Chart Of The Day: The Fiscal Cliff For The Rest Of Us

[Mad Scientist]

From ZeroHedge:
Chart Of The Day: The Fiscal Cliff For The Rest Of Us | ZeroHedge

USA Today's great one-stop-shop infographic which simplifies the fiscal cliff impact for the rest of us: A raft of tax and spending changes scheduled to take effect in January will sharply reduce the federal budget deficit, but will also send the economy back into recession if they all happen at once.

You see the Tax Hikes compared to the Spending cuts?
Tax Hikes: 388 Billion
Spending Cuts: 163 Billion
Unemployment could reach 9.1%!

Lol wut?

 

[waltky]

Small businesses still slightly down on economy...

Small businesses remain pessimistic about economy
11/13/12 - Small businesses became slightly optimistic last month, but still remain largely down on the state of the economy, an industry index said Tuesday.

The National Federation of Independent Business’ optimism index ticked up to 93.1 in October, an increase of 0.3 points. But the index also found that small-business owners are as uncertain as they’ve ever been about what the future holds, and Bill Dunkelberg, the federation’s chief economist, said "the index still remains in solidly pessimistic—and recessionary territory."

Small-business owners, like many in Washington, are particularly concerned about the looming “fiscal cliff,” the slew of spending cuts and tax hikes set to go into effect at the beginning of next year. NFIB surveyed owners before November’s election, but Dunkelberg suggested that the results of that election would do little to assuage concerns that a reelected President Obama and Congress can find a solution to the cliff.

“The election is over and Washington looks much like it did on November 5th,” Dunkelberg said in a statement. “The fear of stalemate among the small-business community is palpable, as the looming fiscal cliff and the threat of higher costs and more taxes are very real possibilities come January.” “Until then,” he added, “not knowing the direction of the economy will always have a dampening impact on spending and hiring.”

MORE

See also:

Ethiopia Is Using Radiation to Eradicate Tsetse Flies
November 14, 2012 — Ethiopia is winning the battle against the tsetse fly, using what officials say is safe nuclear technology.

The project to battle livestock-menacing tsetse flies started in April in a laboratory on the outskirts of the capital. The key weapon? Radiation. Terzu Daya, the director the lab, explains how it works. “The purpose of radiation is to make them [tsetste flies] to be sterile," said Daya. "If you avoid further generation, so that the tsetse fly can be eradicated. The main secret behind this is that, once female flies mate with the male, she will not mate again in her life. That’s the advantage."

After the sterilization, a plane spreads thousands of non-productive tsetse flies every Wednesday in various parts of Ethiopia, especially along riverbed breeding grounds. So far, more than a million laboratory flies have been released. Now sterilized flies outnumber fertile flies, eight to one.

Thomas Cherenet, the director general of the Southern Tsetse Eradication Project, says the program is safe, effective and will not affect the delicate food chain balance. "They [the tsteste flies] are not even used in the food chain," said Cherenet. "They are not used for any animal to be fed."

The tsetse fly is only found in Africa and poses threats to both humans and livestock. The blood sucking fly spreads a parasite which causes trypanosomiasis and attacks the central nervous system. In humans the disease is commonly called sleeping sickness. In cattle and other livestock it is called nagana. Its symptoms are similar to malaria and it can kill, if left untreated. Tens of millions of Africans and their livestock are at risk each year.

MORE

 

[waltky]

Granny says Obama gonna make dem politicians earn dey's pay...

Fiscal cliff: Optimism between Obama and Congress leaders
16 November 2012 - President Obama tells congressional leaders they must do the work the American people expect them to do

The US president and Congressional leaders have voiced optimism over resolving the fiscal cliff of tax rises and spending cuts at the end of 2012. Barack Obama met with leaders at the White House, with Republicans sounding more inclined to back higher taxes in some form. "I feel confident that a solution may be in sight," said House Democratic leader Nancy Pelosi. Fears about the so-called fiscal cliff have hurt stocks in recent weeks.

After the meeting, the Republican speaker of the House of Representatives John Boehner said his party - which controls the House - was willing to consider increased revenue "as long as it is accompanied by spending cuts". Mr Obama met with Mr Boehner, House minority leader Nancy Pelosi (a Democrat), Senate majority leader Harry Reid (a Democrat), Senate minority leader Mitch McConnell (a Republican), as well as Vice President Joe Biden and Treasury Secretary Timothy Geithner.

