An Emerging Fiscal Cliff Deal?
Posted at 11:45 a.m. on Nov. 21, 2012
Ezra Klein is growing increasingly confident about the “fiscal cliff,” saying that “Washington appears to be preparing to deal with it in a smooth, timely, reasonable way.”
“December 21st, people keep saying. We’ll have a deal by December 21st… Here’s how it could work: The top-income tax cuts expire, as Obama wants. Those cuts only raise about $80 billion in 2013, so they’re a ‘down payment’ on reform. And their cost is that the Democrats identify roughly $80 billion in spending cuts that can be passed into law now — so Republicans also get a ‘down payment’ on the bigger deal. And all this happens in the context of a framework for a larger deal, which includes the promise of tax reform in 2013.”