Meet the courageous fiscal cliff-divers, who think jumping off could be our best bet
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"In an ideal world, these figures would want Congress to reach a reasonable deal before the deadline. But they are skeptical that will happen, given the politics surrounding the fiscal cliff, and argue that going over the cliff would remove what they believe is the biggest stumbling block.
Since individual tax rates would go up automatically—rising from 35 to 39.6 percent for the highest-income bracket and 10 to 15 percent for the lowest—Congress would technically be voting to cut them rather than raise them. It’s a distinction that the cliff-divers believe will make all the difference. “Republicans won’t have to violate their ‘no new taxes’ pledge,” says Gale. “The politics are a lot easier and the incentives are a lot stronger.”
President Obama, for his part, promised to veto any legislation that kept the cuts for the wealthy intact.
The cliff-divers don’t deny that the fiscal cliff would deal a serious blow to the economy, knocking the US back into a recession if the spending cuts and tax hikes remain in effect for all of next year. But these advocates say the immediate risk is overblown.
The CBPP points out that most of the changes under the cliff would be phased in gradually, preferring the term “fiscal slope” to counter the notion of an immediate economic apocalypse."