What Fiscal Cliff?
The “fiscal cliff” that is worried about is the impending overall tax increase for every American. But you’ll really see a fast downward spiral, and it’s already taken the dive. The jump started when Obama first took office. Obama wants tax increases for the rich, including increases coming from tax rates jumping up after 1/1/2013, when the Bush rates expire.
Per Walter Williams: Future Generations (George Washington University), a conservative estimate of this administration’s unfunded liabilities (FY 2011) is $87 trillion. That exceeds 500% of our GDP (2011) of $15 trillion.
The Real Debt
One needs to read “Why $16 Trillion Only Hints at the True US Debt” (WSJ/ 11/26/12). In that column, it’s clear even $8 trillion in annual tax collections, wouldn’t be enough to keep from going deeper in debt.
It’s projected in 2016 the total debt will be $22 trillion. If one checks Obama’s spending habits closely, the deficit is increasing (perilously), not decreasing. By viewing the U.S. National Debt Clock :Real Time, one can physically see our debt increasing every minute, to the unbelieving view of $1.8 billion/dy, or $650 billion/yr.
Taxing Rich Will Worsen Things
Why is it so many Americans buy Obama’s demagoguery our problems can be solved by taxing the rich?
Thomas Sowell(Senior Fellow/Hoover Institution/Stanford University) has described the content of Investor’s Business Daily, and the President’s Economic Report. The Report’s statistics (p. 411) obviously show Obama’s flaws in debt calculations. Both reveal tax revenues went up when Bush cut tax rates, with the deficit declining in subsequent years. Obama actually blamed these actions for increasing the deficit.
Past Tax Revenue History
One can check all the way back to the Coolidge administration. Tax revenues always went up with decreasing tax rates. Even though tax cuts are not a panacea, they’ve worked almost every time they’ve been tried.
Democrats Woodrow Wilson and John Kennedy, and Republicans Calvin Coolidge, Ronald Reagan and George W. Bush also had tax cuts in their budgets. As a result, they all increased tax revenues.
Bush tax cuts actually narrowed the budget gap, as can be seen in the White House Data Debunk Myth Bush Cuts Built Deficit – Investors.com. Obama continues to insist the Bush tax cuts caused the recession and record deficits, but not his own economists. Data in the above [Investors.com] link gives the truth.
No Debt Limit
David Harsanyi (Human Events) knows Obama’s biggest agenda item is tax hikes on the wealthy and small businesses. Now, he desperately wants unlimited authority increasing the debt limit. He believes a cap is a “bad strategy”. It’s known any “savings” documented by Obama already existed from reducing forces in Iraq and Afghanistan.
The Congressional Budget Office (CBO) defines debt as a share of GDP. They say it will soon exceed 100%, and by 2035 will exceed 200%.
US potential unfunded liabilities-all the entitlements promised by the government, without money to pay for them-are estimated to be $87-$100 trillion. That’s not including Obamacare unseen costs.
Obama is convinced of a ‘mandate’ by his fraud-assisted election win. He believes he now holds all the cards, without needing to compromise at all. He wants a larger government, and no cap on spending.
If the Republicans refuse to compromise, the alleged ‘cliff’ will appear 1/1/13 when tax rates will rise. If there’s no compromise, Obama’s economy will continue spiraling downward at an even faster pace. With a bipartisan compromise, Obama will still blame a bad economy (and it will be very bad) on the Republicans.
That’s why is better to refuse anything Obama wants. He made this economy. Everybody has to know he will own it. He’ll have to live with it himself.
It’ll be interesting watching Obama playing ‘chicken’ on a non-existent cliff.