The Fiscal Cliff is Exactly What We Need

[jwoodie]

Once we cut through the campaign rhetoric, what we are left with is the paradox of a voting public which wants to maintain government benefits but want someone else (the "rich") to pay for them. Sorry, but the math just doesn't work out. Reality has to be embraced in the near future, and the sooner the better.

That reality is that benefits are going to have to be cut and taxes raised on everybody just to keep our heads above water. Isn't that what the Fiscal Cliff was designed to do? The idea of sparing the middle class from any tax increases is financially ludicrous. Even with complete elimination of all of the Bush tax cuts and the automatic spending cuts, we will still be digging ourselves deeper and deeper into debt.

In addition to these modest Fiscal Cliff provisions, we need to restore the SS tax cuts, eliminate the SS earnings cap and suspend all cost-of-living adjustments to government programs. Yes, the economy will take a hit in the short run, but fiscal reform and tax certainty would provide a huge boost to business investment and hiring in the long run.

This may be our last chance to prevent a permanent decline in the American standard of living.

 

[boedicca]

I'm inclined to agree. The continuation of the Bush tax rates combined with the payroll tax cut and other temporary credits have shielded many Americans from the true costs of Big Government. Maybe when they actually have to pay for it, they'll realize what a galactic Obamanation it is.

 

[Wiseacre]

The problem with the fiscal cliff is, it does nothing about entitlement reform. We're still left with unsustainable programs and an economy that is going nowhere. That's the problem in Europe, they raised taxes but haven't really addressed their spending issues. And that is a recipe for economic recessions.

 

[boedicca]

Just don't raise the debt ceiling.

 

[waltky]

Granny says dey gonna kick the can down the road...

Significant progress made in fiscal cliff discussions, sources say
Mon December 31, 2012 - Senate Democrats could balk at the plan, Sen. Tom Harkin warns; Negotiators are closer to a deal on the fiscal cliff, sources say; The potential deal calls for income and estate tax increases, sources say; The fiscal cliff triggers broad tax increases and an automatic $110 billion in spending cuts

A possible deal to avert the midnight deadline for the "fiscal cliff" of automatic tax increases and spending cuts began to take shape on Monday, including an agreement to raise the income tax rate on top earners to what it was during President Bill Clinton's last term in office, according to sources close to the process. But one leading Senate Democrat warned the deal could run into trouble -- not only from House Republicans who have long opposed any tax increase, but also from liberals in the Senate who oppose allowing more high-income households to escape a tax increase. "No deal is better than a bad deal, and this looks like a very bad deal the way this is shaping up," Sen. Tom Harkin, D-Iowa, said.

The proposal under discussion calls for rolling back tax rates on the highest-income earners to Clinton-era levels, increasing the estate tax rate, extending unemployment benefits and potentially putting off the $110 billion in automatic spending cuts called for in the legislation that created the cliff, according to sources close to the process. The two sides are closer to an agreement than they were on Sunday, the sources told CNN. But as the Senate opened for business Monday morning, Senate Majority Leader Harry Reid said negotiators remained apart on key issues. "There are still some issues that need to be resolved before we can bring legislation to the floor," the Nevada Democrat said.

Even if a deal is reached, it remains to be seen how the GOP-controlled House, which earlier refused to back a $1 million threshold for higher taxes, would respond to any deal. The proposed agreement would raise rates on top earners to Clinton-era levels, which topped out at 39.6% in 2000 before falling to the current 35% under tax cuts championed by President George W. Bush. It was unclear if the proposal would adjust the tax rates for inflation, but sources said it would spare 98% of Americans from any tax increase. Just who would pay higher taxes remained a moving target Monday. Sen. Dick Durbin, D-Illinois, said Republicans have now offered a $450,000 income threshold for individuals and $550,000 for couples. Democrats countered with $360,000 for individuals and $450,000 for couples, he said.