President Obama has called for high earners in the US to pay more in taxes. "My hope is this is going to be the beginning of a fruitful process that we're able to come to agreement that will reduce our deficit in a balanced way, that we will deal with some of these long-term impediments to growth and we're also going to be focusing on making sure that middle class families are able to get ahead," Mr Obama said before the talks began. "I think we're all aware that we have some urgent business to do. We've got to make sure that taxes don't go up on middle class families, that our economy remains strong."

After the meeting, White House press secretary Jay Carney said: "Both sides agreed that while there may be differences in our preferred approaches, we will continue a constructive process to find a solution and come to a conclusion as soon as possible."

More BBC News - Fiscal cliff: Optimism between Obama and Congress leaders

See also:

Go Over the Cliff? May Be Best Thing
11/16/12 --- This year's stock market strength was caused by the continued anticipation of additional Federal Reserve Quantitative Easing programs. When it came to QE3 I thought the market had rallied too far too fast and opined that this anticipation was factored in by mid-September.

To me it was a case of buy in anticipation, sell on the news. QE3 was announced on Sept. 13, and most stocks, ETFs and equity averages peaked between Sept. 14 and Sept. 21. As the stock market began to become infected with "QE fatigue", the focus shifted to the pending "fiscal cliff". On Election Day stocks had a strong rally in anticipation that Mitt Romney would pull out a victory, but when President Obama won a second term stocks took it on the chin and "QE fatigue" became an epidemic. With this week's weakness and market concerns around the world this epidemic has become a pandemic.

All major equity averages and all sector ETFs I track have negative weekly chart profiles. Without any safe sectors the epidemic of "QE Fatigue" can be justifiably called a pandemic, as there are no safe havens in the equity markets. The background to the "fiscal cliff" began with the Budget Control Act, which became law because of the partisan stalemate in Washington, DC. Democrats and Republicans could not agree on how to cut the budget deficit. This law calls for across-the-board spending cuts, "sequestration" to most discretionary programs. In addition, the law specifies the Bush-era tax cuts expire as 2013 begins.

President Obama wants the tax cuts to end for families making more than $250,000 per year, or $200,000 for individuals. The House Republicans do not want any tax rate hikes but seek to overhaul the entire tax code. If the Republicans agree to keep middle-class tax rates unchanged and raise those on the so-called wealthy, they lose their bargaining chip. In my opinion, the Budget Control Act was the country's insurance policy that America would take action to reduce the uncontrollable budget deficit and growing debt. It's the act that forces austerity.

MORE

 

[waltky]

Time to get out the track shoes & get ready to do some jumpin'...

Fiscal cliff negotiators are facing high hurdles
Nov 18,`12 WASHINGTON (AP) -- It's entirely possible that lawmakers and the White House will reach a deal that staves off an avalanche of tax increases and deep cuts in government programs before a Jan. 1 deadline. To do so, however, they'll have to resolve deep political and fiscal disagreements that have stymied them time after time despite repeated promises to overcome them.

For many economists, corporate leaders and politicians, it's unconscionable to let the government veer over the "fiscal cliff," which could drain $500 billion from the still-struggling economy next year. But even President Barack Obama says it could happen. "Obviously we can all imagine a scenario where we go off the fiscal cliff," the president said last week. The likeliest cause, he suggested, would be "too much stubbornness in Congress," especially on the issue of taxes. Many Republicans in Congress counter that it's Obama who is too unyielding. The knottiest issues facing the White House and congressional negotiators include:

TAX RATES

Obama campaigned on a pledge to end the George W. Bush-era tax cuts for households making more than $250,000 a year. Republican leaders say the lower rates from 2001 and 2003 should remain in place for everyone, including the rich. Both sides have dug in so deeply that it will be politically painful to back down. Republicans say tax increases on the rich would inhibit job growth. Democrats dispute that, and say it's only fair for the wealthiest to provide more revenue in this era of historically low tax burdens and a growing income disparity between the rich and the poor.

Most Republican lawmakers have signed a pledge not to allow tax rates to rise, even if they are scheduled to do so by law, as are the Bush-era cuts. Some Democrats say it may be necessary to let the Dec. 31 deadline expire and have everyone's tax rates revert to the higher, pre-Bush levels. Then, the argument goes, Republicans could vote to bring the rates back down for most Americans, but not the richest, without breaking their pledge.

