Let’s All Jump Off the Fiscal Cliff – Bloomberg 12-06-12

Salient to Investors:

Bradley Belt and Jared Bernstein at Milken Institute, William Gale at Brookings, Phillip Swagel at Milken Institute and University of Maryland say:

  • Avoiding the fiscal cliff may be beyond the strained US political system – even kicking the can down the road requires one side to give ground on a core belief.
  • Let all tax cuts expire and temporarily offset the negative economic impact with temporary tax and spending measures to boost near-term demand without making choices between the agendas of the two parties.
  • Give a 1-yr, $200 billion tax refund to support household spending.
  • Spend another $50 billion on roads, public schools, and scientific research.
  • Give $50 billion for fiscal relief for states.
  • Extend the patch that prevents AMT from hitting tens of millions of households and the Medicare “doc fix” that averts sharp cuts in payments to doctors serving seniors.
  • Turn off the sequester put in place in August 2011 that means some $100 billion in automatic spending cuts.

Read the full article at http://www.bloomberg.com/news/2012-12-07/let-s-all-jump-off-the-fiscal-cliff.html