Well it seem all but certain that we'll run over the fiscal cliff. Meaning the Government will be shut down and Bush tax cuts will expire for everyone.
Obama and the Dems want Bush tax cuts to expire for the 250k+ brackets (starting at around 3% increase for 250k up to 4.5% for 388k) and raise Capital gains tax from 15 to 20%. This by itself will cut deficit spending by over 10%.
Boehner wants only people making 1 mill + to have Bush tax cuts expire. As I have stated in a previous post (early in the general elections) that this sounds nice but simply will not raise significant revenue. Boehner's proposal, by the way, is shunned by help the wealthy Republicans.
Republicans want either
1.No tax changes
2.Secretly want to raise taxes for all Americans and for political reasons can't say that. Going over the fiscal cliff would do that by default. On the bright side, in the short run deficit will decrease by around 20%. On the down side, a weaker middle class would almost certainly mean a slower economy. Much more so than tax hikes only on the wealthy.
Who do you think will get the most blame when the Government fails to pass a budget plan for the future in time?