Oct. 18, 2012
Updated December 3, 2012
The 112th Congress can take clear action to avoid the “fiscal cliff” and establish a framework for achieving comprehensive spending and tax reform in 2013.
The Bipartisan Policy Center proposes enacting legislation in the lame duck session that has the four basic elements outlined below. This package is meant to serve as a starting point to be refined by Congress as it negotiates a final product. Therefore, we leave important elements unspecified, such as the ratio between spending cuts and revenue increases, the size of a “down payment” that might be necessary to pass this law in the lame duck session of the 112th Congress, and consideration of an increase to the federal debt limit.
The framework would essentially “codify” much of budget reconciliation, which is now part of the congressional budget process (the “regular order”), and set up a new accelerated regular order.
Domenici-Rivlin 2.0, the Fiscal Cliff & a Framework to Bridge Them
Read BPC's Debt Limit Analysis
View BPC's interactive Fiscal Cliff Timeline
Read the press release here.
Staff Paper, Economic Policy Project