Now that's what a negotiation looks like.
Up to this point, the talks between the White House and Congressional Republicans over resolving the "fiscal cliff" have been — as far as the public could see, anyway — exercises in strategic bluster. But now there seems to be a genuine give and take: Both sides are making offers that concede that they will not get their way on everything. There are still no guarantees of a deal by the Jan. 1 onset of the austerity crisis. But there is enough on the table now that we can start examining what it would mean for the economy in 2013 and beyond.
In a nutshell it's this: There should be an immediate boost to the economy from taking the fiscal cliff off the table; uncertain effects from a deficit-reduction plan could possibly raise business confidence; expected tax hikes on the affluent would be a mild negative; and the expiration of the payroll tax holiday would be a significant negative.