There is a talk of fiscal cliff if you haven't heard about it. Follow me below the fold to see what Pres. Obama should offer as a TAKE OR LEAVE position
1. Tax cuts for $200K Individual /$250K family will end
2. Tax cuts for $85K-178K slab will expire in 2014 and return to Clinton era rates; tax cuts for $35-85K will return to Clinton era in 2016. Tax rates for the remaining 2 slabs will be made permanent
3. If republicans agree to Capital gains and dividend income being taxed at normal income rates, the tax rate will go down by 2% for all slabs
4. No compromise on Buffet Rule and carried interest
5. SS tax cut of 2% will be replaced with 1% tax cut for 2013
Rationale:
US Federal Govt suffers from serious revenue shortage. While asking for the rich to pay more is the correct and popular decision, there needs to be a path to go back to Clinton era tax rates.