Posted on 11/08/2012 6:15:21 PM PST by tobyhill
The Congressional Budget Office offered a sobering assessment of the economic implications of plunging off the fiscal cliff Thursday, just as lawmakers prepare for a fight over taxes and spending.
If Congress and the Obama administration allow scheduled tax increases and spending cuts to occur, the economy will shrink by 0.5 percent in 2013. The unemployment rate would soar to 9.1 percent — up from 7.9 percent today.
Senate Finance Committee Chairman Max Baucus (D-Mont.) asked for the report and said the findings are another reminder of the need to find an alternative to the tax increases and spending cuts that make up the fiscal cliff.
“The consequences of inaction will deliver a dramatic, short-term blow to the economy,” Baucus said in a statement. “We need to build a bridge over this fiscal cliff. We need to work together — Republicans and Democrats — on a solution that provides some certainty to American families and businesses, while also bringing down our deficit and debt.”
The report largely echoes earlier CBO projections about the fiscal cliff’s impact.
An aide for House Ways and Means Committee Chairman Dave Camp (R-Mich.) said the report “confirms that raising taxes on all taxpayers will result in fewer help wanted signs hanging in the windows of businesses across the country.”
(Excerpt) Read more at politico.com ...
I agree, let it happen
WRONG. The tax payers have no one to represent them. When was the last time a candidate vowed to end or drastically cut back welfare to NEEDS only? Instead, they add to the goodies every time. Even the Republicans.
Why vote if no one will save you? Taxes will still go up. They always do. Regulation will be added. It always is. Freedoms will be lost. They always are. It doesn't matter to the hard working average Joe who wins. He knows he's going to get screwed anyway.
There's no one to represent the hard working American citizen anymore. We're not lost. Our government is.
“on a solution that provides some certainty to American families and businesses, while also bringing down our deficit and debt.”
Democrats...lol. They’re all just skanky, fat, lying pigs.
Millions of tax payers are being used as slaves to support the democrat base. All the welfare base does everyday is lay around and breed.
The tax payers have no one to speak for them, so they don't vote. Why bother? They'll still have to go to work everyday to support the thousands of new welfare kids being born that day.
NO TAX HIKES. In fact, demand a huge cut for everyone. The working class would be celebrating like never before. FINALLY! Someone who's there for us! Where do we vote????
I agree. Let it go over the cliff and be done with it.
I have reached a point where I don’t give a Fudge what they do. Either way America is screwed.We have idiots running the Government and a Muslim in the White House-—again.
“Senate Finance Committee Chairman Max Baucus (D-Mont.) asked for the report and said the findings are another reminder of the need to find an alternative to the tax increases and spending cuts that make up the fiscal cliff.”
I wonder what the alternative will be??? Maybe tax increases combined with no actual spending cuts but promises to do better in the future? How did I know?
“Play the producers against the non producers.”
We lost that battle three days ago. The non-producers had more votes.
Boner will have no effect on the imminent economic implosion no matter what he does. The only way to stop the fiscal cliff is to cut social program spending, reducing regulation, promoting domestic energy and reducing taxes. NONE OF THESE THINGS WILL OCCUR. The economy will tank whether there is a deal or not.
Boner is a useful idiot for zero and he is weakening his position everyday by alienating the conservative base. But just maybe, Boner’s stupidity will result in a conservative challenger to his speakership.
Regardless of what “deal” they hammer out it will be grossly unsatisfactory. Our budgetary problems will remain. No amount of taxation will bring us close to solvency, as no spending restraints will be implemented. The country’s fiscal demise will not come on a date of our choosing. Simply put, we will wake up one day and flames will be all around us. So you better sleep with your fire extinguisher.
“But the MSM has gone all out today to try and pin the responsibility 100% on Boehner.”
And it is only going to get worse. You are not going to believe how the lamestream media is going to crucify the GOP on not “going along with 0zer0” after his big win. It will be a rehash of GOP=Party of NO, Greedy Rich GOP, Failed Policy of Tax Cuts gave us deficits, etc. I have no faith what so ever that Boehner and McConnel won’t cave under the media onslaught, especially if the rates rise on the poor and middle class earners. The economy is most likely going to go into recession early next year, but raising taxes across the board by letting all the Bush tax cuts expire will guarantee it. This will just add to the heartless, greedy GOP smears, and the GOP will be blamed for the double dip recession, just like Bush was blamed in 2008. Bank on it.
