The election is over. The Sunday morning gab shows suddenly found a purpose, interviewing serious Senators and other concerned about the work that the new (and first old!) Congress will face – particularly the “Fiscal Cliff”. A tremendous amount of movement on the Republican side shows that tax increases, particularly coming as reform in the deductions allowable, is definitely on the table.
Grover Norquist now knows what it’s like to be in a position where you can’t deliver the votes. Must be a shocker.
The question remains, however, as to how much of the roughly $1.1 Trillion deficit will be tackled in year 2013, and how much will be spun out into the future. No one expects the gap to close overnight, but instead are looking for serious progress towards balance. More to the point, they want to assure markets that it won’t grow from here. How much can they raise get us down the path right away? Here is a short guide to some of the ways to look at it.