The tax rate issue is especially thorny because it doesn't lend itself to Washington's favorite tactics for postponing hard decisions. Lawmakers routinely resort to "continuing resolutions" to end budget impasses by keeping spending levels unchanged for yet another year. Politically, no one wins or loses. Obama's campaign promise to raise tax rates on the wealthy precludes that. Either rates on the rich will rise and Republicans will absorb defeat on a huge priority, or the rates will remain unchanged, a political defeat for Obama.

LOBBIES AND THE STATUS QUO

See also:

Any Deal Must Increase Tax Rates; Majority of House Has Pledged Not To
November 18, 2012 - House Minority Leader Nancy Pelosi (D.-Calif.) said on ABC’s “This Week” on Sunday that there can be no deal to avert the so-called “fiscal cliff” the federal government faces at the end of the year unless congressional Republicans agree to increase income-tax rates on higher income earners.

However, a majority of the current House of Representatives and a majority of the newly elected House that will convene in January have pledged to the American people that they will not raise the tax rates. ABC’s Martha Raddatz asked Pelosi: “Could you accept a deal that does not include tax rate increases for the wealthy? We have seen talk about a possible compromise that would leave rates the same, but cap deductions for high-income earners. Is that something that's acceptable? “No,” said Pelosi.

Asked Raddatz: “Not at all? No way?” “Well, no,” said Pelosi. “What you just described is a formula and a blueprint for hampering our future,” Pelosi said a moment later. “You cannot go forward, you have to cut some investments. If you cut too many, you're hampering growth, you're hampering education, our investments for the future. “So just to close loopholes is far too little money,” said Pelosi. “If it's, and it could be, they have said they want it to be revenue-neutral. If it's going to bring in revenue, the president has been very clear that the higher-income people have to pay their fair share.”

In the “lame duck” 112th Congress, which will serve through the end of the year, 238 House members took the Americans for Tax Reform (ATR) pledge, in which they pledged to the taxpayers of their state and the American people generally that they would oppose any and all efforts to increase marginal tax rates. Since the House has 435 members—with 218 being a majority—some members who took the pledge would need to break it for a tax increase to be enacted. In the 113th Congress, whose House members were all elected on Nov. 6, 219 House members have taken the ATR pledge. That is still a majority of the House, meaning after the New Year, some House members would need to break their no-tax increase pledge for a tax increase to be enacted.

More http://cnsnews.com/news/article/pel...ease-tax-rates-majority-house-has-pledged-not

 

[waltky]

Granny says, "Dat's right - put `em all onna same bus an' drive it right over the cliff...

Michael Moore to Obama: ‘Drive the Rich Right Off Their Fiscal Cliff'
November 20, 2012 – In an “open letter” to the president, liberal filmmaker Michael Moore urges President Obama to "get some fight" and offers a list of items for Obama to tackle in his second term.

At the top of Moore's list: "Drive the rich right off their fiscal cliff." Published Monday on his website, Moore's letter congratulated Obama on his reelection victory, but “respectfully” asked that his second term not resemble his first. “It's not that you didn't get anything done,” Moore said. “You got A LOT done. But there are some very huge issues that have been left unresolved and, dammit, we need you to get some fight in you. “Wall Street and the uber-rich have been conducting a bloody class war for over 30 years and it's about time they were stopped,” he said.

Moore proposes a left-wing agenda that includes letting the entire Bush-era tax cuts expire: "Drive the rich right off their fiscal cliff,” Moore says. “The ‘fiscal cliff’ is a ruse, an invention by the Right and the rich, to try and keep their huge tax breaks,” he said. “On December 31, let ALL the tax cuts expire.” “And for God's sake, man – declare Social Security and Medicare/Medicaid untouchable,” Moore adds. “They're not bankrupt or anywhere near it.” Continuing his advice for Obama to “just go for it” in his second term, Moore demands “end all the wars now,” saying the U.S. is becoming “addicted to war.”

Moore also suggests expanding Obamacare into a single-payer health care system (“Medicare for all”), declaring a moratorium on home foreclosures and evictions, reducing student debt, restoring "rigid controls" on wall Street; and getting the money out of politics. The “Fahrenheit 911” director also asks the president to free Bradley Manning, the Army Private facing charges of allegedly aiding the enemy for leaking national security documents to WikiLeaks, whom he calls an “American hero.”

