Salient to Investors:
Bradley Belt and Jared Bernstein at Milken Institute, William Gale at Brookings, Phillip Swagel at Milken Institute and University of Maryland say:
- Avoiding the fiscal cliff may be beyond the strained US political system – even kicking the can down the road requires one side to give ground on a core belief.
- Let all tax cuts expire and temporarily offset the negative economic impact with temporary tax and spending measures to boost near-term demand without making choices between the agendas of the two parties.
- Give a 1-yr, $200 billion tax refund to support household spending.
- Spend another $50 billion on roads, public schools, and scientific research.
- Give $50 billion for fiscal relief for states.
- Extend the patch that prevents AMT from hitting tens of millions of households and the Medicare “doc fix” that averts sharp cuts in payments to doctors serving seniors.
- Turn off the sequester put in place in August 2011 that means some $100 billion in automatic spending cuts.
Read the full article at http://www.bloomberg.com/news/2012-12-07/let-s-all-jump-off-the-fiscal-cliff.html