By Jennifer Liberto
WASHINGTON (CNNMoney) — The White House initial proposal to avert the fiscal cliff includes $200 billion in economic boosters — a stimulus plan Republican critics are railing against when they say the country needs to start reducing debt.
But even deficit hawks say spending more now is fine and even warranted to support a fledgling economic recovery. The key is long-term cuts that take effect down the road.
“What the president has pitched is pretty small,” said William Gale, who co-directs the Brookings Institution’s Tax Policy Center. “There’s a lot more that could be done, and it wouldn’t have that much of a negative long-term impact.”
What’s in President Obama’s $200 billion plan for economic growth?
Two administration officials confirmed some of the stimulus policies Obama would like to see. The dollar figures are drawn from Congressional Budget Office and Congressional Research Service estimates on past proposals.
View original post 221 more words