Former Treasury Sec. Lawrence Summers (1999-2001) provides his perspective of the so-called "fiscal cliff" and offers an economic strategy for the next decade.
In a discussion hosted by the Center for American Progress (CAP), Mr. Summers and CAP President Neera Tanden address topics surrounding the "fiscal cliff" including tax code simplification and fairness, the corporate tax rate and raising taxes to pay for health care obligations.
The "fiscal cliff" as it has been called by budget analysts is actually two separate policy events that are scheduled to happen at the same time. First, the Bush-era tax cuts are set to expire, effectively raising taxes on all families. Second, as a result of the budget control act of last year, massive mandatory budget cuts will take effect in January unless Congress comes up with an alternate plan to reduce the deficit and cut spending.
Lawrence Summers is president emeritus of Harvard University and former director of the National Economic Council.