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Sunday, December 30, 2012

Fiscal cliff, No deal.

The clock is ticking out on the Fiscal Cliff curb deal to avoid returning taxes back to the Clinton era rates as well spending cuts in the Defense budget, domestic spending and the end of the unemployment extensions.

Pundits have literally been screaming at the leaders in Washington to make a deal, but only to placate the markets and avoid the defense cuts.

I've been an advocate of going over the cliff and letting the tax cuts expire for the millionaires and billionaires. Remember that the wealthy took 93% of the gains in the recovery so it's only fair they should be the ones to take a cut and have to tighten their belts.

While the ending of the extension of unemployment benefits sucks, at least the right can no longer hold it hostage for future debt fights as a way to pressure the president to extend tax cuts for millionaires and billionaires, like in 2010.

I'm also fine with going over the cliff because we need to cut defense and use that money for either debt reduction or massive infrastructure spending to create jobs and build our way out of this recession.

We also have to remember that any changes to the tax code made after January 1st are retroactive, so if the president proposes a tax cut for 98% of Americans it would go into effect immediately and no one in that group would see any effect on their tax rates.

We also got the political angle of this, sequestration is ultimately a win for president Obama. Our president was given a mandate by the voters to tax the rich, help create jobs, and solve the deficit without doing it on the backs of the poor and middle class. To be honest the American people do not care as much about the debt and deficits as they do about jobs.

Americans also care about fairness. The wealthy should not be paying less in taxes than a middle class family. Those people on Social Security should not be paid less in benefits so that a multimillionaire can get a tax cut. The most profitable companies on Earth should not get a tax refund for normal operations.

It's a loss for Republicans because they're now faced with taxes going up for everyone because they showed their true colors by holding out for a deal that protects the rich while advocating for entitlement reform. And let's see them try to block a tax cut for 98% of Americans so they can try and cut taxes for the rich if we do go over the cliff.

The latest news is that the Senate is completely stalled, and with the deadline now passed it looks very likely that we're going to go over the curb.

Way to go Republicans, despite President Obamas best efforts, he still wins and you've only showed for the thousandth time that you're the party, for and of the very rich.

1 comment:

  1. The Republicans did not expect the Democrats to hold out the way they have. Unfortunately the Democrats are not being stubborn enough in my book and have made compromises they shouldn't have, but they are still pissing off the Republicans in office enough to amuse me. I hope we go over the edge, the people it will most hurt are the people at the top. They are in a lose/lose situation at this point. Information will set us free if people will stop relying on Fox news for their lies of the day.