Money Roundup: (Fiscal) Cliff Diving Edition

by Michael on Dec 30, 2012 · 2 comments

As I write this, our Congress has yet to come to any sort of agreement on the fiscal cliff issue. On the one hand, we have Republicans who are strongly opposed to (or deathly afraid of voting for) tax increases. On the other hand, we have Democrats who are completely uninterested in “entitlement reform” (read: spending cuts).

There’s still time for me to be wrong about this, but I’ve long expected Congress to let us go over the so-called cliff, thereby letting the Bush era tax cuts expire. From there, they’ll negotiate some (but not all) rates back down, resulting in tax increases for some without anyone having voted for a tax increase.

Sadly, this won’t be enough. As former Romney economic advisor Gregory Mankiw recently pointed out, our fiscal problems run so deep that we’ll likely need to consider tax increases of some sort on a much broader cross-section of Americans, along with serious spending reform, in order to balance the budget going forward.

And now… Here are some articles that caught my eye this past week:

That’s it. Happy New Year.

1 Lance @ Money Life and More December 30, 2012 at 1:31 pm

Thanks for linking back to the CoPF! I appreciate it!

2 Ted Jenkin @ Your Smart Money Moves December 31, 2012 at 9:19 am

Thanks for including my article! Here is to a very happy new year!

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