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Has nobody realized that Democrats, despite their rhetoric, would have no problem with the nation falling off the fiscal cliff? Sure, in the short term (the next 5 years) we'd be stuck in a recession and there would be nothing but problems for the American people.
But they would also get what they want--a big tax hike and massive cuts to defense spending--and they would be able to blame everything on Republicans who didn't want to tax the rich.
It's like a Democrat strategist's wet dream.
Sources tell me, if done right, this would far exceed the revenues a tax "rate" hike would generate. But even if you do raise rates on top earners and limit deductions, that barely moves the needle on our national debt and deficit. Entitlement spending is the main issue, yet so far there has been no discussion of spending cuts.
The president has been meeting with labor leaders and CEOs to discuss how to avert the fiscal cliff. Most economists say failure to do so is the surest way to drive the U.S. back into a recession in 2013. Yet we do not appear close to a compromise solution. Republican Speaker John Boehner has said he is open to more tax revenue, but not via higher tax rates. He wants to close loopholes.
The only thing I can imagine is that this is going to get ugly, fast. Put on your parachutes, we're going over.