Wednesday, February 20, 2013
NYU hosts a forum today on Cliffs Forever? Tax Reform and the Future of Fiscal Policy:
After weeks of negotiations, in the first days of January, Congress and the Obama Administration struck a last-minute deal that averted the so-called "fiscal cliff," a combination of federal tax increases and budget cuts. Yet this compromise merely deferred until March 1 "sequestration," which will cause the military and dozens of other government agencies to face about $1 trillion in automatic budget cuts over the coming decade. And, the debt limit again looms later in the year. Did Congress make progress toward reducing our fiscal shortfalls by enacting tax increases earlier this year? What is likely to happen in the upcoming sequestration negotiations and how will it affect the economy? Is tax reform the way forward, or is it a distraction? And why do budget and tax debates appear to occur only when the clock is ticking on looming high-stakes deadlines?