Skip to comments.Latest Fiscal Abyss Band-aid: Increase Taxes on $400k and Above, Cut $1.22T in Spending
Posted on 12/17/2012 6:57:54 PM PST by whitedog57
The latest band-aid on the fiscal abyss is: 1) Raise $1.2 trillion in taxes, 2) increase tax rates on household making $400,000 and above and 3) cuts $1.22 trillion in government spending. Over ten years, of course.
I say band-aid because it raises only $120 billion per year (12% of current deficit) while cutting l$122 billion in spending per year (also about 12% of the deficit). That is a measly 24% of the deficit each year over ten years.
Once again, they simply cant reduce the trillion dollar deficits through income taxes. It must be done through spending cuts. And simply offsetting spending cuts with income tax increases leaves us stuck running in place.
If this is the last proposal to avoid the fiscal cliff, we should all start singing Jackson Brownes Running on empty.
(Excerpt) Read more at confoundedinterest.wordpress.com ...
Tax increases? Immediate. Spending cuts? Sometime when hell freezes over.
= Boehner offers to let Ubama and the rats bankrupt yet another generation of Americans (this time our great-grandchildren) so that the Republicans can have the honor of being blamed for both raising taxes AND pushing granny off a cliff ("spending cuts"). That's some great work, Boehner.
"NOW, you're negotiating!"
Pay attention to what is supposed to happen in the next two years.
And raise the debt ceiling by $1 trillion per year. Sweet!
Yup. Not only are the spending cuts puny and the tax increases large, but I would guess that most of the spending cuts are back loaded and most of the tax increases are front loaded.
Do ya think?
Boner is NOT your friend.
If you raise taxes to collect 12% of the deficit (which probably end up being less) and if you cut spending by 12% of the deficit (which will probably end up being less), you still end up with deficits of over $800 billion every years. Over ten years, that’s $8 trillion more on the national debt. So by 2022, you have a debt of $23 trillion. That’s $230 billion for every 1% of interest (who knows what rates will be by then?) 2% interest on the debt would be half a trillion dollars. 4% would be a $trillion in interest alone. If the economy grows at an average of 2.25% every year, it would be about $19 trillion. Interest ($1 trillion) would consume over 5% of GDP. A lot of ifs. Just saying.
Resubmit the last Clinton / Gingrich Budget and go home to celebrate Festivus.
The United States is the ONLY country that taxes American citizens even if they have never lived in the United States at any time. Once born American, you owe taxes as an economic slave even when you receive nothing and have never lived in the USA. This law passed last December that authorizes the confiscation of any firms assets if they do not report what an American citizen does overseas has been devastating. Americans have been thrown out of banks everywhere. In Switzerland, you have to fill out papers to open and account swearing you are not an American citizen even if you are Swiss. Americans are being thrown out of public funds and just about everything anywhere right down to safety deposit boxes. The balance of trade will continue to collapse as foreign goods can be sold to Americans but Americans cannot open businesses overseas unless you are part of the big multinational corporations. This alone has sent the velocity of money spiraling downward. However, what is going on now is just off the wall.
The US government is now hunting down people who may have had one parent as an American yet they have lived outside the USA all their lives. The IRS has been hunting lineage of Canadians who had one American parent and are sending them letters informing them that by US law they should have been paying taxes their whole life to America in addition to Canada. This is sending countless Canadians running for lawyers all because the USA is broke.
How Americans are being treated by their own country is not as a free individual, but as economic property to pay revenue to the government regardless of where they live. NO OTHER NATION DOES THIS BUT THE USA. We are in such serious trouble with this Sovereign Debt Crisis that all liberty is being lost. Virtually every other major nation does not tax worldwide income if earned outside the country under the simple theory you pay taxes to use state services. If you are not there, you do not pay. American are owned by the government no different than the days of slavery. If your parents were slaves, you were the moment you were born. We perhaps ended private ownership of people, but we did not end state ownership of people. You must work and pay taxes and it has nothing to do with paying your fair share since there is nothing owed to a citizen by the state.
The desperate need for revenue to pay the bond holders has destroyed everything the constitution was intended to secure.
Anyone who can’t see that this is all just the same scam just deserves to have the word “STUPID” tattooed on their forehead.
The increase in tax revenue won’t happen because those people will find a way to avoid it. Including not investing their money. Which means fewer jobs and production.
The so called cuts in spending won’t happen on the whole because congress will just introduce new spending with new bills. Or as things are now. The executive branch does not even need congress in order to spend money.
On top of that even if all of the taxes and cuts went into effect and were not circumvented then it still would not matter. Because it is such a small fraction of the deficit spending that it simply won’t make a difference.
The only ones that should be stupid enough to believe this is anything other than a scam are the liberals.
What seems to have caused you to excerpt your own blog?
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