The Fiscal Cliff -- Is it time?

I am sure that most all of you have heard, by now, of the so-called fiscal cliff that the USA is facing Jan. 1, 2013. It is a combination of expiration of temporary tax cuts, new taxes on various things going into effect, and spending cuts mandated by the failure of a Congressional committee to find an alternative in a deal made by Congress to raise the Government Debt ceiling.

Perhaps we should just take our medicine and let the fiscal cliff take effect instead of trying to find some compromise to avoid it. Think about it. The Democrats want nothing but tax rate increases. While the Republicans might accept some revenue enhancements through elimination of various deductions, etc., they want the bulk of the 'savings' to come through spending cuts, namely to entitlements.

Both the Democrats and the Republicans have something to love in the 'cliff', and something to hate. The Democrats get cuts in defense spending and higher tax rates at the cost of cuts to entitlements. The Republicans get cuts to entitlements at the cost of higher tax rates and cuts to defense spending. The best part is that it is already a done deal. Both sides need to agree to just let it hit and to not try to undo it.

Yes, going off over the cliff would likely push us into recession rather quickly, but it is likely we would go into recession anyway at some point in 2013. The bad effects of the tax increases (remember, even President Obama once said you shouldn't raise taxes during economic hard times) pale in comparison to the harm that the huge federal deficits are doing to the economy.

The bad part is that the fiscal cliff is only about 10% of what we need. ~ US$100 billion per year down, ~US$900 billion per year to go...

The best way out of the deficit hole is to grow our way out through private sector economic growth. The main engine of economic growth is small business. After all, small business accounts for about 60% of the private sector jobs. Someone needs to sit down and educate President Obama on this. His much touted figure of $250,000.00 / year for phase in of tax hikes is somewhat too low. If that figure of $250k stands, it will eviscerate small business.

I can see the need for some revenue enhancements, preferably coupled with reform of the tax code. Yes, we spend more than we need to on defense. But, no matter how you slice it, we must make some meaningful cuts to social programs/entitlements.

In the past, I have suggested across the board spending cuts of x%. This would avoid a lot of debates and arguing about various sacred cow programs, and likely be easier to get passed. Then let each social program decide whether to reduce benefit size, tighten eligibility, or some combination of both. If we exempt some programs from cuts that will require even more massive cuts in others, maybe even eliminating them altogether. And remember, the programs you would wish to be cut deeply or eliminated to save your sacred cow program will be someone else's sacred cow.

No, the way I see it is that while an across the board spending cut by a fixed percentage combined with some amount of revenue enhancement in order to eliminate the deficit (and hopefully have a surplus to pay off the non-US Government held portion of the national debt over time) would hurt almost everyone in the short term, over the long term we would ALL be better off.

If we continue on doing what we are doing now and not eliminate the deficit and pay down the national debt, the thought of what kind of nation/world my three little children (7 months through 4 1/2 years) will have to live in when they are grown up just burns my backside.
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AMD Athlon II X3-450

As far as the Bush tax cuts, they very much favored the wealthiest. Time to give up on any compromise and let them expire.

After that maybe we can talk about some real tax reform.

You didn't pay your taxes, way back when, and yet you still come looking for handouts when the going gets tough.

Barack Obama can live without Churchill's bust, but not UK cash

Yes, the UK. Britain accounted for $46.7bn of the $226bn the US attracted in foreign direct investment last year. It has been the single biggest source of foreign investment for seven out of the past 10 years, according to the Bureau of Economic Analysis.

They'll only get it if they deserve it. Just please ask them to stop sending their cockeyed ideas over the pond. We DON'T want a Mayor of London, we DON'T want Police Commissioners, what other bright ideas have they got? Oh gawd, just don't ask .....

Double the sales tax on any purchase made on Thanksgiving Day.


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Excellent idea!

Better yet, double it on black Friday!

Just please ask them to stop sending their cockeyed ideas over the pond.

Just please ask them to stop sending their cockeyed ideas over the pond.

I have your purchase order right here where you clearly are asking for ideas. BTW your invoice is overdue, please remit payment ASAP.

In keeping with current international finances please accept this IOU...and it's
mortgaged back too by Mannie Fae or is that Mr-eddie Fac?

Just please ask them to stop sending their cockeyed ideas over the pond.

I have your purchase order right here where you clearly are asking for ideas. BTW your invoice is overdue, please remit payment ASAP.

In keeping with current international finances please accept this IOU...and it's
mortgaged back too by Mannie Fae or is that Mr-eddie Fac?

Our word is our 'Bond', just as long as it hasn't got the word Government written
before it?

last years interest on the debt was almost 1/2 trillion dollars this year will be higher if nothing fundamentally changes in about a decade the interest will be more than the entire budget then what do you cut?
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yea well they are lying to you over half and maybe as much as 2 thirds of the budget congress does not vote on the funds they are already appropriated because congress vues them as third rail votes and want to keep their seats.so they are vary limited on what they can cut and it won't be enough. and while taxing the rich sounds good and probably should be done the middle class pays the bulk of the tax's. so if they substantially raise tax's on the middle class they have not shown the ability to refrain from sending the new money and paying the bills, that is why alot of people are scared.
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