Category Archives: Politics

Understanding the President’s fiscal cliff offer

Understanding the President’s fiscal cliff offer | Keith Hennessey.

According to Stanford University’s Keith Hennessey, here are the parts of the Obama administration’s offer which are supposedly “non-negotiable”:

Taxes

  • Raise top two income tax rates permanently (for single taxpayers earning $200,000+ and for married filing jointly households earning $250,000+);
  • Extend all other tax rates, credits, and related income tax provisions permanently;
  • Tax dividend income as ordinary income (nearly tripling the current 15% rate);
  • Estate tax: first $3.6M is exempted, everything above $3.6M is taxed at a 45% rate.

Debt limit

  • Increase the debt limit “permanently,” meaning further action by Congress to raise it in the future would not be needed ever again.

We Already Went Over the Fiscal Cliff

We Already Went Over the Fiscal Cliff | The American Conservative.

It’s Paul Krugman vs. Paul Krugman.  Paul Krugman v.2 says there’s nothing to worry about, whereas a previous incarnation of Paul Krugman (from a decade ago – let’s call him Paul Krugman v.1) says that there is plenty to worry about…  Hat tip to my Baylor colleague economist Dave VanHoose for pointing this article out to me…