By Robert Kahn – A deal has been made, a financial crash avoided, and near-term growth prospects look rosier. Markets have cheered news of the agreement.
Is such cheer warranted?
Governing by deadline is a terrible way of doing business. Leads to bad policy at home, weakens our status abroad. This deal avoids hard choices and ensures continued policy uncertainty that will be a drag on the economy. It produces a small amount of revenue and makes permanent tax rates that are too low for the long term. For all these negatives, give this deal a grade of incomplete. On to the next cliff. more> http://tinyurl.com/a9ymo7a
- 8 huge corporate handouts in the fiscal cliff bill (sott.net)
- CBO on Fiscal Cliff Deal: $1 in Spending Cuts ($15 Billion) for Every $41 in Tax Increases ($620 Billion) (taxprof.typepad.com)
- Controlling the Future (wnyc.org)