A Good Deal Will Raise Tax Rates, Fix Entitlements
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Dec. 5 (Bloomberg) -- Although it isn’t yet time to panicabout the fiscal cliff, negotiations so far aren’t exactly goingwell. The Republicans are committing themselves to anunsustainable principle of no marginal tax-rate increaseswhatsoever. And the Democrats are failing to seize the moment tomake progressive reforms to Medicare and Social Security.
There’s still time to come to an agreement to prevent themore than $600 billion in federal spending cuts and taxincreases scheduled to take effect in January while also raisingthe debt limit, but both sides will need to get out of the boxesthey have put themselves in.