More Obama to speak on "fiscal cliff" - CNN.com

See also:

Deal reached to avoid spike in milk prices
WASHINGTON -- December 30, 2012

The top leaders in both parties on the House and Senate Agriculture committees have agreed to a one-year extension of the 2008 farm bill that expired in October, a move that would head off a possible doubling of milk prices next month.

Senate Agriculture Committee Chairman Debbie Stabenow indicated that the House could vote on it as early as Sunday evening. The agreement to extend current farm law until next October was reached as negotiators hit a snag on averting a broader fiscal cliff combination of higher taxes and spending cuts Jan. 1.

Agriculture Secretary Tom Vilsack said Americans faced the prospect of paying $7 for a gallon if the current dairy program lapsed and the government returned to a 1948 formula for calculating milk price supports.

http://www.nola.com/politics/index.ssf/2012/12/deal_reached_to_avoid_spike_in.html

 

[BreezeWood]

the fiscals cliff is the best solution and would not necessarily interrupt the economy.

 

[francoHFW]

One thing will end this mess, a recovery, which Debt cultists and pander to the bloated rich Pubs have stalled for months with self inflicted wounds like idiotic debt ceiling fights and refusal of jobs bills we've had forever.

BTW, I don't think Obama is going to be a one termer so you can cut the "no compromise, un-American Tea Party GOP" (TIME) crappe.

 

[nodoginnafight]

the fiscals cliff is the best solution and would not necessarily interrupt the economy.

IMHO - The fiscal cliff is not "the best" solution. I don't think it's the worst ... but it's no where near the best.

 

[boedicca]

the fiscals cliff is the best solution and would not necessarily interrupt the economy.

Considering that government spending has a negative multiplier effect on the country, the fiscal cliff combined with no increase in the debt ceiling, is our best option forward. There will be some short term pain, but far less than what will happen when the debt avalanche crashes down in the future.

 

[MostJadedGamer]

Deal reached to avoid spike in milk prices

Thats the only deal that really mattered. All the rest is just fluff

 

[francoHFW]

The problem with the fiscal cliff is, it does nothing about entitlement reform. We're still left with unsustainable programs and an economy that is going nowhere. That's the problem in Europe, they raised taxes but haven't really addressed their spending issues. And that is a recipe for economic recessions.

The EU and the rest of the world were fine before BOOOSH!! and the deregulate! huge debt! cut taxes! cronyism and corruption moron Pubs wrecked the world. You're a typical brainwashed Pub dupe. Change the channel.

Welfare etc is 12% of our budget, and is only THAT big because of the Great Recession. No new entitlement attitude, dumbazz racist dupes.

Why won't Pubs or dupes say WHAT spending to cut? A majority no longer beieve their BS and propaganda. They all believe their own BS now.

 

[nodoginnafight]

The fiscal cliff is like Civil War era surgery. Might be better than nothing. But removing a tumor with a scalpel is wiser than removing it with a hack saw.

 

[francoHFW]

the fiscals cliff is the best solution and would not necessarily interrupt the economy.

Considering that government spending has a negative multiplier effect on the country, the fiscal cliff combined with no increase in the debt ceiling, is our best option forward. There will be some short term pain, but far less than what will happen when the debt avalanche crashes down in the future.

"Debt avalanche" my azz! Where were you twits when Reagan tripled the debt and Booosh! doubled THAT? But in the Pub Great Recession we need austerity at all cost to protect the BLOATED rich.

You're brainwashed dupes of greedy rich morons, Big Health, Oil, Pharma, etc. PFFT! Get out of the fegging way of the adults, shytteheds.

Hoping for your recovery.

 

[boedicca]

the fiscals cliff is the best solution and would not necessarily interrupt the economy.

Considering that government spending has a negative multiplier effect on the country, the fiscal cliff combined with no increase in the debt ceiling, is our best option forward. There will be some short term pain, but far less than what will happen when the debt avalanche crashes down in the future.

"Debt avalanche" my azz! Where were you twits when Reagan tripled the debt and Booosh! doubled THAT? But in the Pub Great Recession we need austerity at all cost to protect the BLOATED rich.

