My fear is that some Democrats want to go off the cliff. Back in July, Tax Policy Center co-director William G. Gale wrote that if Congress doesn’t act to prevent the “fiscal cliff,” Washington wins an extra $2.8 trillion in tax revenue over a decade. It’s a Democrat’s happiest dream — huge tax increases without having to vote for huge tax increases.
If America goes and stays off the cliff, Tax Foundation chief economist Will McBride told me, the hit on the gross domestic product would be 9.6 percent, and American wages would fall 7 percent.
To counter any negative effects of going over the cliff, Gale proposed more stimulus spending.
As for Obama, he seems more interested in beating Republicans on the issue of the top 2 percent than he does in repairing a teetering economy. During the election, the president argued that he sought balance. But, The Wall Street Journal reported, the White House’s initial offer to avoid going over the fiscal cliff presented $1.6 trillion in tax increases over 10 years but a mere $400 billion in spending cuts. During negotiations, the president wouldn’t agree to more cuts.