JUUUUUUMP!Well, it's time to pay the Piper and reset taxes back to circa 2001. You can't have tax cuts, and have two wars without someone paying the bill. Thanks George W Bush.
Can I return that crummy 150 dollar check you gave me back in 2002 and call it even?
It's definitely not an invention. It's sensationalistically named, but Bush instituted a series of tax cuts and raised government spending in 2001 and they were ment to be a temporary stopgap measure to kind of "ride out" the recession. The problem is that we aren't fully recovered from that recession yet and if something isn't instituted, next year, everyone will be paying higher taxes across the board, by quite a lot. It will also lower federal spending. Rather than try to explain the role of government spending in Keynesian economics, I'll just leave this link here. http://en.wikipedia.org/wiki/Keynesian_economicsCan we be sure this "cliff" isn't just the invention of one side or the other in order to bully the other into caving to it's demands? Or the invention of those who rely on FUD to make the highest profits?
I think the most simplistic (and personally relatable) explanation would be to imagine that you had some bills, but your payday wasn't going to be until next week, so you bought stuff on your credit card, not realizing that your statement was going to be due the day after payday and that the finance charge would put you over your limit. So now that payday is right around the corner, you have to decide whether you want to keep your entire paycheck and suffer the over limit fees, or whether you pay your statement to prevent the fees but then have less money to work with until next payday.It's definitely not an invention.
Why are you blaming Bush? He signed the first one before the wars were a twinkle in Osama's eye. Congress created and passed them, and it was a bipartisan effort. The senate was 50/50, and the republicans only held 9 more seats in the house than the democrats.You can't have tax cuts, and have two wars without someone paying the bill. Thanks George W Bush.
I'm open to alternative methods of getting people to understand the impact and importance of other people's decisions.I wish people would stop comparing government budgets to household budgets. Every time I see it I feel myself getting dumber by proxy.
Except, you know, it doesn't. It creates a false idea on how government budgets work and their impact on the economy as a whole. It's a view that has brought us to the stupidity we see in the House and Congress, where neither party is willing to do what is best for the country in a misguided attempt to 'balance the budget' while ignoring what is best for the country in an effort to cut every program and not raise any revenue, a move which would cripple the economy in the same way the fiscal cliff would.I'm open to alternative methods of getting people to understand the impact and importance of other people's decisions.
--Patrick
...which is why I solicit an alternative. I know that when I try to discuss finances with people, I can see that once I try to talk about anything outside their personal finances, they just stop paying attention. It's my experience that your average person doesn't seem to realize that their financial universe is just a raft in a big, big ocean, and they pay so much attention to their little bubble that they can't see how the motion of that ocean pushes their raft about in whorls too big for them to directly see. In order to explain the Ocean, I could try and build something really, really complicated, but it seems easier to just talk about something they're more familiar with, like their bathtub.Except, you know, it doesn't.
I do firmly place the blame for our current predicament on all presidents for the last 20 or so years, regardless of party affiliation. They've all allowed the banks to whittle away at the restrictions set up by FDR in the New Deal. It's entirely the reason we had the housing market crash due to all the junk loans that were allowed to go through and out of control loan policies that would have previously been not allowed. Regan, Clinton, Bush Sr, Bush Jr, all these presidents are responsible for allowing this to happen.Why are you blaming Bush? He signed the first one before the wars were a twinkle in Osama's eye. Congress created and passed them, and it was a bipartisan effort. The senate was 50/50, and the republicans only held 9 more seats in the house than the democrats.
If anything, blame Obama who came in on a recovery act, then extended them in 2010 - again, passed by congress and signed by Obama.
If you're going to say that a president should have acted differently, then you should be blaming Obama, who saw both wars and didn't let them expire as they would have if congress and Obama simply not acted.
Quite frankly, though, it appears that they are simply flying by the seat of their pants. There's no US Federal Budget. If there were, it most certainly wouldn't be balanced. Right now they seem to be making the best decisions they can in the face of absolutely no planning, or even economic direction for the future.
This has been going on for so long that we're past considering their actions negligence, and well into gross negligence.
I know what you mean. If the government ran their budget like some people run their household, we'd be several decades past the fiscal cliff and well and truly at the bottom of the fiscal Laurentians.I wish people would stop comparing government budgets to household budgets. Every time I see it I feel myself getting dumber by proxy.
Except the alternative doesn't help. It's so oversimplified it might as well be "Spend bad, tax bad!"...which is why I solicit an alternative. I know that when I try to discuss finances with people, I can see that once I try to talk about anything outside their personal finances, they just stop paying attention. It's my experience that your average person doesn't seem to realize that their financial universe is just a raft in a big, big ocean, and they pay so much attention to their little bubble that they can't see how the motion of that ocean pushes their raft about in whorls too big for them to directly see. In order to explain the Ocean, I could try and build something really, really complicated, but it seems easier to just talk about something they're more familiar with, like their bathtub.
--Patrick
I wish people would stop comparing government budgets to household budgets. Every time I see it I feel myself getting dumber by proxy.
I do have a friend that refers to taking his insulin as 'partying' so..Looking over the last fourty years, I call bullshit. Republicans are fiscally conservative until they hold the purse strings.
And what you call "partying" is grossly insulting to those who rely on that spending just to survive.
And that's just it, both parties are complacent in what has happened. Democrats need to be willing to cut spending while Republicans need to be willing to raise taxes. All of this should be done in small increments so as to prevent an economic free fall from the shock.What 3 things eat up the majority of the federal budget? Medicare, Social Security, and defense spending. What three things do Republicans defend fanatically, to the detriment of all other things in this country? Medicare, Social Security, and defense spending. But sure, it's all those evil Democrats and their "partying".
