Why Not Go Over the Fiscal Cliff?

For starters the DOW will likely drop 900 points and 1.5% trillion dollars in equity will evaporate in a few days but more importantly we can't afford to miss this opportunity to actually make tough political changes.

The Republicans want to see spending reductions and entitlement reform before they agree to raise taxes while the Democrats keep pounding the drum of tax fairness and indicate they will not make changes to entitlements.

It's self evident that the social security retirement age must be raised to keep the program solvent and benefits means tested.  Next, move the charitable deduction from Schedule "A" to the front of the 1040 and limit total Schedule "A" deductions to an amount that will not impact 80% of tax payers. 

This is just a start. Other issues like the payroll tax cut, capital gains taxes, defense spending, etc... still need to be addressed but let's agree it would be a bad idea to start the New Year with a market in a tail spin and continued economic stagnation if not double dip recession.