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Lawmakers Toe The Fiscal Cliff

December 27, 2012 by  

Lawmakers Toe The Fiscal Cliff
PHOTOS.COM

America’s fiscal cliff anxiety is reaching a climax as lawmakers are expected to come to an agreement—for better or worse—sometime within the next ten days.

Most economic experts agree on three things: 1) Lawmakers are highly unlikely to reach an agreement before Jan. 1, when deep automatic spending cuts and crippling tax increases will automatically occur. 2) When they do implement a fiscal cliff plan, it will probably be little more than a quick-fix to avert only the harshest consequences of their failure avert the cliff. 3) Talks over the fiscal cliff have become more about political grandstanding and less about protecting Americans’ bottom lines.

President Barack Obama reportedly cut short his Hawaiian Christmas vacation Wednesday in order to return to Washington and ready himself for a Senate proposal on a fiscal cliff plan. The President and fellow Democrats are unwavering in demanding that high-income Americans not be sheltered by Bush-era tax cuts after the Jan. 1 deadline. Meanwhile, Republican opposition to any tax increase has been strong.

The two sides seemingly made progress last week when Obama offered to set $400,000 as the income threshold for a tax rate increase rather than the $250,000 he had originally proposed. Republican House Speaker John Boehner countered the President’s proposal with a $1 million income threshold for the tax increase, but was quickly cut down by other members of the GOP who outright oppose any tax increase.

More recently, GOP lawmakers appear to be softening in their opposition to higher tax rates because pressure from Democrats is creating a situation of political gridlock and making even small fiscal cliff agreements impossible.

Representative Nan Hayworth (R-N.Y.) said on CNN, acknowledging that Republicans have little choice but to allow some tax increases: “If that’s where people have to go, we’ll make the threshold as high as we can. Because the more relief we provide, the better off we’ll be.”

The GOP’s weakening stance on higher taxes has provoked threats from anti-tax crusader Grover Norquist, who vows to mount political assault in the form of primary challenges against Republicans who violate a pledge they signed against ever voting for a tax increase.

Meanwhile, as lawmakers continue to fail to create a plan, the economy is already experiencing the initial impact of what may result from the underwhelming political response to impending fiscal calamity. On Wednesday, reports from Wall Street indicated a weakening stock market despite being on the heels of the usually rallying holiday season.

“There’s just no certainty and people don’t know where to step,” Stephen Guilfoyle of Meridian Equity Partners told NBC. “We’re kind of in a quandary here—the market didn’t catch at 1,422 like it was supposed to and the next catch point is 1,415 on the S&P. There’s not a lot of volume and you have a lot of traders with question marks on their heads right now.”

Sam Rolley

Staff writer Sam Rolley began a career in journalism working for a small town newspaper while seeking a B.A. in English. After learning about many of the biases present in most modern newsrooms, Rolley became determined to find a position in journalism that would allow him to combat the unsavory image that the news industry has gained. He is dedicated to seeking the truth and exposing the lies disseminated by the mainstream media at the behest of their corporate masters, special interest groups and information gatekeepers.

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  • Warrior

    Hmmm, this “fundamental transformation” stuff may be more difficult than thought. Maybe there’s still a few “non-believers” in the crowd?

    • FreedomFighter

      “There is a chill that is settling in over the country. In my years on the planet, I have never seen such a foreboding of collective dread and doom. The re-election of Obama has seemingly brought these feelings of extreme apprehension to the forefront. My sources, retired ex-feds, tell me that America is in much more danger than just a looming and catastrophic depression, resulting food riots and extreme government suppression of civil disobedience. Soon,if my sources are correct, nobody will be safe, not even the politicians. I would add that my sources, as revealed in part one of this series, are voting with their feet as they are joining other ex-federal official and several hundred Wall Street bankers by going into hiding in order to escape what they believe is coming.”

      Why Ex-Feds and Wall Street Execs Are Going Into Hiding
      http://www.thecommonsenseshow.com/2012/12/27/why-ex-feds-and-wall-street-execs-are-going-into-hiding/

      Laus Deo
      Semper Fi

      • don m

        you’re right – lets fix it

        A nation in its death throes, poisoned from within, deceived, fouled and forsaken, lies in the “Washington” Towers of Babble awaiting its fate. The poster child is SSI, which is and always has been a trust fund with a trustee plus fiduciary covenants; all directly under the control of our nation’s executive, legislative, and judicial officers; all bound by oath and covenant to “preserve and protect” top down to the last person and penny spent! The mile wide money trail begs competent OUTSIDE audit and prosecution!

