In a Financial Times op-ed this week, Glenn Hubbard, Mitt Romney’s economic advisor during the presidential campaign, talked about how the U.S. can avoid toppling off the fiscal cliff.
The first step is to raise average (not marginal) tax rates on upper-income taxpayers. Revenue increases should first come from these individuals.
That’s right: contrary to the entire GOP campaign, Hubbard suggests that raising taxes on the rich along with meaningful reform in government spending will allow the United States find a sensible fiscal path. Of course, the question is whether or not Democrats and Republicans in Congress can come to an agreement on both issues.
At yesterday’s Washington Ideas Forum, Senator Amy Klobuchar from Minnesota defended her party’s call for higher taxes on the rich and budget cuts in order to lower the country’s record deficit. “It’s about shared sacrifice,” Klobuchar said, “and we think the American people are ready for it.”