Here we gooooooo, over the cliff. But the market was up. Happy New Year ya all.
It had to happen, and it was by design, it is no accident. The Republicans knew that the top 1% were going to need to pay more taxes, but all but one of them had signed an agreement with the top 1% to not raise taxes. If they violate this agreement, then the top 1% will dump millions into PAC ads in the next primary in their district and replace them with one of their TEA party puppets.
So to accomplish what is needed, they orchestrated a deal whereby the taxes would go up automatically and they could blame it on the Democrats, and the Democrats joined in because they could blame the Republicans for cuts in Defense spending. Its the perfect blame storm.
After we go over the cliff, both parties can now compromise and claim that they saved the essential things their party needed or promised. Any compromise will now include a tax cut of some kind, but its a tax cut on Clinton era rates, not current rates and the Democrats will salvage some social programs.
“Here we gooooooo, over the cliff.”
For at least a day, but I suspect longer.
Neither party offers a long term solution to managing the federal budget. Each party panders to its constituencies. Only when a candidate can find solid support from a well informed and practical constituency can there be a change for long term stability. And even then foreign dilemmas can quickly trash things.
"well informed and practical constituency…"
They are few and far between.
There should be strict term limits and no tenure for anything,you would get promoted on merit and when they go as high as they can go,bow out! Politics sure screws the ones who are not in the click-Kevin
“Neither party offers a solution…”
Without sounding like a liberal weener, it has been done a few times since the second world war…mostly by the same party.
Debt increases over the previous administration, a better indicator because everyone is saddled with the spending programs of the past…has been less on with the same party. Even Obama’s 1.7 trillion increased in our debt because of his programs pale to the more than 5.5 trillion in debt increase inspired by that fiscal conservative George Bush. George used the same spending strategy of Reagan who turned us from the biggest loaner nation to the biggest debtor nation in the world, setting up his trend.
So, when you say neither party offers a solution, please check history. Debt is the big ploy of the republicans as an excuse to do the most unpopular for all…cut Medicare and Social Security for all, under the guise of securing the debt, which they had NO inclination to ever do in the past. Why we “olderfarders” still vote for those who would cut our own throats, I will never know.
From the latest happenings it appears that the “cliff” has just been MOVED down the road for 6 months or so.
The Can Has Been Kicked. The Question Is, “Can These Clowns Be Dragged Into Some Serious Spending Cuts With Nothing Considered To Sacred To Escape The Axe ?”
Social security and medicare are ponzi schemes that, in their current form, are unsustainable. We need to look at a flat tax or at least a much simpler system. Everybody needs to pay something in taxes, everybody. We can’t afford indifinite unemployment benefits or food stamps for one in 7 citizens. ObamaCare will stifle economic growth.
I wish that every government program, across the board, had its budget cut by a large enough rate to cut the deficit and lead to reducing debt. The government should be required to prepare a budget (oh wait, they already are) and it must balance and then some. This necessity for raising the debt ceiling has to stop, now.
I’m not so selfish as to want my social security and medicare benefits protected from a haircut. I didn’t even ask for these things. I don’t want to be in the very first generation to leave my kids worse off than I had it. That is selfish and will backlash.
I look at what my two kids will be facing in the future. My son, already in the work force, sees what’s going on with these clowns in Washington and has decided that he’s not expecting any worthwhile government benefits when he retires. He is well on his way to creating a very substantial nest egg. My daughter will do the same when she goes through college.
I can tell you that many of these younger folks, my kids included, don’t want to pay for their own retirement and sombody else’s too, and rightfully so.
The republicans need to try again with cut, cap, and balance and keep stonewalling the liberal democrat spend thrifts until they get it. I really believe that that’s what Americans want. Even if they don’t, we’re headed for a wreck if drastic measure aren’t taken. Party’s over. Pay the fiddler.
I am willing to step up. Cut govenment spending, slash social programs, cut my benefits and raise my taxes some more, but get a handle on debt. There is no choice.
Disclaimer: By the way, before any says I’m getting my marching orders from Faux News or whatever, these are my own observations of my own situation, family, and government. I don’t receive or watch Fox News. These are my feelings and opinions.
CSA
When we end
(1) subsidies to
oil companies,
ethanol producers,
agricultural conglomerates,
private enterprizes,
(2) bailouts to private enterprizes that cannot compete,
(3) grants to study bovine flatulance and other such nonsense,
(4) “pork barrel projects” like the $70M++ that was spent to build a new FBO headquarters in Sen. Robert Byrd’s home district while the feds were already in possession of millions of square feet of vacant offiice space, and the countless “bridges to nowhere”,
(5) Obamacare (laughingly titled the “affordable Care Act”) which is going to cost us countless billions in tax dollars and not provide one dime of relief…it only forces us to buy insurance, it provides nothing…
(6) the countless billions we grant to countries that in many cases aren’t even friendly to us
And a few other pet peves on my list, THEN we can discuss the need for more revenue…which we then won’t need.
SS and Medicare are EARNED entitlements. We spent our lives paying into these systems, which had they not been robbed during the times of prosperity would be solvent, and we now have a right to get what we paid for. Although I’m not against “means testing”.