        The fact that SSI has been corrupted into the last stages of “pay-as-you-go” Ponzi schemes demands stopping the plunder, determining the out of pocket and future fund value pillaged, prosecution, and recovery of property! Acts to either walk away and leave 310 million victims penniless in old age, or significantly raise taxes on victims in order to mushroom the plunder, blatantly obstructs justice. Both are harshly prosecuted and punished in the private sector as well as state and local levels! Desecrated offices of honor stand as idols of infidelity, symbols of deception and destruction.

        Our “officer & below” messages and arguments are factually corrupted because no one knows how to establish consideration (loss & value) or the mathematical process necessary to reach reason and logic (simple deposit through future value and payback annuity programs). The average $43,500 wage SSI payback (18/65/78) is $1,188,224, but the fund is broke and it takes 2.8 workers SSI taxes funneled out of SSI deposits to pay one benefit. Geometric effects of 2.8: 1 every life cycle is mindboggling! Compound that by 694% (CPI numbers) inflation over the last working lifetime (1965-2011) and the currency-bond devaluation to $0.14 per dollar! Do we care about freedom, individual ownership, and life itself enough to sever the hands that destroy us, by simply demanding due process prosecution?? DOUBT IT? CHECK IT OUT! $1235/mo as illustrated requires less than 3% total to fund!!! Learn to use annuities and hold officials to the truth with prosecution!

        Here we sit, $16 trillion in bondage, $6trillion of it in the last 4 years, none of it with budget, checks & balances, or accountability; and all majority approved by culpable senators and representatives! They now brazenly celebrate the sick virtues of “compromise” needed to make things happen, There is no accounting principle or rule that isn’t violated. The felonies are countless and the application applies to aid & abetting regardless of how dumb the the violator is. AGAIN! JUST SAY HELL NO!

  • Johnc

    Tax and spend does not work when you tax fewer people and spend more for, those who will not work, & illegal aliens sucking the teat. Look at California even though they increased taxes they bring in less money the real answer is to spend less. Reduce the size of government and cut back on unnecessary spending. How can we send money to foreign governments namely the Muslim brotherhood controlled government of Egypt and arm them with 20 fighter jets which they will use to attack Israel Our president has the nerve to say he supports Israel. How can a president spend more that all the presidents combined including Bush an estimated 12 Trillion by the time he is finished with his present term and run 4 consecutive 1 Trillion plus deficits and claim he wants to help the American people. I believe he will help us..right into bankruptcy ..and he is going to make Americans pay an pay some more for being an economic power… He believes America is the cause of all the worlds problems so he is bent on destroying it. The wolves smell blood and are hell bent on attacking us because they sense we are weak. Obama has made us appear weak to our enemies

    • John R. Howell

      You hit the nail on the head when you said that Obama is intent on destroying this nation. I believe that the “Fiscal Cliff” is a scare tactic just like when they said that all the banks would fall into a “meltdown” if Congress didn’t rob billions out of the treasury to give to the banks as QE1 and QE2, then QE infinity. The bank CEOs took millions in bonus money, retired, and the banks failed anyway. If we do have a Fiscal Cliff, we can blame it on Obama, the biggest spender in the history of this nation. John R. Howell

    • old hill billy

      You’re right on. They called it treason back when this country was free & run by citizens instead of illegals and global tyrants!

  • STEVE E.

    In a way I would like to see the fiscal cliff. When the Obama voters see their smaller paychecks…Naa, they still would not get it.

  • http://gillysrooms.blogspot.com Gillysrooms from Australia

    I have the answer to help reduce expenditure and taxes at the same time. With all the guns you have in your American society, you dont really need the police or the army to defend yourselves. I think you could save $trillions if some of your patriotic citizens took it in turns to act as community police to maintain law and order, so saving enough money in no time to pay out your national debt. I think you should suggest this idea to Congressman John Boehner and to your President to help solve your taxing problems with the fiscal cliff.

    • Bob666

      WTF?

  • Thinking About

    I guess I saw failures several years ago. Anyone could realize the baby boomers was going to reach retirement age and this did not have anything to do with anyone being elected. After WW II lots of babies was born and guess hoe old they are now, 66 and down. No surprises, they are eligible to draw Social Security and het on Medicare. BTW, lots dies in Vietnam. Reagan did immigration reform in 1986, was going to fine employers who hired illegal, guess what, very little of of that happened. We have had a do nothing Congress, the worse record, even worse than when Truman was president and we wonder why we are having a fiscal cliff problem.

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