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the “cliff” is more than just “fiscal”

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December 05, 2012 – Comments (5)

the term “fiscal cliff” was coined by Helicopter Ben to draw dramatic attention the impending pop-up of the federal budget deal agreed to in 2011 when the “Super Committee” in Congress failed to agree. In fact, it is much more than just the fiscal budget:

**expiration of the Bush tax cuts. So, technically, I guess you could weasel out by claiming you are not really imposing new tax increases

**expiration of the 2% payroll tax reduction: this one will take dollars out of the weekly paychecks of workers immediately

**oodles of new taxes to pay for Obamacare. Not only that, but businesses are cutting back on full time employees in favor of part-timers that will not trigger health insurance requirements

**across the board budget cuts. Now wait: is not this the most fair, least political way to reduce the size of government?

“Sequestration”?

I got suspicious of this term, thinking that this word has a rather different legal meaning than just a cut or reduction. I did some poking around, and did not discover a magic escape hatch where Congress just jump up and yell “just kidding...” I did not find one, but this does not mean that it does not exist.

I did discover, however, that all Congress has to do to kill it is to pass a really brief amendment to nullify the whole shebang.

Thus approaches the end, but I do not fear it.  

5 Comments – Post Your Own

#1) On December 06, 2012 at 12:07 AM, awallejr (85.48) wrote:

Well yes there are lots of things Congress can do to mitigate, but the one thing they can pass now so as to to assuage the concern of the masses is to to pass the stalled house bill (stalled by the republicans btw) that continues the Bush tax cuts for the under $250,000 and the payroll tax cut.

There's the rub.  The Republicans don't want to do this because they are using this as hostage to getting those rich bastards continual tax breaks (which probably includes many of those Republican Representatives like Boehner.) Conflict of interest?  Nah Conmgress doesn't care.

Sorry Republicans, you lost the "party of the people"  designation for the "party of the rich."

Dream all you want but 2014 will kick your butrts out of control of the House.

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#2) On December 06, 2012 at 2:50 PM, Mega (99.95) wrote:

"Dream all you want but 2014 will kick your butts out of control of the House."

Probably not happening. House Dems won the popular vote by 0.5% but Republicans won the districts by 7.6%. That's a huge structural advantage based on the current district map.

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#3) On December 06, 2012 at 7:31 PM, Imperial1964 (97.76) wrote:

If anyone runs the actual numbers, "going over the fiscal cliff" won't even balance the budget.  That gets us about half way there if I remember correctly, and about 2/3 of the way to a sustainable ongoing deficit.

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#4) On December 07, 2012 at 12:42 PM, edwjm (99.87) wrote:

At least that is a big step in the right direction

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#5) On December 07, 2012 at 7:27 PM, awallejr (85.48) wrote:

Probably not happening. House Dems won the popular vote by 0.5% but Republicans won the districts by 7.6%. That's a huge structural advantage based on the current district map.

Well if the House Republicans refuse to ever pass the pending bill extending the tax breaks for under $250,000 I will wager that the Country will hold them accountable come 2014.   And no re-districting will help.

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