Why is it that everyone talks about cutting back military spending, SS, and Medicare/medicaid and nobody talks about cutting anything on the list above? How about if we step back and ask “what is the function of government and the purtpose of taxation?” and cut out all the expenses that don’t fullfill those functions?\
Let us stop blaming those who don;t want to raise taxes and start pointing the finger at those that are wasting truckloads of our tax dollars.
TSM, I’m With You. I Agree On Your Choice Of Cuts And Spending And The Military.
I don’t favor tax increases for anybody. The only problem is that I can’t see these nice folks in Washington slashing spending and not raising taxes. They can’t even make any spending cuts. It looks to me like we need to do both as a “compromise” to get anything done, at all.
The other problem is the younger generations. When we adults present them with record debt, few jobs, ObamaCare or fines, and kick back accepting our entitlements, how long will it take for some serious backlash. As I said, my kids don’t expect any entitlements when they retire, even though they’ll pay into them for us.
If some action was taken, like what you’re talking about then maybe we could make these entitlement more secure, but I just don’t see a trend in that direction. It seems that tax and spend is the soup de jour. How can we get out of it ?
CSA
We Don’t Need More Tax Increases To Solve Our Problem. We Need:
Less Spending
More Tax Payers
CSA
CSA, I agree with you on all points, but I wish the “cutting” would be done before the “tax raising”. My gut tells me that if we did the “cutting” first, we might not have to raise taxes to pay off the debt. I’m also of the opinion that cutting spending is far, far more likely to result in an economic turnaround than raising taxes.
Very few politicians are willing to sit down and actually agree on what to be cut. Especially this congress. They are fundamentally opposed in every way.
Correct, Mike. Major Philosophical Differences Collide And Lock.
Perhaps if congress knew there would be no more raises of the debt ceiling and no increase of tax revenues - living within one’s means - as regular folks must, then some sort of spending controls could be negotiated. As it is now, there is little incentive to change business as usual.
It’s wishful thinking, I know. Besides, it wouldn’t work. Do you know why ? Because it makes too much sense.
CSA
Think what a normal family in the same disastrous financial condition would do:
- Not renew magazine subscriptions and not buy any either
- Stop eating out, and bring a thermos of coffeee and sandwiches to work
3 Temporarily stop charitable donations
4.Stop going on long sunday drives
5 Stop buying new clothes; make existing ones do - Plant vegetables in back yard
- Buy cheaper cuts of meat, prepare your own food, bake your own bread
- Change your own oil and wash the car yourself
9.Only do needed repairs on home; postpone major renovations.
etc., etc., etc.
The concept of zero base budgeting is often used in industry to get a company on a profitable basis. I just read that bio diesel subsidies have been renewed!! The message appently has not gone through yet; you can’t sensibly subsidize anything with borrowed money.
The Chinese must be completely baffled how a country that leads the world in so many things can act so stupidly!
I hold out little hope that Congress will agree with any spending cuts other than the military, social security, and medicare/medicaid. And those are the three that should NOT be cut. A strong military is crutial for us to remain a world power and national security. And SS and medicare/medicaid are safety net programs that we paid/pay for. I support structural changes such as means testing, but I do not support cutting benefits.
Like your freedom? Keep our military strong.
Docnick, That’s It !
By the way, my life style pretty much fits with your list. I don’t have cable or sattelite or exotic electronic communication devices and don’t use credit cards. Don’t forget those expenses.
Time for Washington to cut up the credit cards, too.
CSA
I agree with you MB…except on the Military. while I fundamentally agree that we need a strong military…there’s so much waste in defense contracts. Having a presence in Japan and South Korea costs us BILLIONS every year.
But what spending do you wish to cut, CSA? The Pentagon is the single greatest money pit and the fear mongerers keep telling US how they are struggling to hold the line against the goat farmers in Afganistan. We are to fund a $trillion aircraft project to protect the oil and gas pipelines that are being built across the middle east from camel herders. The vast debt that the country faces is the result of cutting taxes on the wealthy while throwing $trillions into fignting terror(?). Your children’s future was spent paying Halliburton and Blackwater $billions.
For several years I was fortunate enough to earn an income that put me in the 42% bracket (included self-employment tax) and like so many Tea Party activists it seemed that I was being robbed to support the lazy and irresponsible. But somewhare between Perot and Kuwait I began to look beyond the smoke and mirrors to see that those lazy people that I was supporting were paying FICA taxes on every cent of their minimum wage income that was being shrunk through cost of living increases to well below poverty. Poverty was growing quickly and food stamps and EIC checks were all that kept the poor from being homeless and hungry. But as the poor population swelled the Wall St graph pointed upward and the country continued to blame the poor for their poverty as more middle class jobs went to China. The poor are with us. Should we usher them off to the hinter lands to starve to death or die for lack of medical care? The GOP’s solution is to cut off all support and force the poor to beg for work and take whatever is offered and eliminate minimum wage, eliminate the 40 hour week and eliminate overtime wages. How will that work?