The move would lower the nation’s deficit through $180 billion from income tax hikes, $120 billion in payroll tax revenue, $110 billion from sequestration, and $160 billion from expiring tax breaks and other programs.
The Bank of America report also says that going off the fiscal cliff could reduce the GDP by as much as 4.6 percent.
According to Ezra Klein’s article, Republicans want the 1.2 trillion sequester as evidenced by their bargaining for the budget ceiling last year but will not want to include defense cuts, only the other apportioned cuts.
He also says Democrats would try to preserve aspects of the fiscal cliff such as the expiration of the Bush-era tax cuts.
One thing is clear from Klein’s article, representatives in Congress want a more gradual deficit reduction as opposed to the $720 billion 2013 austerity set to take place.