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President Obama's proposal to extend the middle-class tax cuts before reforming the tax code and...
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Thursday, November 15, 2012, 8:01 PM ETPresident Obama's proposal to extend the middle-class tax cuts before reforming the tax code and entitlements is a "sucker's game," declares Wilbur Ross. There's no trade-off there, it's just the president saying give me what I want, and I'll agree to talk about the rest later. What's being obscured by Washington is that the fiscal cliff issue isn't about taxes and revenue, but that our country is spending way too much. “You can't solve the bulk of the problem with revenues," Ross says. "It’s not going to happen.”
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The entitlement programs are actually redistributing wealth from one class of people to another, and the class that is paying is generally poorer than the class receiving. In this sense, the programs are distortionary and probably hamper GDP growth and create more poverty.
.... and immediately back into the economy where it continues to recirculate. Currently lots of cash is just sittin' idle, doing nuttin'. Just sayin'.
I understand the pressure from Medicare, VA-TRICARE etc. but the 'costs' don't end up in a black hole. Health care is a huge and productive part of our economy.
Great at deflection and the press is non existent and a joke. Remember Sam Donaldson? There is nobody like him today. He was a prick but he questioned people at least. No questions today.
Now it's "Mr President are you going to appear on The View? That is so much fun."
People are plenty nervous about the debt so this will only highlight it and then POTUS will come in Jan/Feb and ask for a rise in the debt limit. Those two back to back probably puts more pressure on him than the Reps.
Personally I would rather have the crap hit the fan as it might get us to start taking the debt seriously. And the economy as well. Better now than later. We are heading to $20 Trillion if we don't get serious.
I realize that's also not very positive, so here's one thing that I suspect would help though it amounts to another gift for the wealthy. Give a one year tax amnesty to large global corporations to allow them to repatriate offshore profits at 0%. That would lead to increased dividends in one year and an incentive to invest in new American companies. While I find this distasteful, I bet it would lead to a flood of money back into the country.
Also, for those who want spending cuts, look to Europe and understand that austerity does not work. The EU growth last quarter -.1 which is an improvement form the quarter before -.2 growth rate. You need more examples look at Greece & Spain extreme austerity and still no growth.
And if we are going to cut the Military is the perfect place to start and medicare and social security. We spend more on our military than the next 10 countries combined. Our government spends money on the F-22 which doesn't really work that great since it cuts of the oxygen to the pilots, doesn't fly in sand which means it can't be used where we need it to be used right now. We are about to see a brand new navy war ship the runs on a smaller crew but is more useful than current destroyers.
Do you want to know how much cutting Social Security benefits would save our country deficit a Whopping $0. You may me saying this guy is full of it but, the Social Security TAX that is taken out of you pay check pays for it.
I invite you to rip me a part since I am one of the few liberal on here but when you be respectful and use non partisan information
Actually austerity is forced on the borrowing countries. They don't choose it but rather they are told "No and pay us back now." That creates huge stresses on the borrowing country but they lost control over their destiny when the borrowed more than they could pay back comfortably. We could get to that point although we still have some wiggle room as we borrow in dollars and manage our own currency. But we will get to some flavor of that eventually. It seems like all democracies are destined for it as we look around the globe. It is the gravity of votes and free stuff from the government. It is just a natural force.
Cutting SSA benefits makes our government more credit worth so cut 'em. If we only had 16 Trillion in debt and no SSA, Medicare and future ACA we could relax and hit the beach.
The Fiscal Cliff is that big bad wolf that no one really wants to confront, because it will cripple economic growth in the near term. Problem is, there were two parties that spent like drunken sailors over the past decade that literally built the steep cliff we are peering over.
As long as the Fed enables this behavior through zero interest rates and debt monetization, our Congresscritters will continue to find a away to spend excessively. The behavior is already well-etrenched in the status quo. And these destructive behaviors do not just do a 180-degree turn overnight.
I'm with one other commenter (on another thread): this isn't a "Fiscal Cliff"; this is a "Spending Problem". The ratio of spending decreases to tax increases should be about 10-to-1 to make any real advance. And the latter needs to be meaningful.
This arguement is one of the dumbest being floated right now. There's lots of things on the table, tax increases for 250k+ is just one of them.
Issues need to be addressed, and this Act 1 of a long play. Obama has already suggested he'll look at entitlement cuts and tax reform. The point Obama is making is that they should push through what Dems and Repubs already agree on.
At the end of the day Repubs lost. No amount of maneuvering will change that. They have zero clout to fight the fiscal cliff so they are crying and whining.
It absolutely is the Obama-way or the highway right now.
And I think, for once, Obama gets it. And maybe he will lead, for once, instead of letting himself get pushed around like he has for the last 4 years.
For those not aware the drop dead date is not till the middle to end of February.
Many Dems believe that they can go back to making the Repubs the "Party of No" which might make the 2014 elections the opposite of 2010.
So who's in and who's folding. Place your bets early.
Obama has no intention of oil following through with entitlement cuts and tax reform. If the Reps. cave on taxes, they have lost any leverage they would have in the negotiations. Politicians have no character or personal integrity. Believe them at your peril.
"At the end of the day the Repubs lost". No they did not. The balance of power is the same today as before the election. Nothing has changed.
President - Dem
Senate - Dem controlled
House - Rep controlled.
What leverage? Wake up.
Right.
So. Repubs can continue to obstruct -everything- coming into Congress, and we can continue stalemated till 2014. That's an AWESOME plan.
If Obama pulls a Clinton he could have a very successful 2nd term. However Clinton was a pragmatist and was not wedded too deeply to ideology. Clinton talked left but governed in the center.
If Obama stays left or goes further left he will run himself off the cliff as the large debt number will be tattooed on his forehead. Reps don't need to do much of anything.
And the power is not in the parties anyways. It is in the size of the debt. Eventually debt always rules. It is a steamroller.
Welcome to Greece. It is starting.
Our United States of America is a democratic republic that will continue to reject a usurpation of national wealth by the few who flex the whim of the House and various political organizations.
The best thing about the RRR campaign is that it clearly exposed to public view the venality, disdain for personal liberty and co-existant interests of great wealth plus good old 1930s politics.
Congress will have to realize the fact that they are elected to represent each district citizen, not the personhood of corporations, or look forward to a super majority for the DNC in 2014.
My guess is a compromise for Thanksgiving.
FIFY.