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Call it a ‘cliff’ or call it a ‘slope’ – there’s little progress on fiscal showdown (video)

With a little more than a month left to reach a deal, President Obama and Congress resume work today on the so-called fiscal cliff.

The President will meet with select business leaders and members of middle-class families to discuss what’s at stake if an agreement is not reached by the end of the year.

The Obama administration wants to preserve the Bush-era tax cuts for the middle class, while eliminating those tax cuts for Americans earning more than $250,000 a year. Republicans have indicated a willingness to raise revenue through closing loopholes, but are also pushing cuts to entitlement programs like Medicare and Social Security.

This weekend on News & Views with Chris Fitzsimon,  NC Budget & Tax Center policy analyst Allan Freyer joins us in studio to discuss why the cliff should really be considered more of a fiscal slope, and why both political parties want to avoid the automatic spending cuts and tax increases that could sour economic growth in 2013.

“That’s what we’re hoping comes of this eventually is a balanced approach to deficit reduction,” explained Freyer. “[That] finds news revenues through letting the tax cuts for the wealthy expire, then smart spending cuts, not this across the board meat ax.”

For a preview of Freyer’s  radio interview, click below:

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2 Comments

  1. david esmay

    November 29, 2012 at 10:59 am

    Warren Buffet is correct in stating that the fabricated crisis really doesn’t mean much to the overall economy, it isn’t going to “permanently cripple” us. One year from now, we won’t even be talking about it, this is a GOP manufactured crisis, that they hope will create enough hysteria to give them leverage in protecting their agenda of corporate and social welfare for the rich, while cutting programs for the elderly, poor, and children in order to pay for it.

  2. Alex

    November 30, 2012 at 7:15 am

    I wish Allan could detail for us some of the “smart cuts” that he always talks about. So far, no one in government has been able to find them.Obama has increased government spending every year since 2008 by the amount of the initial stimulus in 2009, so evidently he is not aware of these items.