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December 04, 2012

Inching Towards a Deal on the Fiscal Cliff?

The White House isn't impressed with the GOP's offer to avoid the fiscal cliff, but The Week notes "this game of fiscal chess has finally started in earnest."

First Read: "While the two proposals seem far apart -- and they are -- look at them when you split the difference between the two. You get $1.2 trillion in revenue and about $450 to $500 billion in savings to Medicare and Medicaid. And then say you throw in some stimulus for the Democrats (unemployment insurance, transportation spending), as well as the cost-of-living adjustments on Social Security for Republicans. That sounds like a pretty serious deal that both sides could live with, though it would look more like a "win" for the White House. Of course, Republicans would have to relent (in some form or fashion) on rates going up, while Democrats would have to acquiesce (one way or another) on the Social Security."

David Brooks: "Republicans have to realize that they are going to cave on tax rates. The only question is what they get in return. What they should demand is this: That the year 2013 will be spent putting together a pro-growth tax and entitlement reform package that will put this country on a sound financial footing through 2040."

Wonk Wire: Fiscal cliff politics point to a deal (eventually).


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