Choose Your Own Fiscal Cliff Adventure

[scott]

http://www.washingtonpost.com/blogs/wonkblog/wp/2012/12/20/choose-your-own-fiscal-cliff-adventure/

I was able to get to +4.16% GDP and a $17 billion surplus.

I left Obamacare repeal and a Value-added-tax alone, because I don't think either are politically feasible and not worth considering.

[ErnestLynch]

The problem is that sequestration in itself was flawed. It should have been across the board cuts, by %, till the budget was balanced. That's what the budget should always be. They can't pass a spending bill unless they fund it AT THE TIME the spending bill is passed. Every spending bill must have a revenue bill attached to it. It's the only way.

[boutons_deux]

ignorant fuck

[spursncowboys]

**I'm retarded** . Good find however. Did you have your students do it?

[baseline bum]

That's pretty sad. I tried to answer it like a Republican and got a $360,000,000,000 deficit for 2021, while answering it like a Democrat I got a $281,000,000,000 deficit for 2021.

[Wild Cobra]

That's pretty sad. I tried to answer it like a Republican and got a $360,000,000,000 deficit for 2021, while answering it like a Democrat I got a $281,000,000,000 deficit for 2021.
I choose not to play. The options were too limited.

[spursncowboys]

Here's mine. Out of the red in '15

http://www.washingtonpost.com/blogs/wonkblog/wp/2012/12/20/choose-your-own-fiscal-cliff-adventure/?ezrafiscal=10000111111111000111010011101000111

[TDMVPDPOY]

hey guys

is there a agency.........................that rates the rating agencys?

[symple19]

+4.76

+496 billion

Let ALL the Bush tax cuts expire, repealed Obama-care/ind mandate, instituted the Public Option

also repealed the defense/non-defense cuts, extended payroll/UI, Slowed Federal Pay growth, and implemented all of the stimulus measures

haha, that was fun

[Wild Cobra]

Static models are wonderful, aren't they. With the limited insight of options, anyone think the model is an accurate prediction?

[symple19]

http://www.washingtonpost.com/blogs/wonkblog/wp/2012/12/20/choose-your-own-fiscal-cliff-adventure/

I was able to get to +4.16% GDP and a $17 billion surplus.

I left Obamacare repeal and a Value-added-tax alone, because I don't think either are politically feasible and not worth considering.

That's the problem with government today. Nobody wants to do the right thing even when it's right in front of their nose.

Was much more fun for me to do the things those asshats should be doing. Unfortunately, you're correct that those two items mentioned above just won't happen.


Thanks for sharing :tu

[symple19]

Static models are wonderful, aren't they. With the limited insight of options, anyone think the model is an accurate prediction?

:lol

probably not. was still fun, though

[DUNCANownsKOBE]

Static models are wonderful, aren't they. With the limited insight of options, anyone think the model is an accurate prediction?

I personally don't.

[Wild Cobra]

Fun?

Was there a single option you were for without comprise?


Repeal defense sequester/cap
This policy, included in the Budget Control Act of 2011, will take a hatchet to military spending starting January 1 (unless you reverse it). Discretionary defense spending, excepting pay and a few other categories, will take a 9.4 percent across-the-board cut, and mandatory spending will be cut 10 percent. That means a 10 percent cut in retiree benefits, a 10 percent cut in missile purchases, a 10 percent cut on tanks, and so forth.
There is probably more than 10% you can cut from the defense budget. However, you don't cut retirement benefits already expected. Any such changes need to be grandfathered in, which means no change for 20 years on this part of the savings.


Repeal nondefense sequester/cap
As with defense spending, non-defense discretionary spending takes an across-the-board cut. It's slightly smaller, however, at 7.4 percent, and safety net programs like food stamps and Medicaid are exempted. However, the cuts could be devastating because there is little left to cut. For example, it's unclear that essential agencies like the Census or the National Institutes of Health could survive a 7.4 percent cut in their budgets.
I'd say far more than this percentage can be cut as well, yet they exempt food stamps? Hell no. That program is bloated. It should be reduced by at least 25%.

Extend Bush cuts (upper income)
These are the cuts passed in 2001 and 2003 that apply to income over $250,000, including lower brackets and more favorable treatment of capital gains and dividends income. Note that these options assume the Alternative Minimum Tax is patched.

Extend Bush cuts (low/middle income)
These are the cuts passed in 2001 and 2003 that apply to income under $250,000, including lower brackets, expanded credits, and additional benefits. Note that these options assume the Alternative Minimum Tax is patched.
I would suggest an option of raising the current rates on all brackets by 1%. 10% becomes 11%, 15% becomes 16%, etc.

Equal suffrage. No class warfare.

Extend Payroll/UI
Extensions to unemployment benefits are set to expire at the end of the year, as is the payroll tax holiday and various stimulus tax breaks. Extending them could aid the recovery. Note that these options assume the Alternative Minimum Tax is patched.
Historical data shows that the economy recovers after people realize they will run out of unemployment benefits. Funny thing, they actually go back to finding jobs. As for the payroll taxes, I say increase them gradually. Perhaps by 0.2% per quarter, until they are at 7%. Currently, it's 4.2% from the original 6.2%. I say go to 4.4%, then 4.6%. etc. No sudden change by 2% though, as that will be a shock to most peoples net income stream. This does nothing to reduce the deficit as it is a different pie.

As for most of these saying "assumes the alternate minimum tax is patched?" This should be a separate thing as well. This whole option thing should have broken each down individually, and with more choices.

[Wild Cobra]

I personally don't.
I have always said they are inaccurate. Great for the politicians to food the general public though.

[baseline bum]

+4.76

+496 billion

Let ALL the Bush tax cuts expire, repealed Obama-care/ind mandate, instituted the Public Option

also repealed the defense/non-defense cuts, extended payroll/UI, Slowed Federal Pay growth, and implemented all of the stimulus measures

haha, that was fun

I'm kind of confused about how the public option would work without the mandate. Are you saying you would want the public option to be able to kick people out for preexisting conditions? Because otherwise, the public option would be nothing more than an extremely expensive form of naked welfare.

[TDMVPDPOY]

america should just default

pull out every investment in china to cheaper foreign labor countries or just head south the border.....investing into south the border could help solve ur illegal aliens bullshit