Senators Schumer and Corker discussed the fiscal cliff on Fox News Sunday today.
The term “fiscal cliff” was coined by Chairman Bernanke to describe the allegedly critical financial situation we find ourselves in. We will supposedly go over the cliff if the Bush tax cuts end (Clinton tax increases) and automatic sequestration comes into effect January 1, 2013.
There is a lot of discussion about whether or not there really is a cliff and if we didn’t already go over it given the condition of the economy.
President Obama has insisted on an increase in the rates for taxpayers who make over $200,000 for individuals and $250,000 for couples. Obama also demanded that the debt ceiling be abolished in his opening salvo to make a deal with House Republicans. [That's Chicago politics]
Speaker Boehner wants entitlement reform. Boehner originally said he would not accept a tax rate increase but would accept tax increases by eliminating some loopholes. Boehner is now calling taxes by the PC name “revenue” and appears to be caving on the tax rates.
Neither side is talking about cutting spending. Boehner is talking about a cut in the rate of spending. Obama might agree to cuts to the rate of spending if he gets his increase in taxes for the wealthy. The tax increases Obama wants will pay for the government for seven days. Our trillion dollar plus deficits will continue.
Be assured that the spending will continue to increase and our slide towards bankruptcy will continue. We are only discussing the speed with which it will happen.
The wealthy already pay more than their fair share. There is nothing fair about what is going on. It’s about a definition of fairness which is not based on accomplishment but rather on equal distribution of wealth. It rewards people just for existing and it does so at the expense of producers.
More than 47% of our population do not pay federal taxes and therefore have no stake in what our government does with “revenue.” It is not a plan for future success.
The Republicans are now saying they can’t do much with control of only the House. I think they are looking at this all wrong. They have the House and may not even have that next election so they had better make their last stand here a good one.