Moore concludes by urging the president to “ask us to do something.” “You can't go this alone,” he said. “You need an army of everyday Americans who will fight alongside you to make this a more just and peaceful nation… Need a bill passed? Text us and we will mobilize! The Republicans are filibustering? We can stop them! They won't approve your choice for Secretary of State? We'll see about that! You say you were a community organizer. Please – start acting like one.” Moore says the nation has “rejected the crazed ideology of this Republican Party and we insist that you forcefully proceed in bringing about profound change that will improve the lives of the 99%.” “We're done hoping. We want real change,” he says.

Source

 

[The Rabbi]

Granny sez they done made their bed, let them lie in it.

 

[waltky]

Leon Panetta cussin' an' discussin' the fiscal cliff...

Panetta on Fiscal Cliff: Kicking the Can Down the Road Is the ‘Last Damn Thing I Need’
November 26, 2012 – Defense Secretary Leon Panetta said last week that the last thing he needs is for Congress to “kick the can down the road” on dealing with the fiscal cliff.

“The worst thing that can happen frankly from my perspective is if they just kick the can down the road. All that would wind up doing is continuing to present a shadow over the Defense Department and for that matter the rest of government as to what would happen, and that’s the damn last thing I need,” Panetta said in a speech at the Center for a New American Security on Nov. 20.

With the election over, Washington has turned its attention to “the unfinished business of Congress,” in particular “how to avoid sending us off the fiscal cliff, how to prevent sequestration from happening, and the impact that that would have, not just on the Defense, but the domestic discretionary budget as well,” he said. “And for our purposes, hopefully they will also take the time to pass the Defense authorization bill in order to be able to set some important policy guidance that we need as we go into this next year,” Panetta said. “The hope is that obviously these issues can be resolved before the Congress adjourns, and obviously, we are all hopeful that the leadership will be able to come together to find a way to resolve these issues,” the Defense secretary said.

Panetta said making tough decisions are part of the game, but he has faith that Congress can do it. “These are tough decisions. I’ve been there. I know how tough they are, but they can do it. They can do it. It’ll take some risk, but that’s part of the game is that you have to take risks in order to do the right thing, and I hope they do that,” he added.

Source

See also:

INFLUENCE GAME: Tax them, not us, groups say
November 26, 2012 WASHINGTON (AP) — A big coalition of business groups says there must be give-and-take in the negotiations to avoid the "fiscal cliff" of massive tax increases and spending cuts. But raising tax rates — a White House priority — is out of the question, the group adds.

The homebuilding industry says it won't tolerate even a nick in the mortgage interest deduction. It doesn't matter, industry leaders say, if it's part of a broad, spread-the-pain package designed to tame the soaring debt. And there's no ambiguity in the views of the top lobbying arm for retirees. "AARP to Washington: No cuts to Medicare and Social Security in last-minute budget deal" the group's Web site declares. AARP nixes the notion of slowing the cost-of-living formula for Social Security recipients, even if it's part of a big, bipartisan compromise package. And President Barack Obama should drop his idea of raising Medicare's eligibility age, AARP adds.

So much for the notion of shared sacrifice as Congress and the White House face a Dec. 31 deadline to craft a far-reaching deficit-reduction plan. If they fail, the government tips over the so-called fiscal cliff, at least for a time. Nearly everyone's taxes will rise, and federal programs will be whacked. Financial markets might quake, and a new recession could begin, economists say. In Washington, meanwhile, it's virtually every group for itself, scrambling to protect 100 percent of each tax break and government payout it now enjoys.

America is split down the middle politically, as the last half dozen presidential races have shown. Aside from a few think tanks and civic-minded groups, there's almost no talk of splitting the pain among interest groups, populations and professions in a manner that seems inevitable if lawmakers are to achieve the trillions of dollars in deficit-reduction both parties call for. The old adage, "Don't tax thee, don't tax me, tax the man behind the tree" was never more in vogue.

Of course, some of the tough talk may be posturing. No one wants to show a willingness to compromise at the start of a long, tough negotiating season. Still, the adamant positions that major interest groups are taking — and their insistence that sacrifices hit others, not them — underscore the difficulty Obama and congressional leaders face. The tougher a group talks to its members and the public, the harder it is to back down later when a bit of shared pain for everyone emerges as the only path to a deal. The line-in-the-sand talk begins, of course, with top politicians themselves.

More http://cnsnews.com/news/article/influence-game-tax-them-not-us-groups-say