Fiscal Cliff or Mega-Deal

Discussion in 'Politics' started by kyzr, Jul 1, 2012.

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How would you vote to deal with the "fiscal cliff"?

  1. Balance the budget at all costs, it will work out in the long-run

    2 vote(s)
    66.7%
  2. Cut spending and extend the tax cuts Deficits don't matter (I'm a Keynesian)

    1 vote(s)
    33.3%
  3. Pass Simpson-Bowles, extend tax cuts temporarily as a Mega-Deal

    0 vote(s)
    0.0%
  4. I'm a supply-sider cut spending & extend tax cuts (I'm also a 1%er)

    0 vote(s)
    0.0%
  1. kyzr
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    kyzr Gold Member

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    Now that Obamacare is semi-settled, the next big thing is the "fiscal cliff" at the end of 2012.

    The fiscal cliff has the economists' running around with their hair on fire saying that the US economy can't take the tax increase (end Bush Tax cut) and other spending cuts that the Tea Party negotiated.

    Lets put some of the options to a vote.

    Are you a "supply-sider" or a "Keynesian" or a "budget-balancer"?

    Edward Lazear: Three Views of the 'Fiscal Cliff' - WSJ.com
     
  2. kyzr
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    kyzr Gold Member

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    Doesn't anyone get that the US is essentially bankrupt? There is no money for Obamacare, or Medicaid, or even Medicare.
     
  3. Black_Label
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    Black_Label Registered Democrat

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    None of those options you listed are the answer.
    What needs to be done is to end the Bush tax cuts for the rich, end the insane military spending, end the war in Afghanistan and close loopholes that are allowing corporations and people like Romney to dodge taxes

    That alone will get the economy back on track in a hurry.
     
  4. Oddball
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    Oddball BANNED Supporting Member

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    Cut spending, then cut spending, then cut some more spending.

    With the feds taking in over $2.5 trillion, we have no revenue problem.
     
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  5. Jackson
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    Jackson Gold Member Supporting Member

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    May the next president know economics and the right people to put on his team for when we hit that fiscal cliff in the very near future.
     
  6. kyzr
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    kyzr Gold Member

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    I believe that you are also a budget cutter in the poll. (Option-1)
     
  7. kyzr
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    kyzr Gold Member

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    Please explain your concerns. IMHO the fiscal cliff is imaginary if the housing market and the US dollar keep gaining strength.

    I'm a budget balancer, the chips fall where they may. We need Simpson-Bowles and to start cutting entitlements.
     
  8. Jackson
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    Jackson Gold Member Supporting Member

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    I researched thru the internet and found the fiscal cliff to be a real dilemna that could befall us soon. This is what I learned.

    1. That is when they confront the wave of fiscal cliff decisions including how to handle expiration of temporary tax cuts that originated during the presidency of George W. Bush, $1.2 trillion in automatic spending cuts and the need to raise the debt ceiling again.
    Some members and partisan strategists are concluding that they might be better off doing nothing.

    2. They would come back in January with a new Congress relatively flush with cash - at least on paper - from the impact of the tax hikes; hit reset and start over to structure a new series of tax cuts. Call them the "Obama tax cuts" or "Romney tax cuts," depending on the victor in the November election.

    3. The risk of shaking the markets is always there. But they could mitigate that by telegraphing to voters and Wall Street in advance that they definitely intend to write some new tax cuts into law. It could take a couple months, or maybe even all of 2013 and beyond, but they promise they will do it and they promise they will make the tax cuts retroactive to January 1, 2013.
    Analysis: Jumping off the fiscal cliff - Chicago Tribune

    4. Potential late action this year by Congress on expired tax provisions might mean significant delays and complications for taxpayers filing returns in early 2013, National Taxpayer Advocate Nina Olson wrote in a report released today.

    5.Dozens of tax provisions that affect individuals expired at the end of 2011 and haven’t been renewed. These include the deduction for state and local sales taxes, the deduction for teachers’ out-of-pocket expenses and a so-called patch that prevents the alternative minimum tax from hitting an additional 26.6 million households.
    Fiscal Cliff Puts 2013 Tax Filing At Risk, Advocate Says - Bloomberg

    6. The fiscal cliff is a real crisis looming at year's end. The fragile U.S. economy could face an unparalleled fiscal punch of as much as $720 billion if the scheduled changes go through as planned. They include the Bush-era tax cuts set to expire Dec. 31 and billions of dollars in programmed federal spending cuts.

    7. U.S. Federal Reserve Chairman Ben Bernanke has warned that shocks from such changes will most likely cause the economy to contract, causing a recession.

    8. And without cooperation from Congress, there's no alternate route for the U.S. economy to take.

    9. Companies are starting to delay hiring and spending out of concern that Congress won’t reach a compromise in time to avoid automatic tax increases and budget cuts that would pull billions of dollars of purchasing power out of the economy.

    10. Faced with a so-called fiscal cliff of more than $600 billion in higher taxes and reductions in defense and other government programs in 2013, U.S. companies are pulling back, though the deadline for congressional action is more than six months away.
    Fiscal-Cliff Concerns Hurting Economy as Companies Hold Back - Businessweek

    11. Word has it that senators from both parties have begun discussing ways to avert the “fiscal cliff” — the tax increases and spending cuts slated to take effect starting in January and totaling some $700 billion next year alone.

    12.More power to them. If Congress does nothing to soften the blow of automatically higher taxes and lower spending, the changes would further devastate the economy and provoke a recession in 2013, according to the Congressional Budget Office and private analyses.

    13. On the other hand, if lawmakers decided to undo or delay all of the scheduled changes — in effect, extending today’s policies indefinitely — there would be no progress toward long-term deficit reduction, and that would raise the risk of fiscal crisis in the future.

    http://www.nytimes.com/2012/06/18/opinion/fiscal-cliffs-notes.html
     
  9. candycorn
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    candycorn Alis volat propriis

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    A Constitutional solution is the only real solution. The Constitution is mute on the topic. Next Congress...next President....same problems crop back up.
     
  10. Avorysuds
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    Avorysuds Gold Member

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    The end of the nation will happen before politicians take away vote buying welfare.
     

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