Thursday, December 20, 2012

“Fiscal Cliff” Impasse – Pelosi, Boehner, Obama, Reid – What Compromise? Tax Hikes Certain, No Cuts Likely; Debt has No Ceiling, Nothing but Political Chicanery

The Impossible Task: Getting anything accomplished - image

One might come to the conclusion that the whole lot of those who “we the people” elected to make decisions on our behalf are, for lack of a better set of phrases, “out to lunch” and “out of touch”. The last three weeks or so, the big deal on the horizon has been the “Fiscal Cliff” – or where the government must act to prevent a slew of tax increases from occurring, while cutting the budget, and keeping both businesses happy, in order to continue recovery, and sustaining or increasing entitlement spending in order to please “everyone”. It’s all about the body politic and has little to do with reality.

The basic concept of spending money is not unique to this current crop in Washington; it is a lifestyle that has proliferated since the “temporary” income tax (to cover costs to fight WWII) morphed into a permanent stream of income for the Federal Government. The problem occurs when the Federal Government has fewer “taxpayers” and more programs than one can shake a stick at. The fact remains that without taxpayers, the government has no income- does not produce a product, does not offer a commercial service, does not have an unlimited trust fund from an old rich aunt or uncle. When, late in 2008 it appeared as though the world would end due to the burst of the housing bubble, and banks bad business decisions (some due to government regulations), with the prospects of a dire economic collapse on the horizon, President George W. Bush called the troops to Washington and they all agreed to bail out the banks. When President Obama took office in 2009, he decided to stave off more layoffs and underwater mortgages by jump starting the economy with a “Stimulus” in the billion. That tactic did not works as most of the money either went unspent or went to those who worked for a government – teachers, for example, we hired more teachers. We (as a nation) also bailed out and took ownership of “GM”, which was nearing bankruptcy, in order to “save jobs”. Apparently that didn’t work as, one has to have a stream of tax income from the private sector in order to pay for those teachers, and government employees of various skills, as again, the Government makes no money of its own.

How difficult is that to grasp? The government has two choices, increase revenue by raising taxes, and cutting unnecessary items from the budget – the only way that we, as a nation will get our house in order. The problem lays in the fact that the GOP would rather stick a fork in their collective eye than raise taxes, and the DNC (with the President at the head), would rather do the same than to cut one duplicate or totally unnecessary budget item and delete it from the budget. We appear to have an impasse and the press is screaming “Fiscal Cliff!

Apparently, no one in Washington is smarter than a 5th, 4th or 3rd grader (who is in a private school setting); otherwise, this debate would not even be occurring. The alleged debate has turned into name calling and avoidance.

Last week, as the specter of the Cliff loomed, Republican John Boehner, Speaker of the House, came up with a plan that mirrored, former speaker of the House, Democrat Nancy Pelosi’s plan as to tax increases and limited to no cuts (and throwing those down the road a bit) Conservatives were (and still are) ready to throw Boehner to the proverbial wolves, so anti-tax, and anti-spend a group has never graced the halls of congress since, the 1990’s.(Human Events). The plan was immediately rejected by the President. One might recall that the President and Nancy Pelosi play on the same team. It was John Boehner reaching across the aisle and giving an opening to the “other team” in an attempt to be bi-partisan. Suddenly, Boehner is under fire, for his “Plan B” (the Pelosi Plan) from and Harry Reid, Democrat, Senate Majority Leader got into a “pithing” match with Mitch McConnell (Republican) - over the whole shenanigans. Reid would not sign any bill that came from the house offering only taxes on those earning 1 million or more (the Pelosi-Boehner plan), and McConnell filibustered over Reid’s insistence that we raise the debt ceiling (increase the already limitless ability of the U.S. to borrow money (or print money that doesn’t exist). (Huffington Post).

The latest gambit is that the President is going to veto Plan B, and will not sign a bill unless the tax hikes go towards those earning $250,000 or $400,000, and he has put Social Security on the table, in return. (Reuters)

This was followed by the President, saying ”Take me out of it” (NBC News) and the GOP calling the President: “Irrational” (NRP)

Something the collective “we” should remember – we pay these people.

That‘s why we pay taxes, to pay for these collective idiots to screw around like 10 year olds at the playground.

Meanwhile, Rome is burning.

Here’s the most likely outcome: we, the collective, will all pay more taxes, either through income tax increases, or elimination of child tax credits, mortgage deductions, and bear the brunt of the new taxes on the Affordable Health Care Act (Obama-care) including the $53 tax on every insurance policy in order to build a “pool” to cover those who have pre-existing conditions, and the tax on medical equipment (which includes everything you may need from a crutch to a pacemaker). The debt ceiling will no longer exist as there will continue to be a need to feed the collective trough, and those left with any taxable income will have a little bit less income and make due. Unlike those we sent to Washington, who will continue to live in la la land, and refusing to craft a reasonable budget and make some hard decisions – such as cutting duplicate programs. We’ve paid higher taxes before (before George W. Bush), and so it’s not the end of the world. Who doesn’t like eating more pasta? Or carpooling if possible? What is incompressible is that this is occurring at all.

It’s time to pay the piper, the American taxpayer saw this coming from a mile away (ok, Tea Party Members), and the idiots on the hill, are putting their heads in the sand. There will be, by the way, no cuts to government programs, only increases in government programs.

Will it be the “end” of the way the U.S. does business? Will we be “Greece”? – Hardly, what we will be are the people paying for the mistakes of those we hired. We have an opportunity coming up every 2 years to change the situation. If one thinks its one party alone, then one is as out of touch with reality as the entire lot in Washington – it’s both parties. Whatever can we do? Vote out incumbents; bring in a bunch of individuals who have no ties to Washington in any previous life, and hope for the best. One can hazard to guess if tomorrow, the Congress and the Senate, was composed of Doctors, Lawyers, Teachers, Handymen, Construction Workers, and name a career path other than professional politician, things would move forward as all of the aforementioned have to balance budgets, make cuts and care for those less fortunate, and manage to do it, day in and day out. – Therein lays the solution, the problem is finding anyone who is willing to take on the job for starters, and then getting those so used to pulling a lever for an R or a D to do the opposite.

For now and the foreseeable future we will be “paying Caesar”, no matter which party, no matter how ridiculous the debate becomes and no matter who blames who.

Additional Reading: Opportunity to step away from ‘fiscal cliff’ dissolves into one-upsmanship” (Las Vegas Sun

No comments:

Amazon Picks

Massachusetts Conservative Feminist - Degrees of Moderation and Sanity Headline Animator

FEEDJIT Live Traffic Map

Contact Me:

Your Name
Your Email Address