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November 16th, 2012
11:16 AM ET

Peter Orszag: There is 'significant risk' that the country will go over fiscal cliff

Unless lawmakers are able to come to some sort of agreement, the country will go off of the fiscal cliff in 46 days and Americans will see a drastic rise in tax rates and sweeping cuts to defense.

Former Director of the White House Office of Management and Budget Peter Orszag thinks that there is "significant risk" that a deal will not be reached in time.

Orszag sits down with Soledad O'Brien on Starting Point this morning to explain the problems that the country will face if it goes over the fiscal cliff and to explain what components he thinks a deal involves.

"A deal here has to involve two components. One is on revenue, and there is revenue that you can get from cutting back on deductions and exclusions," Orszag says. "But I think, in my mind, the deal here is that marginal tax rates go up a little, maybe a percentage point or two, and maybe you raise the $250,000 threshold up a bit. Will the House Republicans really blow up a deal if the threshold is $1 million to make it up and the marginal tax rate increases one or two percentage points?"

Filed under: Fiscal cliff
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