The more I look at the situation we face today, the more convinced I am that the wisest course for Democrats and the best course for America is to jump off the fiscal cliff. Although more and more people are seeing the wisdom of that move, most of the media is acting as though those people do not exist.
The Congress is set to begin debating this week whether to extend hundreds of billions of dollars in expiring tax cuts in what amounts to a round of shadow boxing in advance of the real battle after the November elections.
Both the Democratic-led Senate and Republican-led House of Representatives will take up the expiring tax rates in coming days, but the outcomes will be very different and will settle nothing.
Still the votes may provide some hints on the prospects for party cohesion – especially for Democrats – on the tax issue after the election.
"For Senate Democrats, the primary goal is to avoid the optics of late 2010 when they couldn’t really come together," said Helen Fessenden, an investor adviser at Eurasia Group. "They want to avoid the public message of division."
U.S. lawmakers from both parties fear the blame for pushing the country over the so-called fiscal cliff of expiring lower tax rates on December 31, and automatic spending cuts set to kick in days later unless Congress steps in. The Congressional Budget Office says failure to act could spur a recession in 2013.
The tax cuts, passed under Republican President George W. Bush, expire at the end of the year unless Congress and President Barack Obama agree to extend them in one form or another, as they did after a bitter struggle in December 2010.
Republicans want to extend the tax cuts for at least another year with an eye toward a broader reform in 2012. They are playing to small-government Tea Party advocates and voter worries about the economy and sluggish job growth.
Democrats want to extend the lower rates for the first $250,000 of an individual’s income and allow rates to rise for income earned above that threshold.
They are making a play for what polls show are a majority of Americans who believe the rich should pay more to reduce deficits… [emphasis added]
Inserted from <Reuters>
Note that, while the authors did an excellent job explaining the fiscal cliff, they did not even mention the lawmakers that favor digging in and refusing to cave-in to Republican demands. Reaching a settlement after the election will head off the recession the authors mentioned.
We’re faced with three basic facts. First, we cannot reduce the deficit without increasing revenue. Second, over the years, trickle down has gushed up so much over the year that the only ones who have any revenue are the super rich. Only they can afford to give back some of our money that Republican welfare for the rich has given them. Third, the only way Republicans will ever negotiate in good faith requires a figurative axe hanging over their political necks. Refusing to cave-in and letting the fiscal cliff work for us is the only strategy that fits those facts.
Lawrence O’Donnell discussed jumping off the cliff with Ed Bartlett, senior policy analyst in the Regan White House, and Asst. Secretary of the Treasury under GHW Bush.
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Bartlett is certainly no bleeding heart liberal, and even he points out that the Republican hypocrisy here is extreme. Republicans are saying that spending costs jobs, unless it’s what they want. Thast will make your veggies grow organically! Republicans are running scared. We should keep them on the run.
21 Responses to “Off the cliff”
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It seems so simple to me–need more money ? Obvious– Go to the bank– in this case those who well can afford to contribute fairly– the Middle and lower income source is played out—
Republicans are running scared. We should keep them on the run.—
So Jump baby Jump !!
Seems to me not spending- not raising taxes on the upper limits has and is costing jobs—-
But then I am only an older woman— who does vote btw , and cannot see myself ever voting for a Repug again
It see,s that wat, because it is.
Sounds smart.
I say let 'em ALL expire..the tax cuts, that is. Or the Repubs, either one.
But this nonsense HAS to stop….quit playing games with this country's future.
Judi, you're so right!
(I remover your URL, because it was a bad link.)
In the Lawrence O'Donnell clip, I thought Bartlett was good at pointing out a Republican fallacy. According to a study by the Aerospace Industries Association touted by Republicans, 2 million jobs will be lost by cuts to the defence sequester and a further 2 million from the non defence sequester. Republicans are saying that if spending is cut, then there will be job losses. This flies in the face of previous Republican assertions that spending cuts had to be made in order to create job growth. The Republicans have plainly painted themselves into a corner, apparently with no window to escape through. They want their cake and eat it too, but that can't be. This I think is humourous.
In another segment of 'Off the Cliff' with Lawrence, Senator Patty Murray, D (WA) is shown speaking to a group.
I really do think that the Democrats are in an excellent position to make changes for the good, and I hope they stay the course with Patty Murray's plan. The risk is, will the American voters agree with her in November? I hope so. This whole debate should also serve to further expose the obstructionism and the perfidy of the Republican/Teabaggers.
Former Reagan Economic Advisor Bruce Bartlett is that rare bird – a responsible Republican. You may enjoy two more quotes from Mr. Bartlett:
http://www.theage.com.au/world/fighting-the-right-conservatives-find-republican-party-line-hard-to-follow-20120713-221ch.html#ixzz20YJdwiFT
Mr. Bartlett's' witty thoughts after SCOTUS upheld ObamaCare posted on his Facebook page:
http://andrewsullivan.thedailybeast.com/2012/06/the-tyranny-of-obamacare.html
Thanks Nameless for the 2 url's. The Bartlett one is especially good. I decided it was too good not to share so posted it on Care2.
Extremely good comments from you both!
Let the tax breaks for the wealthy expire, jump baby jump…. Screw you Grover Norquist….!
If it comes down to letting all of the breaks expire, or none of them, then let them ALL expire.
Yes, people will suffer in the short term. But anyone who lived through the 1990s knows how well things even out when the Federal budget is in repair.
You've seem me say many times to take mine before leting the 1% keep ours.
Republicans are always trying to please someone, aren't they? Maybe this week it is Sheldon Adelson & the Koch bros. Sadly, it seems, they are never trying to please the people. The people have long been forgotten by that party.
Always trying to please billionaires.
I agree that no compromise should be made by the Demoocrats. Let all the tax cuts expire and cut our over-spending on our military.
Thanks Patty
I agree the time is NOW " JUMP OFF THE CLIFF " Congress and SAVE OUR COUNTRY ! I heard on MNBC "Lawrence O'Donnell stated that should Congress " Jump Off The Cliff " and force all the Tax Breaks to end., then the Obama tax Bill will come into play, and Republicans will have to vote for it ! ! – Because it " LOWERS TAXES " – ON ALL EXCEPT THOSE IN THE HIGHEST TAX BRACKET ! ISN'T THAT EXACTLY WHAT THE AMERICAN PEOPLE WANT ? ?
Welcome Mary Lou, although belated. 🙂
I fully agree.
Let's Jump off I do not think Obama will do any more deals
I hope not.
I hope the Democrats will have the courage to " jump off the cliff", but I doubt they will.
We'll see. I think they just might, if the Republicans do not cave-in.