Why the Fiscal Cliff Negotiations Will Fail Even If They “Succeed”


By Charles Kadlec – The false premise championed by President Barack Obama and his fellow Democrats is higher tax rates on “the rich” are the key to fiscal balance.

The false premise championed by House Speaker John Boehner is that the number one driver of future deficits is entitlement spending in the form of Social Security and Medicare.

False premises are dangerous because they lead to bad policies.

Currently, the negotiations over the budget are based on the CBO’s assumption that real economic growth will average a paltry 2.8% over the next 10-years. Just getting back to the average of 3.1% would reduce projected deficits by more than $900 billion. more> http://tinyurl.com/cdbw6xp

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