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Thoughts on the "Fiscal Cliff"

First my apologies, for these comments on the "fiscal cliff" will not be as complete as I would like.

Based on information from a financial advisor, I understand the "fiscal cliff" to consist of the following events:
  • Expiration of general tax cuts, which will result in $255 billion revenue
  • Expiration of payroll tax cuts, which will result in $112 billion revenue
  • Sequestration hits which will cut $55 billion from the military budget (which could continue each year for 10 years), and cut $55 billion from non-defense spending in 2013
  • Implementation of an Alternative Minimum Tax patch, which will increase revenues by $38 billion
  • Implementation of PPACA (Obamacare) taxes on investments, which will generate $21 billion in revenue
This will result in a total of about $536 billion in additional revenue, or 3.5% of America's GDP, which will result in a negative GDP for early 2013--the "fiscal cliff."

I find it reprehensible that our national "leaders" are posturing as if they are our saviors from the "fiscal cliff" when they are the ones who created this problem.

Our "leaders" involved us in two wars, one (Iraq) most certainly a war of choice, on the cheap, meaning that the American people got tax breaks while the debts from the wars piled up.  It was as if we were being bribed to accept the wars, and now we are paying the price.  Anytime America chooses to go to war, the price of war needs to be immediately felt by the People so that we are more thoughtful about the wars we undertake in the future.  Now we see these wartime tax cuts going away--one component of the "fiscal cliff."

Our "leaders" passed Obamacare, another (unnecessary) component of the "fiscal cliff"...and a threat to our liberties.

Sequestration will happen because the budget supercommittee could not reach an agreement on how to cut $1.2 trillion deficit reduction package as per the Budget Control Act (August 2011). (source)  Another component of the "cliff."

And now we expect our "leaders" to do the right thing.  How can we when their behavior is to the contrary?  For example, the Senate has failed to pass a budget for the past four years.  This is clear dereliction of duty and Congress should either not receive their salaries until they pass a budget, or just go to jail.  And these are the people who will "save" us now?

Our current crisis has been generated by the national "leadership" on both sides of the aisle, not by some alien from another world.  They should be held accountable.  We need to go over this "fiscal cliff" and more so that the American people finally wake up and see our "leadership" for who they are and demand accountability.

It is clear by their actions that the people in all three branches of the government no longer represent We The People, but something else.  This drama being played out over the "fiscal cliff" obscures the real problem which is a true existential threat to our nation: our accelerating national debt.

--Against All Enemies

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Disclaimer: These opinions are solely my own, and do not reflect the opinions or official positions of any United States Government agency, organization or department.

As the Nation Heads Toward the Fiscal Cliff...

by: Les Carpenter
Rational Nation USA
Liberty
-vs- Tyranny



This is just a guess but I'm thinking I just might be the only fiscal conservative that understands what the President is saying. But then again there aren't any real fiscal conservatives in the nation's capital these days anyway. I find myself more and more each and every day wondering exactly what has happened to the conservatives of old. You know, the William Buckley, Barry Goldwater, Dwight Eisenhower, and the Gerald Ford types. The types that actually understood what conservatism (in these days aka classical liberalism) really means as well as recognizing that community and government actually can play a positive role while at the same time remaining as limited as reasonably possible.

Preparing for inevitable criticism from the false conservatives, as well as likely skepticism and taunts from the partisan liberal progressives I can only respond by saying... "Nuts". Or to put it another way "frankly I my dear I don't give a damn." Yeah, I know I'm cribbing.But when the quote makes sense I say use em.

President Obama may be many things I do not approve of politically. However, when you are right you are right. In my view both the rEpublican and dEmocrat parties bear responsibility for the eleventh hour drama surrounding the political fiscal cliff. And yes, it is true IMNHO the rEpublicans have been the most intransigent. That aside I applaud the sentiment of the President. In reality the damn Congress and Senate ought to be in DC tonight working their tails off finding a compromise for the American People. The millions of individuals whom they have been elected to both represent as well insure that both the public welfare and responsive government is maintained. For the past 12 years they have failed miserably.

The Weekly Standard - President Barack Obama tipped his hand today during a speech at the White House ... about how he plans to spend this New Year's Eve.

"Democrats and Republicans in Congress have to get this done," Obama said, according to a rush transcript, referencing the ongoing "fiscal cliff" talks. "But they're not there yet. They are close, but they're not there yet. And one thing we can count on with respect to this Congress is that if there is even one second left before you have to do what you're supposed to do, they will use that last second."

Obama then veered into his New Year's Eve plans. "So as of this point, it looks like I'm going to be spending New Year's here in D.C.," he said. "You all are going to be hanging out in D.C. too."

It's not clear where else he'd go, though his family is currently vacationing in Hawaii.

"I can come to your house? Is that what you said?" the president said, playing off the friendly White House audience. "I don't want to spoil the party. But the -- the people who are with me here today, the people who are watching at home, they need our leaders in Congress to succeed. They need us -- they need us to all stay focused on them, not on politics, not on, you know, special interests. They need to be focused on families, students, grandmas, you know, folks who are out there working really, really hard, and are just looking for a fair shot."

