Fiscal Policy

Domestic Discretionary Spending

Overall view from the south Rim of the Grand Canyon near Tusayan, Arizona (REUTERS/Charles Platiau).

Opinion

Let’s All Jump Off the Fiscal Cliff

December 7, 2012, Bradley Belt, Jared Bernstein, William G. Gale and Phillip Swagel

As the fiscal cliff approaches and both parties remain unable to reach agreement on how to raise revenue, Bradley Belt, Jared Bernstein, William Gale and Phillip Swagel propose a temporary plan that raises tax rates on all incomes and reduces discretionary spending, but avoids recession by offsetting any negative economic impact with temporary measures to boost near-term demand.

  • In the News

    A completed budget is expected to do much more than set spending levels for discretionary programs...The 2011 BCA kept the government open, but it didn't constitute a full budget.

    September 12, 2012, William A. Galston, PolitiFact