In a previous post Fiscal cliff and the frenzy I pointed to the rush of reporting the day after the election. Some of these articles should be in the op-ed section instead of reporting.
“Avoiding hard decisions could have grave consequences, analysts say…”
Few expect Washington to replicate the scope of the Bowles-Simpson plan. Though it is widely praised, its $4 trillion in 10-year savings includes major changes to Social Security opposed by liberals and an aggressive new tax code that would generate far more revenue than most conservatives could stomach.
About half the new savings would come from reversing part of the massive tax cuts that, along with the collapse of tax collections during the recent recession, are a major cause of current budget problems. The rest would come from lower spending, including on Social Security and Medicare, forecast to be the biggest drivers of future borrowing.
Much of the public dispute over the fiscal cliff has centered on the president’s demand that taxes rise for the wealthy. But entitlements are an essential element of the discussion because they are the main drivers of the nation’s borrowing problem over the years to come.
After four years of sheer obstructionism — behavior that was called out during the presidential campaign season — most Americans are pointedly aware of who is willing to further wreck the nation’s economy and who would like to rescue it.
Fifty-three percent of the nation believes that if a fiscal agreement isn’t reached by New Year’s Eve, Republicans in Congress are the ones to blame, reports a new Washington Post-Pew Research Center poll. It also reports that only 38 percent believe that the president and the Republican Congress will reach a deal.
If those pessimists are right, then in an effort to assure a long-term deficit reduction, a series of mandatory and draconian spending cuts will jump off in less than seven weeks, coupled with the expiration of a slew of tax cuts.