I’m still mulling over the fiscal cliff deal that’s just been ratified by Congress. My one thought so far is that part of the reason some progressives are saying it’s not so bad is that the deal, for the most part, focuses on taxes. And while the deal has the unfortunate element of making permanent a great many of Bush’s tax cuts, which were temporary, and not raising nearly the amount of revenue that might have been raised if the tax cuts had simply been allowed to expire ($3.9 trillion over a ten-year period), it does have the benefit that it raises about $600 billion in revenues, eliminates some tax benefits for the rich (though not nearly to extent that […]

Is it feasible/plausible that Obama will not only take us to the fiscal cliff, but also push us over it and then keep us there? That is, not negotiate any kind of deal with the Republicans at all, not before or after January 1? Unless you assume Obama doesn’t want cuts to entitlements — which I don’t assume; I believe he’s an austerian of Reactionary Keynesianism — think about what he gets if he allows the sequester to go through: higher tax rates, cuts to entitlements, and cuts to defense. That seems like classic New Democrat/Clinton goals. I recognize it would put the economy in danger of recession but Obama’s not up for reelection and modern Democratic presidents have shown […]