Fiscal Cliff: For or Against it?

[ElNono]

Boehner put $800 million in revenue on the table and Obama blew up the deal. With the gang of six the dems wanted a trillion in revenue, the republicans offered to meet them half way with $500 million in revenue and the dems walked away from the table. So what do you mean by "bend a little"?

Except that what Boehner put on the table wasn't a tax hike, but a tax reform proposal.

[mercos]

Raising taxes does not harm the economy. Ronald Reagan raised taxes, as did Bill Clinton. Taxes are to low now, especially at the high end of the income bracket where much of the wealth in this country currently resides. On the flip side, we don't need mindless spending cuts. We need reforms to the social safety net that promotes upwards mobility instead of dependence. Republicans love to point out the sovereign debt crisis in Europe, but they always fail to mention that austerity has made it much worse.

[Wild Cobra]

You know the tax increase would pretty much hit everyone, right?

Yes.

I say all or nothing. Stop this class warfare.

[LnGrrrR]

So... then you're for going over the cliff?

[z0sa]

Having read just about everything I can about this so called 'cliff,' it seems the only really major issue with it is its abruptness. My response to that is Happens. Combined with tax reform legislation, we will all be better off in a decade. I think everyone agrees at this point that policy change must ultimately occur; why wait?

[vy65]

The economic havoc (not from tax increases, but from the market crash and recession) that would come about from that happening.

[vy65]

Fair point.

But I think it's one thing to say that where a recession is caused by market factors. It's another when that's caused by the government's inability to balance its check book.

Or it might not make a difference, I dunno.

[DUNCANownsKOBE]

I would accept a 5/1 ratio immediate cuts/immediate tax increases

You're a lot more reasonable than the tea baggers in congress then.

[DUNCANownsKOBE]

There are plenty of flaws to our tax code that aren't gonna be fixed. Changing the top marginal rate isn't gonna do jack , Wild Cobra is 100% correct there.

There are still people who have a portfolio of municipal bonds in the millions or even billions. It's time muni-bond interest is tax exempt only to a certain number. Someone making 7+ figures in muni bond interest every year shouldn't have all of his income sheltered.

Unlimited tax exemptions like muni-bonds as well as cap gains rates and dividend rates that are laughably low are the problem that needs to be dealt with (and no, anyone who thinks Romney was closing those loopholes is kidding himself).

If the marginal rates returned to pre-Bush tax cut levels but exemptions/loopholes people over-utilize were closed and the cap gains rate was raised, that'd be fine. It's never going to happen though.

[coyotes_geek]

There are plenty of flaws to our tax code that aren't gonna be fixed. Changing the top marginal rate isn't gonna do jack , Wild Cobra is 100% correct there.

There are still people who have a portfolio of municipal bonds in the millions or even billions. It's time muni-bond interest is tax exempt only to a certain number. Someone making 7+ figures in muni bond interest every year shouldn't have all of his income sheltered.

Unlimited tax exemptions like muni-bonds as well as cap gains rates and dividend rates that are laughably low are the problem that needs to be dealt with (and no, anyone who thinks Romney was closing those loopholes is kidding himself).

If the marginal rates returned to pre-Bush tax cut levels but exemptions/loopholes people over-utilize were closed and the cap gains rate was raised, that'd be fine. It's never going to happen though.

Anyone who proposes touching the muni bond interest deduction will instantly be shouted down by 50 governors and 1,000 mayors. The guy making 7 figures on interest won't have to say a word. That's one deduction that will never go away.

I'm with you on cap gains though. I'd like to see cap gains rates eliminated entirely with a corresponding reduction in income tax rates.

[boutons_deux]

" it seems the only really major issue with it is its abruptness"

it won't be abrupt, which is exactly what the smart people have been saying all along. The totally deceptive Luntzian "cliff" metaphore is bull .

[Nbadan]

The "abrupt' part kicks in when people stop buying US debt, borrowing costs skyrocket, or the GOP refuses to raise the debt ceiling.