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How should we deal with the fiscal cliff? What do you think will happen?
So Congress made a deal a while back. If they couldn’t come to an agreement about how to balance the budget and reduce the deficit, then there would be automatic budget cuts across the board and the Bush era tax cuts would be removed and everyone’s taxes would go up.
It’s the kind of economic medicine they gave to Greece. It results in a huge recession and steep loss in economic activity. We’d expect to lose as much as 5% of economic output for years. It’s very harsh medicine; more likely to kill the patient than save it.
So we want a gentler way to deal with the deficit. The Democrats want to tax wealthy people at a higher rate and make cuts in spending. The Republicans want to cut wealthy people’s taxes and make very steep cuts in spending that will hurt poor people more than anyone else.
How do you think we should solve this problem?
How do you think our politicians will end up resolving the problem?
If you want to help our President, this website may be a place to start. You can find an action kit to organize people to revoke the tax cuts for the richest 2%.