The Fiscal Cliff Deal Continues to Take Shape
Posted at 8:45 a.m. on Dec. 10, 2012
Ezra Klein notes that a “fiscal cliff” deal is emerging if you only pay attention to the “offers, counteroffers and red lines proposed by Boehner and President Obama.”
On taxes: “The final tax deal will raise rates a bit, giving Democrats a win, but not all the way back to 39.6 percent, giving Republicans a win. That won’t raise enough revenue on its own, so it will be combined with some policy to cap tax deductions, perhaps at $25,000 or $50,000, with a substantial phase-in and an exemption for charitable contributions.”
On spending: “There will be a variety of nips and tucks to Medicare, including more cost-sharing and decreases in provider payments, and the headline Democratic concession is likely to be that the Medicare eligibility age rises from 65 to 67.”
Matthew Yglesias doesn’t think that this deal “makes any sense and I don’t think it will be made.”
