What is the real “Fiscal Cliff”?
During his victory lap, the President had this to say:
“[W]e can’t just cut our way to prosperity,” he said, “If we’re serious about reducing the deficit, we have to combine spending cuts with revenue — and that means asking the wealthiest Americans to pay a little more in taxes. That’s how we did it in the 1990s, when Bill Clinton was president.””
Actually Barry, ‘how we did it’ in the 1990’s was with total Federal Spending BELOW $1.7T a year and spending BELOW tax receipts. Moron.
This is the kind of ignorant insight you get when you elect a community organizer that never held a job outside of academia or the public sector a day in his life. Let me tell you what you can’t do (listen up Keynesian economists) – you can’t SPEND your way to prosperity. If you could, we would be enjoying record GDP growth and full employment. Let me share the facts:
In pre recession 2007, fiscal spending was $2.7T with revenue – aka confiscated funds – at a record high of $2.5T. Yes, despite those nasty Bush tax cuts, tax receipts were at an all time high. Imagine that. For fiscal 2012 Federal spending is projected at $3.5T or $800B higher versus 2007. $800B… why is that number familiar? Oh I remember now, it is the one time stimulus the Democrats said we had to have back on 2009 to keep unemployment under 8%. Notice how that one time outlay has been folded neatly into the baseline?
So, not only did Obama get his original $800B stimulus, he got it 3 additional times. What did you, the American tax payer get for your $2.4T investment? 8% unemployment, 15% u6 unemployment, record numbers of Americans on food stamps and disability, 1-2% GDP growth and over $5T added to the national debt.
There is one other interesting fact in that table. Despite the Bush tax cuts still being in effect, look at projected 2012 tax receipts. They have grown steadily with the limping economy to near historic levels again. Yet we still have a massive debt problem. See the connection? Increases in taxes are NEVER applied to reducing our national debt. They are ALWAYS applied to justify higher levels of spending.
We have a spending problem.
We have a low economic growth problem
We have a bunch of ideologues in the power who know nothing about the economy
Their plan, raise $80B in taxes by asking the ‘wealthy’ to pay their fair share. “Fair Share” is nothing more than the anthem for the looter class that doesn’t produce or accept responsibility. We can argue those points another day. Today I want to focus on two things. First, the monies raised through that tax will do nothing to reduce our national debt. REPEAT – It will do nothing to REDUCE our national debt. Best case, BEST CASE, it slows the growth of the accumulation of that debt from $1T a year to $900B a year. Congratulations. Feel better now?
Second, it is implausible to believe those taxes would not impact economic growth as the majority of those hit by the rate increase are small businesses. One only needs to look at the post election headlines to see the impact tax policies are having on hiring. Obamacare is already causing layoffs, reduced hiring plans or reduced employee hours. The economics are simple. Business can’t afford Obamacare and it is the employee and consumer that will feel the burden.
I have no sympathy for you if you voted for Obama because his plan to increase taxes was “not you”. Those people hold a special place in my heart. Next year you will get hit with massive tax increases. Obamacare has 20 of them. Investing in the stock market? Capital gains taxes are about to go through the roof. Hourly employee? Don’t expect more than 30 hours a week as that is the obamacare trigger for your employer. Do you realize it will be cheaper for your employer to pay the Obamacare fine versus pay your healthcare premium? Guess what happens then. You either get hit with higher costs from your employer to make up the difference OR they dump you into the national healthcare exchange. Sorry, I don’t mean to laugh because this isn’t funny. It’s actually quite sad.
Finally, just look at the spending levels. You’re deluding yourself if you truly believe they won’t come for you with tax increases. You know who really wants to let the Fiscal Cliff occur – Democrats. They get to raise taxes on everyone (their ideal plan anyway), keep spending at sky high levels and blame the republicans for it. You’re pawns in a game you didn’t realize was being played. If you did, Romney would be President elect.
The current debate in Washington is not about taxes on a portion of our population. The debate is, or at least should be, about the immoral spending by our Federal Government that is going to destroy this nation from the inside. This is the equivalent of using your kids college fund to pay for a vacation you don’t take them on. It isn’t a fiscal cliff – it is generational theft.