Negotiating a tax deal before fiscal cliff

This post was written by marc on November 26, 2012
Posted Under: Letters to the Editor

Letter to the Editor

Since we are facing the “fiscal cliff” that Congress artificially created the debate is about what is and what isn’t on the table. There are some things that can be done to make a deal happen and give both sides some political cover.

For example, it’s time for Obama to cave in on the Keystone Pipeline. This pipeline isn’t something that he’s really against and it’s just moving oil around so it’s really not a bad thing for the environment. But the Republicans have artificially elevated its importance and if Obama gives in it will give them an artificial ego boost as well as creating a lot of jobs.

During the elections Romney suggested the idea of caps on deductions limiting how much billionaires can write off. This is an idea that sounds good to me that Obama and the Democrats should agree to. Both sides should agree not to give the military more money than they are asking for. This will allow both sides to look good. I also think the payroll tax holiday should end because it’s really robbing Social Security and should be replaced with some other policy like an exemption for the first $10000 of income.

If Obama and the Democrats agree on these issues then that could create the political cover Republicans need to allow the Bust tax cuts to expire for the rich. This is the kind of deal that should work for both sides and make economic sense. If they get that far they can then focus on the spending cuts in a second round of deficit reduction.

Comments are closed.