Monday, November 19, 2012

Atlanta Fed Spills the Beans on the "Fiscal Cliff"

It's really about increasing overall government revenue. Here's the Atlanta Fed:
The fiscal cliff heavily weights deficit reduction in the direction of higher taxation. 
Over the first five years off the cliff, almost three-quarters of the deficit reduction relative to the CBO's no-cliff alternative would be accounted for by revenue increases. Only 28 percent would be a result of lower outlays:

The discussion about alternatives to "going over the cliff" is also about raising taxes.


4 comments:

  1. It was always going to be about raising taxes. They just needed to figure out what form the CYA was going to take.

    It doesn't hurt that most of the citizenry has by this point been conditioned to believe that any form of spending cut is equivalent to the most virulent form of heartlessness and stupidity if not outright treason. That is from the left and the right.

    Sigh...

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  2. Isn't this the perfect scenario for stagflation? Obamacare reducing jobs and hours. Higher taxes reducing jobs and hours. Money printing resulting in inflation. Am I missing something?

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  3. Perfect storm! Can anyone say Argentina? I can.

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