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Why Not Dive Over The Fiscal Cliff?

4:45 PM, Dec 12, 2012   |    comments
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WASHINGTON (WUSA) -- Every time you turn around, you hear lots of talk about averting the fiscal cliff, but what about just diving right over it?

Senator Patty Murray, a Democrat from Washington state is being referred to as one of the biggest proponents of cliff-diving. Her press person explained the Democrat would prefer to reach a balanced deal - that calls on"the wealthy to pay their fair share" rather than agree to a deal that "throws middle class families under the bus" before midnight on New Year's Eve, but if not, she'd hold out. 

Add to Murray, Representative Peter DeFazio of Oregon Representative Peter Welch of Vermont, also Democrats. But other people say this will only do one thing. 

"You're talking about a $500 billion overnight tax increase-- that's enough to create a recession," said Dr. Peter Morici, an economist and professor at the University of Maryland. 

Here's what he thinks will happen: "I think that there will be some marginal compromise with some tax increases on the wealthy and some spending cuts kick the can to the next president....Mr. Obama is ducking his responsibility as a second term president by bequeathing to the next president an unworkable budget situation if he gets his way."

Whether we dive over the cliff or not, a new proposal sits on the table, waiting to be negotiated. Just 20 days left, until the ball in NYC's Times Square isn't the only thing that could make its way downward.

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