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Fiscal Cliff: Avoid or Drive Right Over It?

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  • Description

    FBN's Rich Edson on Washington's position on fixing the fiscal drag.

  • Duration 2:23
  • Date

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And -- you haven't everybody in this is why the fiscal cliff looks like come next January with its expiration of the bush tax cuts.

Taking seriously.

Other payroll tax holiday ends extended jobless benefits and and automatic tax cuts kick and the one little group.

Is now saying so what -- that's tax increase the -- a lot of happened -- it looks like the Democrats are are trying to play hardball all of this submission date.

Well.

You -- there's an interesting point to be made here what position -- Democrats take with all this right now they're saying look extend to most of the current tax rates work on other issues but we're not really.

It -- -- deep negotiations on this yet a Bank of America Merrill Lynch analysis says the US economy faces an unprecedented.

720.

Billion dollar fiscal drag from broad based tax increases and spending cuts.

Scheduled to begin in January this is congress is tasked to solve an analyst.

With he left leaning center for budget and policy priorities says.

If lawmakers fail to address this fiscal impact in the immediate future.

They should simply waited until early next year after the tax increases and spending cuts begin.

Analyst writes that modest delay could produce a policy that is better for the economy over the mid and long term.

And another extension of current tax and spending policies the economy will not immediately fall off a cliff.

Into recession the first week in January and that's -- -- basically shared by vice president Joseph Biden's former chief economist Jared Bernstein.

Now while no lawmaker has specifically endorsed this position aides say staff members.

Had been forwarding around this analysis White House official will only say the administration continues to press congress.

To enact a balanced approach to deficit reduction.

And Fed Chairman Ben Bernanke testifying this morning is one of many who -- -- Of the fiscal cliff especially the tax increases.

The potential expiration.

Of the so called bush tax cuts -- -- -- 2000 treat.

Tax cuts is the single -- his biggest item.

In the fiscal cliff would have an adverse effect on spending and the growth in the economy.

The -- would be significant.

Congressional aides say lawmakers will very likely wait until after November's elections to work this all -- Back to you pirate that's another question -- thank you very much.

It is.

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