My counter-offer to the Republicans on the fiscal cliff.

[dawg]

No cuts to Social Security, Medicare or Medicaid.

Modest spending cuts to defense and other government programs, but only those that most on both sides can agree to.

Permanent extension of all tax-cuts for those making $250,000 and below.

Tax-cuts for those making above $250,000 will be tied to the debt ceiling. They will be extended for the same duration the debt ceiling is extended. They expire permanently on the first day the debt ceiling is breached.

And what about the deficit? We simply grow ourselves out of it. As the economy continues to recover, tax revenues will increase, while expenditures for unemployment and food stamps will decrease. There are still some long-term structural problems, but they will NEVER BE FIXED while the Republicans control the House. So kick the can down the road until such time as one party (hopefully us) has sufficient power to fully execute its agenda.

In the meantime, no cuts to Medicare or Social Security while we still have the power to stop them.

And if you think this is irresponsible, it is much more responsible than initiating austerity and the dismantling of our frail social safety net during the worst period of global economic weakness in a generation.

[meti57b]

1. I like it!

[dawg]

2. Thanks.

Something has to be done to resolve this impasse. Most serious economists are not all that worried about the deficit in the short-term, so I think the best possible deal is - you give us the debt ceiling, you get your rich-guy tax cuts.

If we ever regain control of all three branches, those tax-cuts will, of course, be history. If they ever get control, they'll cut Medicare and Social Security. But we should not share the blame with them for that in any fashion.

[TheKentuckian]

3. My offer is to sit and spin, same as it was at the first round of hostages

Each round has created more rather than less hostages and your plan is just to effectively make the Bush/Obama insane tax cuts permanent, which means the idea of "growing out of the deficit" pretty much impossible since you are maintaining one of the main drivers.

You are also maintaining the inequality and incentives to hoard money, which greatly dampens the ability to foster and capture proceeds of economic growth.

[dawg]

4. Would you prefer a Grand Bargain?

The only real bargaining chip we have are those rich-guy tax cuts. I think tying those to the debt ceiling would be a way to end the hostage taking altogether.

The only other alternatives are:

1. giving them *some* of the Medicare, Medicaid and Social Security cuts they want (and sharing the blame), or
2. forcing a constitutional crisis by ignoring the debt ceiling, which will inevitably result in impeachment proceedings.

Which alternative do you support?

[TheKentuckian]

7. As presented, I'll take door #2. I fact, we should have already dealt with it.

Their Impeachment proceedings would be fruitless. In fact, their masters will not allow default. They loose way more than can possibly be gained, most critically forcing interest rates up that cuts into proceeds from the casino and about every major big and quick profit center.

[dawg]

5. Also, the only way my idea would make those tax cuts permanent is ...

if the Republicans permanently held onto the House. And if that is the case, they are going to be pulling us to the brink every six months or so anyway unless we can find some way to short-circuit that process. My way, although flawed, is one way of doing that. If there is a better way, I'm all ears.

[dawg]

6. Self-kick.

Let's hold *them* hostage for a change.