If the Bush tax cuts all lapsed?
Several weeks ago, Jim proposed breaking up the fiscal cliff into manageable pieces -- which seemed like a reasonable approach. As we await counterproposals to the Administration’s proposal, it might be useful to consider what would happen if agreement proves elusive, and all the Bush tax cuts were to lapse (along with other tax reductions), reverting to the tax rates of the Clinton years. Because the Republicans feel so strongly about impending defense cuts, we can be pretty sure that the sequester will be held in abeyance (probably along with the AMT patch).
