Compromise In Congress to Avert The Fiscal Cliff

Compromise In Congress to Avert The Fiscal Cliff

Congress passed new tax and spending legislation late last night to avert the fiscal cliff. Analysis of new law and prospects for compromise on other key issues including gun control, immigration and U.S. energy policy.

At the very last minute after months of high pitched debate and political wrangling, Congress managed to pass legislation to avert the so-called fiscal cliff. The legislation raises tax rates for high earners, blocks a middle class tax increase but doesn’t begin to address the country’s deficit. At best it’s a stop gap measure: decisions on major spending cuts were postponed for two months and the country’s borrowing limit still needs to be raised. In this hour we talk about the specific compromise provisions Congress came up with, what these may mean for tax payers and the economy, and the immense political and fiscal challenges ahead.

Guests

Norman Ornstein

resident scholar at the American Enterprise Institute and co-author of "It's Even Worse Than It Looks."

Alice Rivlin

senior fellow, Brookings Institution, vice chair, Board of Governors, Federal Reserve System (1996-99); director, White House Office of Management and Budget (1994-96); and founding director, Congressional Budget Office (1975-83).

James Thurber

professor and director of the Center for Congressional and Presidential Studies at American University, and author of "Obama in Office: The First Two Years."

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