House Speaker John Boehner and President Barack Obama reportedly have “never been closer to a deal” after Boehner said he’d accept higher taxes on incomes of $1 million and above and offered a one-year debt ceiling increase.
