Comments on: The Fiscal Cliff: Risks and Leverage

By: Bill Gatliff

Bill Gatliff — Wed, 20 Jun 2012 21:24:24 +0000

I for one would love to see a post about what an individual or small business owner (I am both) could do to mitigate their circumstances should the “off the cliff” scenario actually play out. Should I move my investments over to cash? Buy gold? Guns and water?

An interesting followup piece would be to take note of which of our Representatives are heeding Mr. Bernstein’s advice, actually. But that might be more of a job for an investigative journalist.

By: Kathleen Wright

Kathleen Wright — Wed, 20 Jun 2012 16:45:54 +0000

How do you feel about play or pay deals…which might allow the 1% to choose between voluntary funding of a government initiative or paying of a minimum tax? I realize that this is what tax deductions should address, but we have so many huge areas of need that might be supported by private-public partnerships. It might be a way to start the conversation.

By: davesnyd

davesnyd — Wed, 20 Jun 2012 10:51:24 +0000

You say you get it– but your article only brushes on the real crux of the issue.

Both sides see that we have a budget problem.

One side says that the way to fix it is minor changes in most Federal spending (with little or no change to defense spending), small changes in healthcare spending (or, more to the point, growth rate), closing “loopholes” in existing corporate taxes, and significant increases to some tax rates.

The other side says that the only way to fix it is to further lower taxes, slash (really, eliminate) all non-defense spending, and increase defense spending.

They’re too far apart and both are probably wrong. Defense spending needs significant reductions. The tax code needs an entire and transparent overhaul. Healthcare costs need to have significant cost reductions (or, at the very least, a zeroing of their real time derivative).

Without reducing healthcare costs, bringing defense spending into some reasonable multiple of our “competition”, and rationalizing our tax system, we just won’t address the underlying issues.

And neither party is willing to say it.