I hope you all got what you wanted for Christmas. I, personally, would have liked my sanity back…but, that ain’t happenin’ anytime soon.
The nation’s economy remains in the toilet, while the largest tax hike in American History is only 5 days away.
But, hey…up in DC, the fiddle business is doing great…while Rome burns.
Though Republicans and Democrats have spent the better part of a year describing a plunge off the cliff as a looming catastrophe, the nation’s capital showed no outward signs of worry, let alone impending calamity.
The White House has set up shop in Hawaii, where President Barack Obama is vacationing.
The Capitol was deserted and the Treasury Department – which would have to do a lot of last-minute number-crunching with or without a deal – was closed.
So were all other federal government offices, with Obama having followed a tradition of declaring the Monday before a Tuesday Christmas a holiday for government employees, notwithstanding the approaching fiscal cliff.
Expectations for some 11th-hour rescue focused largely on Senate Minority Leader Mitch McConnell, a Republican, in part because he has performed the role of legislative wizard in previous stalemates.
But McConnell, who is up for re-election in 2014, was shunning the role this year, his spokesman saying that it was now up to the Democrats in the Senate to make the next move.
“We don’t yet know what Senator Reid will bring to the floor. He is not negotiating with us and the president is out of town,” said McConnell’s spokesman, referring to Senate Majority Leader Harry Reid, a Democrat. “So I just don’t know what they’re going to do over there,” he said.
Two-day-old tweets on leadership websites told the story insofar as it was visible to the public.
House Speaker John Boehner’s referred everyone to McConnell. McConnell’s tweet passed the responsibility along to Obama, saying it was a “moment that calls for presidential leadership.”
eid’s tweet said: “There will be very serious consequences for millions of families if Congress fails to act” on the cliff.
The next session of the Senate is set for Thursday, but the issues presented by across-the-board tax hikes and indiscriminate reductions in government spending, were not on the calendar.
The House has nothing on its schedule for the week, but members have been told they could be called back at 48 hours notice, making a Thursday return a theoretical possibility.
So, just how big is Obama’s proposed Tax Increase?
NationalReview.com reports that
When we look at just nominal dollars, the president’s plan would, unsurprisingly, be much bigger than any tax increase ever, at $189 billion in the fourth year after implementation, topping the Affordable Care Act, which Tempalski calculates will raise $76.8 billion in revenue in its fourth year of implementation. (The CBO doesn’t find that level of revenue until 2020.) The largest increase before this was the 1993 budget act, which raised $66 billion in the most expensive year Tempalski measured, its fourth.
But more meaningfully, the president’s proposal is also the biggest tax increase since 1940 when adjusted for inflation. If you convert the revenue estimates from 2017 into 1992 dollars, the year that the original Treasury paper uses, the president’s plan raises $108 billion. No plan that Tempalski considered raised a higher amount, and it is possibly the highest amount ever. The second-biggest tax increase overall since 1940, after Obama’s, is the Revenue Act of 1942, which raised $73 billion in 1992 dollars. The second-biggest increase since 1968 was the 1993 tax hike, which in its fourth year raised $62 billion.
A final measure of the size of President Obama’s proposed tax increase is the increase as a percentage of total federal receipts. The president’s budget would raise that total by 5.1 percent in 2017 relative to the revenue baseline the document provides. That’s more than all but two increases since 1968: again, the 1982 act, which raised tax revenue by 7.2 percent in its fourth year (and 5.7 percent over its first four years), and the 1968 bill, which raised tax revenue by 6 percent over its first two years. These numbers all pale in comparison with some increases from the 1940s and 50s, six of which increased federal receipts by more than 9 percent. (The Revenue Act of 1942 raised receipts by 71 percent. Remember when we used to do big things, America?)
True, the nominal size of President Obama’s tax increase, like that of the taxes contained in the health-care law, dwarfs anything the U.S. government has ever raised from a tax proposal, though this comparison is almost meaningless. But his ten-year revenue plan is big enough to rank up there on the Mount Rushmore of revenue: It is the third-biggest tax increase as a percentage of GDP since 1968 and, in dollars adjusted for inflation, the biggest since 1940.
Now, doesn’t that just give you the warm fuzzies?
Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it. – Ronald Reagan
If these idiots, who are supposed to be working for US, not THEMSELVES overtax those who actually provide jobs for Americans, how is that supposed to “get our nation’s economy up and running again”?
Seems to me, all Obama’s plan will do is tax our nation’s economy into another Depression.
…And, maybe that’s what he wants.