Yes the President lapsed into the liberal narrative that plays well with middle America and the poor. Given the current rEpublican and Tea Party stance I can hardly blame the guy. The lot of false conservatives have actually turned many who have always supported limited government and fiscal responsibility against the rEpublican party. Perhaps it is time we all started to think outside the Oligarchical box we so willingly allowed ourselves to be herded into.

Via: Memorandum

PS: Afterthoughts, The United States of America was created by great thinkers and politicians of the Age Enlightenment. Our great nation was built by the the generations immediately following.

Our founders made great compromises to achieve their vision of a nation under a limited government led by the governed. Today, two and a quarter centuries later we have politicians that can not only find workable compromise but do great dishonor to our founding principles.

But I suppose understanding this actually requires thinking beyond the rEpublican Tea Party myopic existence.

Senator Corker (R-Tenn.) Signaling Republican Shift...

Senator Corker (R-Tenn.) Signaling Republican Shift...
by: Les Carpenter
Rational Nation USA
Liberty
-vs- Tyranny


It appears more rEpublicans are either A) acquiescing to the Obama and democrat push for an increase in the tax rate for those making over $250,000.00 per year, or B) the rEpublicans are actually learning how to effectively negotiate and perhaps out maneuver the democrats long term. We'll just have to wait and see.

THE HILL - Sen. Bob Corker (R-Tenn.) on Sunday joined a growing chorus of Republicans who are open to higher tax rates for the richest Americans as part of a deal to avoid the “fiscal cliff.”

Corker, a member of the Senate Banking Committee, told “Fox News Sunday” that Democrats have the upper hand following the election. He said he was optimistic Congress would strike a deal within the next 23 days, even if it means agreeing to President Obama's plan to increase the top rate on individuals making more than $250,000 a year.

But Corker said he expected Democrats to accept spending cuts to entitlement programs such as Medicare.

“A lot of people are putting forth a theory – and I actually think it has merit – where you go and you give the president the 2 percent increase that he's talking about, the rate increase on the top 2 percent – and all of a sudden the shift goes back to entitlements,” Corker said. “And all of a sudden, once you give him a top rate on the 2 percent it's actually a much lesser tax increase than what he's been talking about.

“I actually am beginning to believe that is the best route for us to take,” Corker said, “to again shift the focus to where it needs to be, which is entitlements.”

The Republican-led House, however, is reluctant to agree to Obama’s demand for higher tax rates on the wealthy. This past week, Speaker John Boehner (R-Ohio) proposed raising $800 billion – half what the president wants – by limiting tax breaks, an offer the White House immediately dismissed.

Corker predicted that Republicans would gain the upper hand in future negotiations if they can prevent the tax hikes and spending cuts that are set to kick in on January 1. ... {Read More}

Via: Memeorandum

Representative Cole Advising Tax Deal to Prevent Going Over the Fiscal Cliff and Preserving Tax Cuts for 98% of Americans...

Representative Cole Advising Tax Deal to Prevent Going Over the Fiscal Cliff and Preserving Tax Cuts for 98% of Americans...
by: Les Carpenter
Rational Nation USA
Liberty
-vs- Tyranny


Is the following a voice of reason by Representative Cole (R-Okal.), or is it a voice for further statism and federal control of the individual's right to retain a larger share of their personal property? Dialogue begins just prior to the one minute mark in CNN video following excerpt.

THE HILL -... “So just let’s make sure for the 98 percent, they know they’re not. We can continue to fight on the other two percent and the higher rates,” Cole said.

The Oklahoma Republican said this would swing leverage over to Republicans in their negotiations with the White House to avoid going over the “fiscal cliff” — a set of massive tax increases and budget cuts that will go into effect early next year unless Congress acts.

“It’s quite the opposite. We gain leverage,” Cole said.

Not everyone is on board with Cole’s suggestion though within the House Republican caucus. Rep. Marsha Blackburn (R-Tenn.) said the election results show that tax increases are not what voters wanted.

“We won the House,” Blackburn said, appearing with Cole on CNN. “The American people have clearly said we don’t want our taxes to go up.”

The Tennessee Republican said she doesn’t see support for tax rates going up among House Republicans. That said, they are more open to tax reform that could bring in new tax revenue.

“I’m not sure there’s support for the rate hikes. There is support for revenue by cleaning up the code,” Blackburn said.

Speaker Boehner (R-Ohio) has proposed bringing in $800 billion in new tax revenue by likely capping or eliminating tax deductions. Cole said Boehner is on the right path but that compromise is on the cards.

“We are not getting 100 percent of what we want, but we can get a lot. John Boehner is trying to focus us where it belongs, and that’s on spending restraint and entitlement reform because this revenue won’t come close to dealing with our fiscal problems,” Cole said. ... {Read More}


Via: Memeorandum