As the federal government approaches the dreaded fiscal cliff at the end of the year, a Winthrop University professor says the United States is facing $500 billion worth of tax increases and spending cuts.
Robert Stonebraker, a professor of Economics in Winthrop University’s College of Business Administration, says most economists believe that in the short run you can’t do too much about the deficit or the debt because it will derail the economic recovery.
Stonebraker says he would allow the Bush-era tax cuts for families earning more than $250,000 to disappear at the beginning of next year.
Stonebraker says some tax deductions and exclusions should be scaled back. He says doing that would allow tax rates to be lowered and still generate the same amount of revenue.
One deduction he says he would get rid of eventually is the mortgage interest deduction.
However, Stonebraker says that deduction should be done away with over the long term.
Stonebraker says you can still come up with a long-term plan that can attack the federal deficit once the economy becomes more robust.