Bungee-Jumping Off the Fiscal Cliff

Discussion in 'Politics' started by Star, Dec 27, 2012.

  1. Star
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    Star Gold Member

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    Last week I was in Mexico - Zip Lining, Golfing, ATVing, Bungee-Jumping, etc. A couple of fellow adventurers and I were joking about how-----how if we go off the so-called fiscal cliff we'll bounce right back --- just like bungee-jumping. Robert Reich is a lot smarter than I am, Reich saw the bungee-jumping comparison about month ago.


    Bungee-Jumping Over the Fiscal Cliff

    11/29/2012


    What's the best way to pressure Republicans into agreeing to extend the Bush tax cuts for the middle class while ending them for the wealthy?

    The president evidently believes it's to scare average Americans about how much additional taxes they'll pay if the Bush tax cuts expire on schedule at the end of the year. He plans to barnstorm around the country, sounding the alarm.

    The White House has even set up a new Twitter hashtag: "My2K," referring to the extra $2,200 in taxes the average family will pay if all the Bush cuts expire. Earlier this week the Council of Economic Advisers published a report detailing the awful consequences of going over the so-called "fiscal cliff."

    But isn't this fear-mongering likely to buttress Republican arguments that the Bush tax cuts should be extended for everyone -- including the rich? Republicans will say (as they have a thousand times before) that the rich are the "job creators," so we should tackle the budget deficit by cutting spending rather than raising anyone's taxes.

    Obama's only real bargaining leverage comes from the fact that when the Bush tax cuts expire at the end of December, America's wealthiest will take the biggest hit. The highest marginal income tax rate will rise from 35 to 39.6 percent (for joint filers), and the capital gains rate from 15 to 20 percent.

    This will happen automatically if nothing is done between now and then to change course. It's the default if Republicans won't agree to anything else. It's Obama's trump card.

    So rather than stoking middle-class fears about the cliff, the White House ought to be doing the opposite -- reassuring most Americans they can survive the fall. To utilize his trump card effectively, Obama needs to convince Republicans that the middle class is willing to jump.

    And the middle class can jump fearlessly if the White House and Democrats enact legislation that reinstates the Bush tax cuts for the middle class as of January 1.
    The legislation would operate like a bungee cord -- snapping the middle class back from the abyss of paying an extra $2,200 in taxes next year, even as the wealthy go over the cliff.

    This bungee-cord legislation could be introduced early next year, but there's no reason not to introduce it sooner -- even now. And challenge Republicans to vote on it as we get nearer and nearer the precipice.

    <snip>

    If Republicans won't agree, they still face the cliff's automatic tax increases on the rich. But they're also revealed as shills for the rich -- ready and willing to push the middle class over the edge in pursuit of even more wealth for their patrons.

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  2. SniperFire
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    SniperFire Senior Member

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    I Barack Hussein, agree to extend bush era tax rates to everyone as part of the deal to increase the debt ceiling limit. Master Boehner has once again made me his little bitch.

    Signed:

    X_______________________________________________________________

    Barack Hussein, Aspiring Third World Dictator and POTUS


    Press hard, mofo. Third copy is yours.
     
  3. georgephillip
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    georgephillip Gold Member Supporting Member

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    Is the debt limit an arbitrary misdirection?

    "Ultimately the entire &#8216;debate&#8217; is nonsense&#8212;the U.S. doesn&#8217;t fund spending directly from taxes. As the Federal Reserve is in the process of demonstrating with its QE (Quantitative Easing) programs, it can buy an unlimited quantity of government debt with money it &#8216;creates&#8217; &#8211;the &#8216;debt limit&#8217; is an arbitrary misdirection.

    "This isn&#8217;t to argue that there is no relationship between economic production and money creation, but it is to point out that the &#8216;Federal budget&#8217; is a convenient fiction. So, given his repeated analogy of the Federal budget to a family budget, is Mr. Obama ignorant of government finances or does he understand them and is purposely using the misleading analogy to further unstated goals?"

    Democrats, Social Security and the Fiscal Cliff » Counterpunch: Tells the Facts, Names the Names
     
  4. Star
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    Star Gold Member

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    What you are appoving of is going on a spending spree then-----then when the bills come due saying, "fuckit, I ain't payin'". Are you some kind of deadbeat? the Republican Congress is.


    Birds of a feather?
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  5. oreo
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    oreo Gold Member Supporting Member

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    What's the best way to get Republicans to compromise? Have Obama put back on the table his "balanced approach"--that he campaigned on--meaning spending cuts--that he took off of the table in his latest ridiculous proposal--that even the democrat lead senate refused to support.

    That's how it's done--Da Duh.

    [​IMG]

    You voted for it--you got it. Hopefully you never really believed that 5% of the population would be able to pay for 16 trillion in red ink currently--with another 64 trillion in unfunded liabilities and Obamacare too--LOL.

    "When democrats start talking about raising taxes on the wealthy--the middle class needs to run for cover"-- Fred Thompson
     
    Last edited: Dec 27, 2012
  6. Star
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    Star Gold Member

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    I don't think you're stupid, so you must be kidding ---- right? It wasn't all that long ago that every single one of the Republican candidates running for POTUS said a 10 to 1 ratio of spending cuts to tax increases wouldn't pass muster with the Republican party but now-----now after getting your asses kicked in the House, Senate and Presidential election, you're willing to forego your principles and accept a 1 to 1 ratio of tax increases to spending cuts? my my my, what a difference an election makes or-----or do have misunderstanding of the word "balance". To balance out the trillion dollars in spending cuts Obama has already made, how big should the tax increase be to achieve balance?
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  7. SniperFire
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    SniperFire Senior Member

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    ' the trillion dollars in spending cuts Obama has already made'

    LOL

    That there is some funny shit.
     
  8. Star
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    Star Gold Member

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    Funny? what's funny is how far up the elephant's ass righty heads are.
    If righty's weren't so far into denial and/or ODS, Obama's spending cuts probably would give you the giggles.





    [​IMG]
    Viral Facebook post says Barack Obama has lowest spending record of any recent president


    Here are the average spending increases per year in raw dollars (not adjusted for inflation) in descending order by president:

    Average Percent Increase Per Year
    Carter - 16.4
    Nixon - 13.5
    Johnson - 11.0
    GW Bush - 10.2
    Reagan - 8.6
    Kennedy - 7.1
    GHW Bush - 5.8
    Clinton - 4.0
    Eisenhower - 3.6
    Obama - 1.4

    So, using raw dollars, Obama did oversee the lowest annual increases in spending of any president in 60 years.

    Here are the results using inflation-adjusted figures:

    Average Percent Increase Per Year
    Johnson - 6.3
    GW Bush - 5.9
    Kennedy - 4.7
    Carter - 4.2
    Nixon - 3.0
    Reagan - 2.7
    GHW Bush -1.8
    Clinton - 1.5
    Obama - -0.1
    Eisenhower - -0.5

    So, using inflation-adjusted dollars, Obama had the second-lowest increase -- in fact, he actually presided over a decrease once inflation is taken into account.

    Bottom line: The Facebook post’s claim that government spending under Obama is "slower than at any time in nearly 60 years" is very close to accurate.


    [​IMG]
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