Stop trying to make this a partisan problem.
Isn't the Republican position on this light on tax rises and heavier on spending cuts/freezes, though? I believe the fiscal cliff is what was under discussion here.Looking over the last fourty years, I call bullshit. Republicans are fiscally conservative until they hold the purse strings.
And what you call "partying" is grossly insulting to those who rely on that spending just to survive.
Defence yes, though it is my understanding that the Republicans are generally viewed to be against entitlement programs, and have on several occasions been accused of 'attacking' Medicare and Social Security, Romney's campaign rhetoric to the contrary. I could of course be wrong, seeing as US domestic politics is of limited interest to me, but my quick google search does seem to support this.What 3 things eat up the majority of the federal budget? Medicare, Social Security, and defense spending. What three things do Republicans defend fanatically, to the detriment of all other things in this country? Medicare, Social Security, and defense spending. But sure, it's all those evil Democrats and their "partying".
Stop trying to make this a partisan problem.
Agreed, a balanced approach would seem like the best way forward. Now we'll just have to see if sufficient political will exists to bring that compromise about.And that's just it, both parties are complacent in what has happened. Democrats need to be willing to cut spending while Republicans need to be willing to raise taxes. All of this should be done in small increments so as to prevent an economic free fall from the shock.
Which, at the rate we are going will be sometime this week.Oh, yeah, gun debates. That'll start up again the next time we have a mass shooting.
I wouldn't be surprised. Putting Cantor up front is treating a cut with a chainsaw, which is pretty much how the more extreme elements in the GOP want to operate.I think Boehner would have taken the deal if the rest of the House wasn't nuts. He knows now he's not getting jack squat.
Don't be surprised if he loses the speakership over this. Cantor has been gunning for it for a while and unlike on the Dem side (between Pelosi and Hoyer, who notoriously don't get along) he's less likely to put aside his ambition in favor of making gains.
They moved from one completely unacceptable position to another completely unacceptable position. Obama said, "It's my way or the highway" knowing that there's no way they could agree to it, then made some insincere "attempts to negotiate" knowing that it was still unacceptable, and is trying to frame the debate in terms of the republicans not meeting at the negotiation table.Don't laugh, Stein, they cut out a lot of the top earners from the increases in their proposal, which is a hell of a lot more than the GOP did.
the response by Boehner's office wasThe White House made a new offer to House Speaker John Boehner (R-Ohio) on Monday to avoid the so-called fiscal cliff. The proposal matches the amount of spending cuts with revenue-raisers, calls for two stimulus measures and seeks an avoidance of a debt limit fight for the next two years.
The details of the offer were sent to The Huffington Post on condition of the source's anonymity.
The White House has moved off of its initial and second revenue demands of $1.6 trillion and $1.4 trillion respectively. As of now, the president would be fine raising $1.2 trillion in revenue. He also is no longer insisting that taxes increase on families with income above $250,000. Instead, he is calling for a permanent extension of the Bush tax cuts for incomes of less than $400,000.
To meet the $1.2 trillion revenue goals, the White House proposal calls for limiting the tax benefit of itemized deductions to 28 percent for taxpayers. It would return the estate tax to 2009 parameters, which would mean that estates worth more than $3.5 million would be taxed at a 45 percent rate.
The compromise on revenue may be difficult for some in the president's own party to swallow, though few would have imagined the White House scoring such a victory just one year ago. The spending cuts in the new proposal could be a harder sale.
In his latest offer to Boehner, the president proposes $800 billion in savings, including $290 billion in interest savings, $100 billion in defense cuts, and $130 billion in savings that would come from an adjustment to the inflation index for Social Security benefits. The administration insisted that there would be "protections for most-vulnerable populations" perhaps by indexing the changes so that they don't affect those with low-income.
The president has refused to give in on another Republican demand: that he gradually raise the eligibility age for Medicare from 65 to 67. There is, however, $400 billion in health care savings included in his offer.
Additional components of the proposal include language that would call for the fast track pursuit of corporate and individual tax reform as well as "spending reform." The White House proposal calls for a permanent extension of certain tax extenders (which ones weren't made entirely clear) and the alternative minimum tax. The payroll tax cut passed two years ago would, under this proposal, be allowed to lapse without an apparent replacement -– a major blow for progressive economists, who argue that the economy is too fragile to take such a hit.
The president is, however, pursuing some provisions that would make his base pleased. His plan calls for an extension of unemployment benefits -- set to expire at the end of this year -– and money for infrastructure spending. How much money is unclear, though the president's first offer asked for $50 billion. Finally, he is demanding that the nation's debt limit be increased for two years. He will continue to allow Congress the right to periodically vote not to raise the ceiling, but he would grant himself veto power over those votes.
That may be too much for Boehner to swallow. In his last offer, the speaker signaled comfort with a yearlong extension of the debt ceiling, but nothing more.
An administration official said that this was not the president's "final offer," but one that the White House viewed as a legitimate halfway point between the two sides. The official noted that the president already agreed to a trillion dollars in spending cuts as part of the first debt-ceiling standoff. When adding those figures to this plan, one gets to $3.4 trillion in deficit reduction. When considering war savings, that number goes up to well over $4 trillion over a 10-year period.
Boehner's office did not immediately return a request for comment
Seems like Boehner has no one to blame but himself and his party. Sometimes it's better to eat at McDonalds than to starve.Any movement away from the unrealistic offers the President has made previously is a step in the right direction, but a proposal that includes $1.3 trillion in revenue for only $930 billion in spending cuts cannot be considered balanced. We hope to continue discussions with the President so we can reach an agreement that is truly balanced and begins to solve our spending problem.