The media’s incessant and dire warnings notwithstanding, the “fiscal cliff” is no cliff at all. Judging by some of the recent comments posted and a couple of emails I received over the past few days, I think it’s important to make this clear and simple.
1. The sequester was an abrogation of fiscal responsibility. It was the President’s bad idea but Congress is to blame for going along with it.
2. There is no mandate to raise taxes. Obama won the popular vote by 3%, yet the Republicans hold an 8% edge in Congressional seats. The truth is that Americans are still deeply divided. Both sides are in the same position in terms of public support when it comes to addressing fiscal issues.
3. The real fiscal cliff is the $16 trillion in national debt, not the taxes and “mandatory cuts” that would trigger without “a deal,” as these can be countered with spending in other legislation. Entitlements (social security, Medicare, and Medicaid) comprise 2/3 of the spending, so the cliff will remain until these are reformed, not just tweaked. Cuts in the other 1/3 of the budget are needed to bring Washington back in line with its limited Constitutional role. Negotiating a sound agreement is a good idea, but the deal must be a good one and we must understand that it will not remove the cliff.
If you are convinced that the fiscal cliff is all that the media and many politicians are telling you, then consider the following: We have been told that the taxes and cuts mandated by the sequester will push the economy over the cliff, yet we have also been also been told that a deal containing the same level of taxes and cuts transferred to different wage earners and programs can actually promote economic growth and instill confidence. Transferring tax liabilities from one group of wage earners to another might be good or bad, but the economy doesn’t perform better when high wage earners pay a higher percentage of the same total. This is illogical.
The President and his supporters in the media used the scare tactics when he promoted his $787 billion stimulus package. He won the day and we spend the money, yet the economy has yet to strengthen. Let’s not be fooled again.
I really can’t afford to pay more taxes without triming somewhere else. I’m sure I’m not alone. The uncertainty of not knowing is worse then any other effect. If we know our taxes are going to go up by ‘X$’, then we can make plans to accomodate. Not knowing leaves me frozen.
Why not go over the so called cliff? That seems to be the only sure vehicle to cut into government spending. It’s about time they learned to deal with “No, you can’t have that program. No, you don’t have the funds to do that.” Something needs to force the government to focus on providing the true necessary services, and get out of funding all of the unnecessary “projects”
The Republicans will be blamed by the Presdient, Democrats and the media if there is no deal and we go over the so-called cliff. Republicans will also be blamed if there is a deal, because it won’t be perfect, won’t fix anything and will result in some small cuts here and there, which will be called “draconian” even though they are relatively minor…”tweaks” as you perfectly called them Dr. Parnell. Republicans will blame other Republicans if they cave and make a “deal”, i.e. raise some taxes. This is a no-win situation for Republicans. So I say give us all a dose of reality and hold the line. Make no deal. Let’s all get a dose of reality on this so-called cliff.
It’s time for the Reps to stand up and be counted. Put a simple, effective plan on the table that addresses entitlements, freezes discretionary spending, and eliminates some tax breaks for top earners to placate the Dems. Force Obama to take it or leave it.
Everyone is saying the Republicans have the biggest risk with the fiscal cliff. Did they forget that the House majority just got reelected? Probably to a great extent for their stance against raising taxes. The risk for them is if they cave and allow the tax increases. They would be better served to let the fiscal cliff happen.
What’s all the fuss about anyway? These are the same rates we had under the amazingly properous Clinton Administration. And the 47% who don’t pay taxes won’t be affected by an increase in rates. They will be affected by the resumption of payroll taxes which is as it should be. Long-time unemployed will be affected by the expiration of benefits, as they should be.
The election was not about the economy. The voters rejected prosperity and jobs in favor of entitlements and big government. Those both cost money. The employed class is going to have to foot the bill. The sooner they realize that, the better.