Would Democrats regret walking off the fiscal cliff?
Senate Democrats say they'll let devastating tax hikes and spending cuts hit at year's end if Republicans hold out against raising taxes on the rich
Congressional Democrats began digging in their heels this week over tax hikes and deep spending cuts due to hit at year's end. Sen. Patty Murray, a powerful Democrat from Washington state, said Monday that her party is prepared to let the country go off the so-called fiscal cliff unless Republicans agree to raise tax rates for the wealthiest Americans. Republicans want to extend Bush-era tax cuts for everyone, while President Obama wants to raise rates for people making more than $250,000, and other Democrats want to set the threshold at $1 million. Economists warn that the fragile recovery will crumble if the tax cuts expire just as automatic spending cuts outlined in last year's debt-reduction deal take effect. Is this a bad time for Democrats to play hardball?
Yes. Democrats — and everyone else — will pay a high price: Democrats might regret their tough talk, says Jeanne Sahadi at CNN. The two parties will probably work out a temporary fix by year's end, but this high-stakes political game of chicken is already "becoming a problem for the economy." It's part of why defense contractors, who'll be especially hard hit by the $110 billion in 2013 spending cuts, are freezing hiring and preparing pink slips. Uncertainty will also "cause tumult in the stock market" at the worst possible time.
"Fiscal cliff fight is on, and economy suffers"
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Actually, Americans will blame Republicans if disaster comes: There's one excellent reason for Democrats to stick to their guns, says Chris Cillizza at The Washington Post: "The public is on their side." In a new Pew Research Center poll, political independents, by more than a 2-to-1 margin, said "ending the tax cuts would be helpful to the economy." If Republicans hold out to protect millionaires and Congress plunges off the cliff, "Obama and Democrats are well positioned to win."
"Why Democrats are willing to walk off the fiscal cliff"
Nobody wins without a compromise: Neither side wants to look weak by giving in before the November election, says Gatehouse News Service in an editorial. But the "political train wreck" we face if Democrats and Republicans can't make a deal after that could be disastrous for the economy. Obama should follow up his proposal to end the tax cuts for those making more than $250,000 with cuts on spending and entitlements, and Republican challenger Mitt Romney should identify the tax loopholes he'd close to save money. Refusing to make a good-faith effort is not an option.
"Obama, Romney must face the fiscal cliff"
Read more political coverage at The Week's 2012 Election Center.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
'Elevating Earth Day into a national holiday is not radical — it's practical'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published
-
UAW scores historic win in South at VW plant
Speed Read Volkswagen workers in Tennessee have voted to join the United Auto Workers union
By Peter Weber, The Week US Published
-
Today's political cartoons - April 22, 2024
Cartoons Monday's cartoons - dystopian laughs, WNBA salaries, and more
By The Week US Published
-
Arizona court reinstates 1864 abortion ban
Speed Read The law makes all abortions illegal in the state except to save the mother's life
By Rafi Schwartz, The Week US Published
-
Trump, billions richer, is selling Bibles
Speed Read The former president is hawking a $60 "God Bless the USA Bible"
By Peter Weber, The Week US Published
-
The debate about Biden's age and mental fitness
In Depth Some critics argue Biden is too old to run again. Does the argument have merit?
By Grayson Quay Published
-
How would a second Trump presidency affect Britain?
Today's Big Question Re-election of Republican frontrunner could threaten UK security, warns former head of secret service
By Harriet Marsden, The Week UK Published
-
'Rwanda plan is less a deterrent and more a bluff'
Instant Opinion Opinion, comment and editorials of the day
By The Week UK Published
-
Henry Kissinger dies aged 100: a complicated legacy?
Talking Point Top US diplomat and Nobel Peace Prize winner remembered as both foreign policy genius and war criminal
By Harriet Marsden, The Week UK Last updated
-
Trump’s rhetoric: a shift to 'straight-up Nazi talk'
Why everyone's talking about Would-be president's sinister language is backed by an incendiary policy agenda, say commentators
By The Week UK Published
-
More covfefe: is the world ready for a second Donald Trump presidency?
Today's Big Question Republican's re-election would be a 'nightmare' scenario for Europe, Ukraine and the West
By Sorcha Bradley, The Week UK Published