At this point, I’m pretty convinced that the lynchpin issue to be resolved on the fiscal cliff–the one from which all else will flow–is whether to raise the new tax renvenue that both sides now agree is needed from either higher rates or broader base.
The ultimate outcome might involve some measure of both, but that still means R’s will have to accept rates going up the top 2% of households.
So you may be thinking: since revenue is revenue, does it really matter whether we get it through higher rates or a broader base? It does…and that’s the subject of a piece I wrote yesterday for MSNBC.com…check it out.
My old colleague Peter Orszag makes similar points today in a Bloomberg oped.