A short interview with Bloomberg TV's Betty Liu on the fiscal cliff. No big news for readers of this blog, but maybe fun anyway.
We were just getting going when it ended. I was ready to say, if you didn't buy stimulus from spending increases, you shouldn't fear lack of stimulus from spending reductions; all government (federal, state, local) and all taxes matter; you need to include taxes and benefits, and then see the huge marginal taxes faced by poor people, and how cutting subsidies that go to rich people counts in the distributional calculus;the growth of regulation and tax chaos matters more than tax rates, Europe just showed us what happens when you try to balance the budget with sharp hikes in marginal rates....Next time.
