WSJ: Fiscal Cliff Forces All Sides to Jockey
Although super storm Sandy may have caused a brief pause in some presidential campaign activities, jockeying on the so-called fiscal cliff continues. With Taxmageddon and the defense sequester looming, the Wall Street Journal reports, “Lawmakers, CEOs, business groups and charities are scrambling to shape the debate.” WSJ continues:
Party leaders are waiting to see who holds more leverage after the elections. If Republican presidential candidate Mitt Romney is elected, GOP lawmakers will seek to postpone the big decisions until after he takes office next year.
If President Barack Obama is re-elected, the White House and congressional Republicans would likely clash immediately because they disagree on many issues, particularly the Bush-era tax cuts that expire at year’s end. Many Republicans want to extend the tax cuts. Mr. Obama has promised he would extend them only on couples’ income below $250,000, allowing tax rates to rise on income at that level and above. It is possible negotiations would extend into the next Congress.
The coming battle has prompted party leaders and various interest groups to lay out their starting points for negotiations now.
The most obvious starting point is that taxes should not go up – not in this economy, not in any economy.