Fiscal Commission at Impasse over Debt Reduction - TheFiscalTimes.com
Fiscal Commission at Impasse over Debt Reduction - TheFiscalTimes.com
This report is a bit dated, since the Fiscal Commission's co-chairs released their reports today. They were panned by activists from both sides, who probably would not have liked any result. The test is whether this packages is based on preliminary consensus or is simply based on a staff report. If it is the former, it could very well become law under the right conditions. If it is the latter, it is an interesting example of an incremental "school solution" which would likely work if foreign holders of the national debt start dumping dollars.
Whether these recommendations are DOA or not has as much to do with the demands of our creditors as it does with domestic consensus. If bond markets crash because this report is considered just so much waste paper, they will get a second look. The only realistic alternative, aside from more radical changes (like the imposition of a VAT, is the expiration of the Bush Tax cuts - not just on the wealthy, but on the middle class as well.
This report is a bit dated, since the Fiscal Commission's co-chairs released their reports today. They were panned by activists from both sides, who probably would not have liked any result. The test is whether this packages is based on preliminary consensus or is simply based on a staff report. If it is the former, it could very well become law under the right conditions. If it is the latter, it is an interesting example of an incremental "school solution" which would likely work if foreign holders of the national debt start dumping dollars.
Whether these recommendations are DOA or not has as much to do with the demands of our creditors as it does with domestic consensus. If bond markets crash because this report is considered just so much waste paper, they will get a second look. The only realistic alternative, aside from more radical changes (like the imposition of a VAT, is the expiration of the Bush Tax cuts - not just on the wealthy, but on the middle class as well.
posted by Michael Bindner at 7:48 PM
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