Archive for December 2012
Presented at a capital markets briefing on Capitol Hill, sponsored by Third Way
President and speaker draw near to a deficit deal
Dec 22nd 2012 | WASHINGTON, DC | from the print edition
[By Greg Ip] THE housing market has turned, Europe’s crisis is apparently in remission and the Federal Reserve has pressed its monetary accelerator to the floor. Yet as 2012 draws to a close, America’s economy is still growing at an annualised rate of only around 1%. That figure has been depressed by fears of the self-inflicted “fiscal cliff”: a package of tax increases and spending cuts, worth 5% of GDP in a full year, that is set to kick in on January 2nd.
That constraint may also be finally lifting. Read the rest of this entry »
Dec 17th 2012, 22:13 by G.I. | WASHINGTON
By Greg Ip, Published: December 14
As the nation’s leaders seek to keep the country from heading over the “fiscal cliff” — a set of mammoth year-end tax increases and spending cuts — nothing has proved more contentious than taxes. President Obama wants the rich to pay more; Republicans want to keep tax rates where they are. One popular proposal is to eliminate the tax code’s hundreds of loopholes and use the money to reduce the deficit without raising rates. But while tax reform is wonderful in theory, in practice it might not be as politically palatable — or economically effective — as advertised.
1. Tax reform has bipartisan support.
The night he was reelected, President Obama said “reforming our tax code” was among his second-term priorities. A few days later, House Speaker John Boehner said tax reform could help solve the national debt. Read the rest of this entry »
Dec 14th 2012, 19:54 by G.I. | WASHINGTON, D.C.
A falling birth rate and much slower immigration presage long-term trouble ahead
Dec 15th 2012 | WASHINGTON, DC | from the print edition