The Case for Falling Off the Fiscal Cliff



Jingle Bells, Jingle Bells, Fiscal Cliff is on the Way!

This is the mixed message we've been getting in the news this December. The retail season has been a good one thus far. Come January 1, however, if Congress and the White House don't reach a grand bargain, we will all be sent hurtling over the Fiscal Cliff, with its commensurate economic misery for the middle class.

We're supposed to be scared into some sort of deal by December 31...or else!

But what is the "or else"?

At the bewitching hour of midnight, taxes are set to go up and spending is set to get cut--this is automatic if the government fails to act. This is also, by the way, a bed that was made by congresses and presidents of both parties, in recognition of the growing debt and deficits.

And if we leap? Expect much more cooperation as members of Congress are in a mad dash to be tax-cutters, and spending restorers. So maybe the top brackets pay a little more, just not 4 percent more. And maybe the number of folks who don't pay federal income taxes goes down from 47%. Perhaps only the most critical spending gets restored, but we still cut more than either of the two versions of a deal that are on the table right now.

Don't forget, too, that the $2000 to $4000 hit the middle class is supposed to take once we take the leap is an annual total. Tax policy is commonly done on a retroactive to the first of the year. The chances that any of us take the hits we are being promised aren't very high.

Maybe, just maybe, no deal is better than a bad one--including that of kicking the can another 12 months down the road.


3 days 13 hours ago

The KLPW Radio Athlete of the Week is Freshman Cross Country Runner Julia McIntyre from New Haven High School. Julia finished sixth in the state meet in Jefferson City with a time of 20:58.40 at the Oak Hills Golf Course in Jefferson City earlier this month. She helped her team to a 12th place finish. Julia was a straight A student at Franklin County R-2 and she continues to get A's in high school.

OFF THE CUFF with Diane Jones

1 week 1 day ago

Football players strike. A university president resigns. Suddenly, the University of Missouri is in the eye of a media firestorm. Mizzou has now supplanted Ferguson as the hash tag known round the world.



14 hours 2 min ago

Two games are scheduled this evening in the 63rd Annual Borgia/Pepsi Thanksgiving Tournament....
Union goes up against North Tech at 6:00, followed by Borgia and Carnahan at 7:30. Both games will be broadcast live on KLPW-AM 1220.