Facing the Fiscal Cliff Solves 77% of the Deficit Problem in One Move – Money Morning - Only the News You Can Profit From

If the Republicrats were smart (and by and large they are not), they would give the President the Tax increases on high income earners that he wants in exchange for FREEZING (not cutting, freezing) all Federal Spending at the 2012 levels for the next 4 YEARS. The freeze would include delay of any further implementation of ObamaCare until 2017.


The rationale is simple; tax hikes will stall the economy and we cannot risk hammering the taxpayers with another 2500 pages of more taxes, regulation and spending until it recovers from this next shock and until the debt curve starts to at least flatten.

Citizens will then see first hand whether or not "taxing the rich" really helps or hurts (or neither) and the Republicans could not be accused of making drastic cuts in the middle of a fragile recovery as 2012 spending levels are way above pre-crisis spending.

Most importantly, they give the President his precious tax increase which he would then own.

As I said, they are not smart enough to do this as I really believe that they'd rather be political punching bags for another 4 years.

Facing the Fiscal Cliff Solves 77% of the Deficit Problem in One Move – Money Morning - Only the News You Can Profit From