I'm not sure what I think about the so-called fiscal cliff. Will going over the fiscal cliff or not really make any difference as long as we keep spending way too much money?
What I do know is that it has more to do with politics than economics.
"It's now clear that Team Obama wants higher tax rates and revenue-raising tax-deduction caps to meet their $1.6 trillion revenue target. Spending cuts and entitlement reforms are vague to nonexistent. In fact, it could be that Obama not only rejects the across-the-board budget sequester, but that he actively seeks to raise spending, not cut it.
I guess it stands to reason that if you puff up his $800 billion revenue increase from last year, and double it to $1.6 trillion this year, the money will be spent. The government will grow larger."
So maybe this idea of Rand Paul is the best idea of all.
"Sen. Rand Paul, who may have the best idea, told me in an interview this week that he's prepared to pin the tail on Obama's tax-and-spend donkey. 'In the Senate,' Paul said, 'I'm happy not to filibuster it, and I will announce tonight on your show that I will work with Harry Reid to let him pass his big old tax hike, with a simple majority, if that's what Harry Reid wants, because then they will become the party of high taxes, and they can own it.' "
GOP Strategic Retreat? | RealClearPolitics