The Fiscal Cliff, government subsidies, and a carbon tax

The “fiscal cliff” debate continued this week with the President reiterating that tax hikes on the wealthy must be a part of any proposal and House Republicans pressing for entitlement and spending cuts.  If the two sides can’t agree on a budget deal, over $600 billion in spending cuts and tax increases automatically go into effect in the new year.  This hour, we’ll get an update on the fiscal cliff talks from Time Magazine senior correspondent MICHAEL GRUNWALD. We’ll also talk to him about a story he wrote on how government subsidies are in all our lives.  Then, with the need to address the budget deficit and global climate change, there have been renewed calls for a tax on carbon.  We’ll talk to University of Chicago Law Professor DAVID WEISBACH about a carbon tax and what it would mean for the debt, the economy and the environment.

AP Photo/Charles Dharapak