The Pennsylvania Progressive
...all rights reserved...

(HOME)


[mobile]

Contributors
John Morgan
Blog Owner, Editor, Publisher

PA Eagle Eye
Contributing Writer
Walter Brasch
Contributing Writer
Jamoca
Contributing Writer
Great Auk
Site Administrator

About
Contact: PAprogressive(at)Gmail(dot)com

Search




Advanced Search


Progressive Allies
Common Sense 2
Act Blue
DaylInsights
Beaver County Blue
Democracy For America
Pennsylvania For Democracy
The Nation
Progressive Democrats of America
Truthout
OpEd News
Misled Into War: A Timeline
BuzzFlash
Lefty Blogs
The Advocate
Democracy For Berks
Kutztown Area Democratic Club
Pennsylvania Diversity Network
Upper Bucks For Democracy
People For the American Way
The Raw Story
Tredyffrin Township Democrats
Public Citizen
CREW
The New PA 16th
Progressives For Pennsylvania
Casino Free Philadelphia
Air America Radio
Progressive Majority
Democratic Talk Radio
AlterNet
Dems '08
Equality Forum
Human Rights Campaign
Equality Advocates
Green Party of PA
Americans Against Escalation In Iraq
Northern Chester County Dems
Eastern PA PFLAG

News and Resources
WGPA Radio
The Accountability Project
Politics PA
The Real Sam Rohrer
BBC News
PennLive News Flash
National Public Radio
Federal Election Commission
Fact Check.org
Open Secrets
Coalition For Voting Integrity
PA Commissions, Elections, Legislation
Project Vote Smart
Iraq On The Record
The Cook Political Report
Neighborhood Networks
Public Radio Capitol News
Money Line
Fair Trade
Pittsburgh Post-Gazette
The Philadelphia Inquirer
CNN
MSNBC
Harrisburg Patriot News

The Pennsylvania Progressive

Fiscal Chicken

by: John Morgan

Thu Dec 27, 2012 at 15:40:01 PM EST


by Walter Brasch

Talk show hosts and other bloviators have spent hours giving their versions of the fiscal cliff.

In fewer than 750 words, I'll explain the truth.

Taxes and the deficit are intertwined. If Congress can't come up with a plan to solve those problems, the U.S. will jump into the abyss of a deeper recession than existed under the latter years of the Bush-Cheney administration.

Let's first look at taxes.

The Bush tax cuts expire at the end of this year.
The idea of the cuts was to spur the economy and give what is loosely called the "jobs creators" a slight push to hire more people.

But, the millionaire "jobs creators" held onto their money. They continued to downsize and outsource jobs, making even more money-which they used to buy whatever trinkets that rich people spend money on.

If Congress can't agree on tax rates, beginning Jan. 1, 2013, every American will see a restoration of tax rates to a level that is about what they were before the Bush tax cuts. The lower- and middle-classes will be hit harder than the upper class.

President Obama, contrary to what the screaming harpies of the extreme Rightwing claim, doesn't want to raise taxes. He wants the tax cuts to continue for 98 percent of all Americans-the ones making less than $250,000 a year. He wants to restore-note that word, restore, not raise-the tax liability for the richest 2 percent of Americans. The rate to the rich would still be below the rates they paid during most of the latter half of the 20th century. Even billionaires like Bill Gates and Warren Buffet agree that the rich need to be paying more.

The Republicans, knowing where their financial base is, demand that the tax cuts be extended to everyone. Their compromise was to allow the cuts to apply to everyone making $1 million a year or less. That would be net income, not gross income. Millionaires could still make $3 million a year if they can scam $2 million in deductions. Their rates would still be lower than almost any time since the income tax was first created in 1913.

The President countered with a $400,000 limit. That would include about 99 percent of all Americans. House Speaker John Boehner, however, found that a segment of his Republican party don't want a compromise; they are determined to uphold some kind of a non-legal pledge to Grover Norquist that there would be no tax increases-ever-even if it is to restore, not raise, tax rates.

The second part of the problem is that of entitlements. The Republicans are willing to do some horse-trading. They won't continue to hold 99 percent of Americans hostage if there are cuts in "entitlements" and programs that would significantly reduce the deficit. These entitlements benefit mostly the 99 percent. The Republicans even say they'll consider closing some tax loopholes used extensively by the upper class. But, they won't tell us what those loopholes are, even though the President has several times asked for specifics. Apparently, the Republicans believe releasing such information is classified, much like battle plans in Afghanistan or the number of toilet paper rolls the Pentagon buys.

The President has already compromised several times, but every time he makes a concession, the Republicans want even more. He has proposed an orderly reduction of the deficit by $1.6 trillion. Not good enough, say the dogma-driven Republicans. They want even more. And they want it now. They are aware that if the tax cuts expire all at once, the deficit immediately decreases, something that makes them drool in ecstasy. However, almost every economist of every political persuasion says a severe decrease in the deficit would lead the U.S. into an even worse recession than the one created by the Bush-Cheney administration.

