Fiscal Cliff Deal: $1 In Spending Cuts For Every $41 In Tax IncreasesSubmitted by emalvini on Tue, 01/01/2013 - 14:06
Fiscal Cliff Deal: $1 In Spending Cuts For Every $41 In Tax Increases
by MATTHEW BOYLE
31 December 2012
According to the Congressional Budget Office, the last-minute fiscal cliff deal reached by congressional leaders and President Barack Obama cuts only $15 billion in spending while increasing tax revenues by $620 billion—a 41:1 ratio of tax increases to spending cuts.
When Presidents Ronald Reagan and George H.W. Bush increased taxes in return for spending cuts—cuts that never ultimately came—they did so at ratios of 1:3 and 1:2.