Sunday, December 23, 2012

9 days for the Cliff.

President Barack Obama and first lady Michelle Obama wave as they board Air Force One at Andrews Air Force Base, Md., Friday, Dec. 21, 2012 before departing for Hawaii.. Adieu FISCAL CLIFF.
With 9 days to go before the Fiscal Cliff President Obama landed in Hawaii on Saturday to begin his vacation, Washington went quiet for Christmas — even though the fiscal cliff deadline is just days away.

Negotiations remained at an impasse in the face of sweeping tax hikes and spending cuts that would automatically be triggered if a deal is not reached by Dec. 31.

Talks broke down this week, leaving Obama frustrated as he boarded Air Force One bound for his native state.

“There is absolutely no reason — none — not to protect these Americans from a tax hike,” Obama said at a White House news conference late Friday. “At the very least, let’s agree right now on what we already agree on.” Well OK .So, the President is still known as a 'my way or the highway' negotiator. Another way to look at is, the President gets a big win by going over the cliff (tax revenue and defense cuts), so he has no reason to negotiate. I thought the President would be working hard to avoid the "cliff" it seems that it was blown up in a big argument with  Speaker of the House John Boehner who  is home in Ohio. He recorded the weekly GOP address before leaving Washington, stressing the president's role in the failure to reach an agreement on the cliff. "What the president has offered so far simply won't do anything to solve our spending problem and begin to address our nation's crippling debt," he said in the recorded address, "The House has done its part to avert this entire fiscal cliff. ... The events of the past week make it clearer than ever that these measures reflect the will of the House." Right now Washington D.C. is a ghost town with no DEAL in sight . It might be rightly so . I believe that all these politicians including  the President DO WANT THE FISCAL CLIFF . The "cliff" would benefit both parties . It would "raise" taxes on EVERY AMERICAN , it would increase revenues . As a added PLUS the "cliff" would also "CUT SPENDING" nearly a trillion dollars . You see no wonder Obama is on Vacation , and the Speaker of the House Boehner is enjoying every minute  of the "media" side show. Certain politicians in the house are in a tough position. They have a pledge to never raise taxes up against a "fiscal cliff". Throw in a letter from conservative groups confirming positions and making it clear what could happen politically if certain legislation is passed. The "fiscal cliff" if it occurs could push the US and the world into another recession and eventually reduce spending so much our military could be weakened. Pledge against raising taxes for all or raising taxes on the top percent of the riches American's. We have had historically low tax rates for over a decade. Previous rates were managed by both parties over the years. Not to mention how a certain party will be impacted by no deal being reached. That all being said. Do they really believe that tax rates or revenues should never be raised? What if we go to war, want to pay down deficits, have environmental issues like storms? What about inflation? It is like a company saying no matter how much a product cost to produce or what our competition is doing we will never raise our prices. It is almost funny to think taxes should never be raised period.


Partly by fate, partly by design, some scary fiscal forces come together at the start of 2013 unless Congress and Obama act to stop them. They include:
  • Some $536 billion in tax increases, touching nearly all Americans, because various federal tax cuts and breaks expire at year's end.
  • About $110 billion in spending cuts divided equally between the military and most other federal departments. That's about 8 percent of their annual budgets, 9 percent for the Pentagon.
Taxes would jump $2,400 on average for families with incomes of $50,000 to $75,000, according to a study by the non-partisan Tax Policy Center. Because consumers would get less of their paychecks to spend, businesses and jobs would suffer.
At the same time, Americans would feel cuts in government services; some federal workers would be furloughed or laid off, and companies would lose government business. The nation would lose up to 3.4 million jobs, the Congressional Budget Office predicts.
  • Some 2 million jobless Americans may lose their federal unemployment aid. Obama wants to continue the benefits extension as part of the deal; Republicans say it's too costly.
  • Social Security recipients might see their checks grow more slowly. As part of a possible deal, Obama and Republican leaders want to change the way cost-of-living adjustments are calculated, which would mean smaller checks over the years for retirees who get Social Security, veterans' benefits or government pensions.
  • The price of milk could double. If Congress doesn't provide a fix for expiring dairy price supports before Jan. 1, milk-drinking families could feel the pinch. One scenario is to attach a farm bill extension to the fiscal cliff legislation — if a compromise is reached in time.
  • Millions of taxpayers who want to file their 2012 returns before mid-March will be held up while they wait to see if Congress comes through with a deal to stop the alternative minimum tax from hitting more people.

No comments:

Post a Comment