You're brainwashed dupes of greedy rich morons, Big Health, Oil, Pharma, etc. PFFT! Get out of the fegging way of the adults, shytteheds.

Hoping for your recovery.

You are an idiot.

Try reading this and identifying the unfunded liabilities (which would be illegal for a corporation to not include on its balance sheet) - and compare them to the "official" debt levels.

http://www.fms.treas.gov/fr/index.html

 

[francoHFW]

Pure fear mongering Pubcrappe, dupe. The same statistical crappe could have been said under Reagan and Bush- you are BRAINWASHED. Get out of the way of growth, idiot TP.

 

[squinch]

Considering that government spending has a negative multiplier effect on the country, the fiscal cliff combined with no increase in the debt ceiling, is our best option forward. There will be some short term pain, but far less than what will happen when the debt avalanche crashes down in the future.

"Debt avalanche" my azz! Where were you twits when Reagan tripled the debt and Booosh! doubled THAT? But in the Pub Great Recession we need austerity at all cost to protect the BLOATED rich.

You're brainwashed dupes of greedy rich morons, Big Health, Oil, Pharma, etc. PFFT! Get out of the fegging way of the adults, shytteheds.

Hoping for your recovery.

You are an idiot.

Try reading this and identifying the unfunded liabilities (which would be illegal for a corporation to not include on its balance sheet) - and compare them to the "official" debt levels.

Current Report: Financial Report of the United States: Publications & Guidance: Financial Management Service

Reagan taught us that unfunded liabilities don't matter.

 

[Wiseacre]

"Debt avalanche" my azz! Where were you twits when Reagan tripled the debt and Booosh! doubled THAT? But in the Pub Great Recession we need austerity at all cost to protect the BLOATED rich.

You're brainwashed dupes of greedy rich morons, Big Health, Oil, Pharma, etc. PFFT! Get out of the fegging way of the adults, shytteheds.

Hoping for your recovery.

You are an idiot.

Try reading this and identifying the unfunded liabilities (which would be illegal for a corporation to not include on its balance sheet) - and compare them to the "official" debt levels.

Current Report: Financial Report of the United States: Publications & Guidance: Financial Management Service

Reagan taught us that unfunded liabilities don't matter.

You're an even bigger idiot than Franco is. And that's saying something. Reagan wanted reduced spending, which the democrats agreed to if he would increase taxes. He did, they didn't. So, you worthless pile of crap, maybe you should blame the democrats at least as much as the republicans.

 

[Toro]

the fiscals cliff is the best solution and would not necessarily interrupt the economy.

Of course it would.

 

[Sallow]

the fiscals cliff is the best solution and would not necessarily interrupt the economy.

Considering that government spending has a negative multiplier effect on the country, the fiscal cliff combined with no increase in the debt ceiling, is our best option forward. There will be some short term pain, but far less than what will happen when the debt avalanche crashes down in the future.

"Debt avalanche" my azz! Where were you twits when Reagan tripled the debt and Booosh! doubled THAT? But in the Pub Great Recession we need austerity at all cost to protect the BLOATED rich.

You're brainwashed dupes of greedy rich morons, Big Health, Oil, Pharma, etc. PFFT! Get out of the fegging way of the adults, shytteheds.

Hoping for your recovery.

Basically yeah.

Bush got rid of Paygo..and completely screwed the surplus.

Not a peep from conservatives who claim they are also "fiscally conservative".

Which basically kills their argument.

 

[Sallow]

You are an idiot.

Try reading this and identifying the unfunded liabilities (which would be illegal for a corporation to not include on its balance sheet) - and compare them to the "official" debt levels.

Current Report: Financial Report of the United States: Publications & Guidance: Financial Management Service

Reagan taught us that unfunded liabilities don't matter.

You're an even bigger idiot than Franco is. And that's saying something. Reagan wanted reduced spending, which the democrats agreed to if he would increase taxes. He did, they didn't. So, you worthless pile of crap, maybe you should blame the democrats at least as much as the republicans.

He absolutely did not want to reduce spending.

He spent like crazy.