What's to like and what's not to like about the fiscal-cliff deal
So reasonable left-leaning folks are disagreeing, even more than usual. Is this week’s fiscal-cliff deal any good?
The deal, which the president signed into law Wednesday, includes the following (among other things):
- Higher tax rates for people earning $400k+
- Higher taxes on estates worth $5m+
- A five-year extension of three tax credits aimed at low- and middle-income people
- A one-year extension of unemployment insurance
- Higher payroll taxes across the board
- A two-month delay on the sequestered automatic spending cuts
- No action on the debt ceiling
Items one through four are modestly positive moves toward economic fairness; the fourth in particular is also great economic stimulus. Five is regressive, a recovery killer, and a real shame. Six and seven are more can-kicking, setting up more ugly showdowns. And the deal did little to address either of our big-picture economic issues (unemployment in the short term and deficits in the long term).
