Thanks for the details. So, does this mean the GOP has leverage against the $1.6 trillion because we would actually really and truly for the first time ever see cuts in spending if we go over the fiscal cliff? If we do go over the fiscal cliff, we need to make sure Obama gets the blame. The fiscal cliff was his idea, after all.
Democrats are afraid to let the Bush tax cuts expire for the middle class (saturated with government incomes). So far, they’re saying that they’ll only allow the cuts to expire for richer folks and issuing figures (like about $40 billion per year during the first year for individuals not including corporations). That’s not good, but all of the most high profile “1%” individuals are way to the left on most issues and have expressed desires to pay more taxes.
The best way to go might just be to let it ride and refuse to budge on the spending cuts. That might be the only way to see those spending cuts happen.
Allow Congress to play, wheel and deal on those spending cuts, and we’ll see the current situation get much worse with increasing inflation in important market areas (oil, for one). We would also be unlikely to see any significant decreases in regulatory activities against production.
With the big spending, government continues to be big, busy, counterproductive and supported by more voters (government incomes). With less spending, producers have more room (freedom) to produce, and fewer constituents lean toward Democrats. Many folks with government incomes know which party is more experienced at keeping the debt coming and only feint (pretend and talk) at voting Republican.
If government were made smaller, more voters would be truly private sector and leaning to the right (constituents for production). All only my opinion, of course.