With the Thanksgiving holiday now behind us, and congress back in session, the impending fiscal cliff will be dominating the news and the markets. This clip by Fareed Zakaria, from CNN’s GPS, gives great insight and a real look at what the real issues are and what we could do to adress them and perhaps fix them.
Democrats are pushing for more revenue, primarily in the form of higher taxes, while the Republicans want to cut spending in order to deal with our looming budget crisis before the new year. Whatever the hopeful solution is, it has to take into account the vast complexity that exists in our tax system. Either a short term fix – in anticipation for a more comprehensive ‘grand bargain ‘ which will provide comprehensive tax reform- or a comprehensive deal is what is needed. Whatever the solution our elected leaders must find common ground and work together to solve our problems and get our fiscal house in order. To do so we must expand the conversation beyond the ‘cut spending’ and ‘raising taxes’ rhetoric each party has employed in this discourse and look at the root of the problem, and come up with a better, and more encompassing, solution.