The Fiscal Cliff saga was pretty tough to take for me. I find it difficult to get energized by the constant forecasts of Doom engendered by every twist and turn. Unfortunately, the hysteria of the Press seemed to lead to similar hysteria among politicians desperate to get a deal, and I just hope that when this all shakes out Democrats don't give away the store to get a few crumbs. From what I read I guess they didn't, but I don't understand why the $250,000 threshold for tax hikes, which was all over the campaign, had to be adjusted upwards.
Nevertheless, the unstated Truth is that middle class taxes have to go up again for the welfare state to continue to function, but Obama can't propose that after campaigning on a promise not to raise taxes on the non-rich. It's hard to see how we adequately fund all the things liberals want to do with the current tax base.
But it's the intensity of the conflict right now that is exhausting me. It reminds me of a Hollywood action movie franchise, in which each sequel has to find a way to increase the intensity of the danger, to keep building and getting bigger than the last near-destruction. First we almost destroyed Santa Monica! Next we almost destroyed Los Angeles county! Now it's the whole US! Now the Earth itself is in peril!
So now the Fiscal Cliff is almost behind us (though the House could still wreck the deal), and we're on to the Sequester/ Debt Ceiling standoff coming in just two months. More forecasts of Doom!
Somehow the US Congress has to get past this level of drama. Perhaps it's that they really have to settle on the nature of the Welfare State, i.e. Republicans have to accept that the Welfare State is not going away. Or Republicans have to win an election and follow through on the destruction of the safety net.
I'd just like to get back to debating the levels of funding of various social and military programs, not questioning the basic legitimacy of their existence. I'll keep hoping.
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This deal has EVERYTHING readers of this blog wanted. Higher taxes, a higher Deficit and best of all payoffs to Obama backers in Hollywood. What more could a Lib ask for? It is sure to spur more hiring and a robust Economy looking ahead. Businesses love high taxes, Deficits and rampant Government spending. It gives more money to the more responsible Politicians.
ReplyDeleteFiscal Cliff Deal: $1 in Spending Cuts for Every $41 in Tax Increases
According to the Congressional Budget Office, the last-minute fiscal cliff deal reached by congressional leaders and President Barack Obama cuts only $15 billion in spending while increasing tax revenues by $620 billion—a 41:1 ratio of tax increases to spending cuts. The budget deal passed by the U.S. Senate today would raise taxes on 77.1 percent of U.S. households, mostly because of the expiration of a payroll tax cut, according to preliminary estimates from the nonpartisan Tax Policy Center in Washington. The Senate deal to avoid the "fiscal cliff" will add roughly $4 trillion to the deficit when compared to current law, according to new numbers from the Congressional Budget Office (CBO).
More than 80 percent of households with incomes between $50,000 and $200,000 would pay higher taxes. Among the households facing higher taxes, the average increase would be $1,635, the policy center said. A 2 percent payroll tax cut, enacted during the economic slowdown, is being allowed to expire as of yesterday. It seems Hollywood's rigorous backing of President Barack Obama and his Democrat peers in the waning months of 2012 paid off. Section 317 of the freshly approved legislation includes an extension for "special expensing rules for certain film and television productions." Congress first enacted production tax incentives favorable to the domestic entertainment industry in 2004, and extended them in 2008, but the deal was meant to expire in 2011.
Mr. B.H.O solved his Fiscal Crisis. Here's how he did it.
ReplyDeleteHis total Debt is $100,000.00 dollars.
His Income is $50,000.00/year, he is spending $75,000.00/year so he is going deeper and deeper in Debt every year.
He asked for a raise and is now earning $51,000.00/year and is still spending $75,000.00/year.
Next year his total Debt will be $124,000.00 (not counting interest on the Debt)
This is how Mr. B.H.O solves the Debt problems.
Is this how most Liberals do it?
The Debt deal is so good for Liberals it is sure to bring us much closer to our sister countries over in Europe. The only problem is we can't ask our pals in Germany to bail us out, we'll have to beg China and Saudi Arabia.
ReplyDeletePresident Obama: "The problem is, is that the way Bush has done it over the last eight years is to take out a credit card from the Bank of China in the name of our children, driving up our national debt from $5 trillion for the first 42 presidents - #43 added $4 trillion by his lonesome, so that we now have over $9 trillion of debt that we are going to have to pay back -- $30,000 for every man, woman and child. "That's irresponsible. It's unpatriotic. On July 3, 2008 -- the day before Independence Day -- Barack Obama said "Adding $4 trillion in debt was irresponsible and unpatriotic."
ReplyDeleteI just came up with a solution. We'll be so deep in Debt to China that it would take the next few Generations of our families to pay it off. That's not a very nice thing to do to our family. What if we gave China Alaska? Lots of Oil that we can't drill for. They'll forgive our Debt, drill and sell the Oil to us.
ReplyDeleteThink about it. Our Government can then increase spending until we get in serious Debt again. At that point we can borrow fron China again until it gets out of hand them we'll give them California. They can sell us the movies they make. What do you guys think?
I like it! It gives Democrats the checkbook with unlimited funds until we run out of States.
ReplyDelete