The fiscal cliff: Worst-case scenarios

posted by
December 12, 2012
Independent Institute
by Randall Holcombe  
Posted in Commentary

"he fiscal cliff is dominating the news these days, but mostly it is political theatre, and as I said before, I don’t think we will be going off. All parties want a resolution, so even if the fiscal cliff isn’t resolved prior to the new year, it will be soon after, with changes retroactive to January 1. But, what if I’m wrong? If we actually go off the fiscal cliff and no new agreement is made, the tax structure would go back to what it was at the end of the Clinton era, and federal expenditures would be cut by less than 1%. How bad would that be, really?" (12/11/12)  

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