Behind a wall of political gesturing, the Republicans are doing nothing, while blocking those who can do something. John Boehner now acknowledges he is blocked by party dogma and can't control the Republican majority in the House who want the government to several cut entitlements while continuing all Bush tax cuts, even to millionaires who, not surprisingly, make up the majority of Congress. Their actions are driving America into fiscal cliff suicide.
The obstructionists in Congress need to realize this isn't a deserted two-lane highway, and Americans don't want the Republicans playing chicken with our nest eggs.

[Walter Brasch, a social issues columnist, has covered politics and government for four decades. His latest book is Before the First Snow: Stories from the Revolution.]

 

John Morgan :: Fiscal Chicken
Tags: , , , (All Tags)
Print Friendly View Send As Email

Fiscal Chicken | 1 comments
The real fiscal chicken... (0.00 / 0)
Your comment: "The President has already compromised several times, but every time he makes a concession, the Republicans want even more."
How gullible is one who fails to perceive what is clearly a systemic problem with this neophyte president.
Is it so difficult for you to understand that these very same concessions are the reason we have no resolution to the debt crisis?
In line with the above, are you are aware of the fact that your still working fellow union members are having great difficulties in seeking a just resolution of their negotiations with SSHE?
Would you feel comfortable with Barrack Obama heading up those same negotiations?
We have many hundreds of dedicated educators in the State System who focus on the day-to-day teaching and mentoring of their students.
These are skilled professionals whom embrace working class ideals and a solidarity fully equal to those of coalminers, auto workers, steelworkers and janitors.
These same men and women are wholly dedicated to the cultivation of their students.  
Then there are those cosseted and pampered academics whom instead dedicate the major part of their energies, time and efforts not to those students whom innocently look to them for enlightenment, but rather they are taken up with prolific book writing as well as shamelessly advertising themselves ad nauseam by way of both the print and electronic media.
Which side are you on?
Matt Thomas

 


Fiscal Chicken | 1 comments
Active Users
Currently 0 user(s) logged on.

Menu

Make a New Account

Username:

Password:



Forget your username or password?


Pennsylvania Blogs
ACLU PA
PA 2010
Drexel Dems
Kill Gerrymandering In PA
2 Political Junkies
A Big Fat Slob
A Smoke Filled Room
Above Average Jane
Beer Leaguer
A Lehigh Valley POV
Gort42
Carbon County Democrats For Change
PA Labor Movement
PA Dems
Declarations of Pride
Diondega 412
Erie Gay News
Erie Pressible
Fact-esque
Froth Slosh B'Gosh
Future Majority
Green Dog Dem
Jesse White
Keystone Politics
Left Of Centre
Lehigh Valley Ramblings
Pennsylvania Independent
Mark Rauterkus & Running Mates
MainLine Peace Action
Making Sense With Don L
Metroblogging Philadelphia
Montco DFA
NEPArtisan
Harrisburg Politics
Philly Future
Pittsburgh Lesbian Correspondents
Progress Pittsburgh
PSoTD
Suburban Guerrilla
Thomas C Waters
The Liberal Doomsayer
Young Philly Politics
The Lehigh Valley Political Blog
All Spin Zone
PA WaterCooler
Truth, Justice & Peace
Wilkes-Barre Online

State Blogs
The Albany Project
Article XI
AZNetroots
Bleeding Heartland
Blogging For Michigan
Blue Commonwealth
Blue Hampshire
Burnt Orange Report
Buckeye State Blog
Calitics
Prairie State Blue
Square State
My Left Nutmeg
Florida Politics
Forward Kansas
Free State Politics
Hillbilly Report
Blue Indiana
Indigo Journal
Left In Alabama
Left In The West
Loaded Orygun
Turn Maine Blue
Blue Mass Group
Michigan Liberal
Nebraska Netroots
Minnesota Progressive Project
New Dominion Project
New Nebraska
Blue Jersey
Blue Oklahoma
Show me Progress
Green Mountain Daily
West Virginia Blue
Blog Roll
AmericaBlog
Attytood
Bad Attitudes
Border Jumpers
Inlandz
Bloggernista
Booman Tribune
Bootstrapping Andrew Sullivan
Brainshrub
Caffection
Crooks and Liars
Culture Kitchen
Daily Kos
Deer Jane
Delaware Liberal
Down With Tyranny
Firedoglake
Group News Blog
Hullabaloo (Digby)
Feministe
GovernMentality
Kid Oakland
Marisacat
Media Matters
Politics of Mesothelioma
Mid Atlantic Labor Blog
My Left Wing
MyDD
Oliver Willis
Nourishing the Planet
Orcinus
Organized For Once
Open Records
Pandagon
Pam's House Blend
Politico's Ben Smith
Planned Parenthood Action Fund
Queah's Blog
Rubber Hose
Senate Guru
Swing State Project
Talking Points Memo
Talk Left
Terrorism News
The Brad Blog
The Gist
The Bilerico Project
The Huffington Post
The Jaundiced Eye
The Quaker Agitator
Think Progress
Iraq Today
Informed Consent
WIMN

Powered by: SoapBlox