Unfortunately, we’re going to go off the Fiscal Cliff. Our Washington Lawmakers have started their vacations, the President is in Hawaii, and Nancy Pelosi’s vacation starts Monday. Negotiations have stopped (as of now), and even though the GOP has stated that they will stay in Washington to work something out, they probably won’t. If a major deal would have been made, it would have been made weeks ago. I predict that a deal will be made, somewhere in the $50-80 Billion dollar range, holding up the Government for a few more weeks.
But if a deal isn’t reached, the automatic spending cuts and tax increases will be made. In the instance that these cuts are implemented, we will see spending drastically decrease in all areas, including defense, education, and entitlements. In the instance that these tax increases are implemented, middle class families will have a several thousand dollar increase on their tax bills, and those making a million a year will have a $250,000 increase. Yes, $250,000 is not a typo.
Whether or not you disagree with the take hikes or the spending cuts, it is the first step in the direction towards a changed America. Not only will the actual first step been made towards deficit reduction, but the first recent change of direction for American spending philosophy will have been made.
The Tea-Partiers have argued that they won’t budge on tax hikes, but they don’t seem to realize that if they don’t budge, a deal won’t be reached. If a deal won’t be reached, the automatic tax hikes will kick in. These hikes are 10x what the Democrats want. The Democrats won’t move on spending cuts, so a deal can’t be reached there as well. The spending cuts, initiated by the Automatic cuts, are 10x what the Republicans want.
This is a lesson in bipartisanship; We cannot reach a deal because select lawmakers won’t move beyond politics, and won’t move for the country. If we go over the cliff because of these reasons, everything these lawmakers didn’t want to happen, will happen. And more than that, they will lose re-election.
December 23rd, 2012 at 6:43 am
Yeah, Ryan, good point. I too believe that this has been some weird theater we’ve been witness to. Taxes will all go up next month; then they’ll cut most of them back so that nobody can get primaried for having voted to raise taxes.
December 23rd, 2012 at 6:56 am
According to the Wall Street Journal story today, Obama made it clear to Boehner that he was not going to offer any spending cuts. But what else can we expect from an idiot president who has yet to truly get a single, federal budget passed? The USA has been on autopilot since Jan.’09 and is flying straight towards a mountain of debt.
December 23rd, 2012 at 1:22 pm
Ryan, you would have been better off had you excluded the part about the $250K not being a typo.
According to Roberton Williams at the Tax Policy Center, 99% of those making $1 million or more would pay on average $158,027 more.
95% of those making between $500,000 and $1 million would pay on average $16,838 more.
December 23rd, 2012 at 3:32 pm
It doesnt matter Ronney.
The top percenters and those grossing more than 250K are the employers,business owners etc.
Whatever tax increases they see will be offset by raising prices on the middle class.
‘Tis the nature of the beast.
All the leftists will gain is the illusion that they’re only sticking it to the rich guy.