Photo: a.dombrowski via Flickr
The battle over the fiscal cliff begins today.CNN reports that today Barack Obama will call for a one-year extension of the Bush tax cuts for those making under $250,000.
In theory, the idea is to remove some uncertainty for the middle class before the real battle begins over the spending cut and tax hike debate that will occur at the end of this year.
In practice, the idea is to put the GOP congress on the spot, and force it to oppose this act of tax relief.
The GOP will presumably insist on not separating out the rich vs. sub-$250K taxes, demanding that they be dealt with together
The fight over the fiscal cliff will likely be incredibly acrimonious, and this should be a nice preview of what’s to come later this year.
What’s remarkable is how sanguine investors say they are.
Check out this chart from Citi’s Tobias Levkovich… the overwhelming view among big investors is that everything (tax cuts and spending cuts) will be postponed.
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