So, the GOP will cave. If they do, I hope they at least try to salvage something. Here is what I would do. I would give 0zer0 his tax increases on those making more than $1 million. A real “Millionaire” tax, not a Millionaire tax on $200,000 which is what 0zer0 wants. I would also stipulate that every penny of projected CBO tax increase receipts go to cutting spending ACROSS THE BOARD IMMEDIATELY, no tax increases now for “future” spending cuts. That way Defense won’t be the only thing cut. This should make it about 75% Non-Defense and will hit a lot of Democrat Sacred Cows.
Lastly, I would not agree to raise the debt ceiling one penny until long term tax and entitlement reform is done. If you cut spending and raise taxes (0zer0’s balanced approach), then you should not need to increase the debt ceiling.
This gives 0zer0 some of what he wants, but it won’t do anything to turn the economy around because the Dems have already destroyed it. The GOP avoids the obstructionist, and favor the rich vs middle class label, and the Dems get saddled with the double dip recession that is inevitably coming. Then the GOP can say, we tried it you way Mr. Prez... the balanced approach, and it failed. The Dems will then completely own the recession that is coming next January.
Here's what Republicans should say (repeated here) :
“ Dems won and they are for raising taxes.
The Bush tax cuts expire in December and President Obama has made it a point many times that he thinks that these Bush tax cuts are bad policy and he wants them to expire. He said they destroyed the economy. He ran on that and won.
So there is nothing we can do. The people have spoken. Our hands are tied.
But we still think its bad policy to raise taxes. ”
Then secretly ask O how badly he needs the House to pass something.
Lastly DON"T SAY STUPID STUFF in public like challenging O or in any way acting crazy. This past congress's GOP members have a great talent for giving Obama a big LOADED gun pointed at their own heads.
On camera : Act concerned, Act worried, Plead with Obama to think of the country first.
JEEZE! Are these Rs clueless??
Time for them to start.
Let them get a dose of paying for people that don't want to work.
Let it go over the cliff.
All hell is going to break loose when the parasites go to their tax payer paid mail boxes and there's no welfare card waiting for them on the first. When the money runs out, they're NOT going to be happy.
We can't keep flushing money down the democrat toilet and expect it to produce anything other than sewage. The freebies have to stop. We simply cannot afford to support the freeloaders anymore. The democrat politicians did this to our country, so they'd better come up with a plan to fix it.
The time has come that the Court Houses in America, that give Holy Matrimony Marriage Licenses to couples, has LOST their ‘right’, and their ‘priviledge’ to extend legal, authentic, bonafide Marriage Licenses when they started giving licenses to the people of the same sex.
TO FIX THIS: Christians should boycott EN MASSE the Court House and just see how many taxes are collected in a year, and when the budget planners realize they’ve lost revenue, they’ll amend the Court House to give Civil Unions to Same Sex, and Holy Matrimony to Male/Female relationships.
Funny when George W. Bush was asked what the greatest threat to America was he responed that it was the destruction of the American family. Churches need to open a website where couples can apply On LIne for a Marriage Certificate that has been endorsed by Evangelical Churches, and bypass the Courthouse.
Yep. FORCE the democrats to cut spending and taxes. This is happening on Obomas watch. This is HIS fault. Bush is looooong gone.
I say let it go off the cliff. As the CBO stated, it would be a short term blow to the economy and would force us into a recession (one that we never left if honest). The rats don’t care the least about the tax cuts expiring or even the military cuts. What they are worried about are the social program cuts, extended unemployment insurance payments stopped, cuts to food stamps, etc. Yes, all the freebees that define their voting base. Otherwise, they will raise taxes and not reduce any spending.
The US GDP is $15 trillion. The federal government is borrowing (or creating out of thin air) $1.5 trillion per year. So it’s pumping 10% of GDP into the economy to get a measly 1% GDP growth per year. That doesn’t sound like a growing economy to me.
The Lame Stream Media and Rats will try every way to pin it on the GOP but in reality all the GOP is doing is giving the Rats what they want, letting the Bush Tax Cuts expire.
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