The Fiscal Cliff: The Spartan Defense

As the date for the Bush Tax Cuts to cease looms ever closer, it appears that the Republicans might actually be trying to man up and mount a defense, reminiscent of the Spartans defending the pass through the mountains in the movie “300”.

Foxnews.com reports that

House Republican leaders said Wednesday they’ve done their job in negotiations to solve the looming fiscal crisis, while President Obama is returning to the campaign trail to sell tax hikes that studies show won’t have much, if any, effect on solving the problem.

“We have done our part by putting revenue on the table,” said House Majority Leader Eric Cantor.

Cantor and fellow House leaders have agreed to close tax loopholes to generate revenue to reduce the $1.1 trillion annual deficit. But they argue the president has yet to say publicly what cuts he will make to the federal budget — specifically to costly entitlement programs such as Medicare, Medicaid and Social Security — to reduce the deficit.

They also say the president’s plan to extend tax cuts only to middle-class Americans will not generate enough revenue to significantly reduce the deficit.

The leaders made their argument the same day Gene Sperling, director of the president’s National Economic Council, told House Democrats that failing to extend Bush-era tax cuts to the top 2 percent of income earners could trickle down to hit the middle class, sources tell Fox News.

On Wednesday afternoon, the president ramped up his public pitch amid a backdrop of hand-picked, middle-class voters at the White House.

“Right now, as we speak, Congress can pass a law that would prevent a tax hike on the first $250,000 of everybody’s income,” he said. “And that means that 98 percent of Americans and 97 percent of small businesses wouldn’t see their income taxes go up by a single dime.”

He also urged Americans to use social media to try to persuade their congressional representatives to take the deal – telling them to use Facebook and their Twitter accounts. Obama even announced a new White House hashtag My2K — a reference to the estimated $2,200 tax increase that a typical middle-class family of four would see if the Bush tax cuts expire.

Of course, when word got out that Obama and his minions came up with that goofy #Mt2K idea, Conservatives immediately started hijacking it. Your’s truly was no exception:

kingsjester ‏@kingsjester1

Our money – Washington’s “revenue” – #My2k

kingsjester ‏@kingsjester1

“From each according to his abilities, to each according to his needs.” – #My2k

kingsjester ‏@kingsjester1

We’re all going to be too poor to pay attention – #My2k

Have you ever noticed how these modern Democrats try desperately to mask Marxism with the cloak of nobleness?

For example:

We’ve got to raise taxes! It’s for the children!

Republicans want control of your uterus!

and, of course,

The Republicans want you all back in chains!

How…noble? No. Self-serving.

If the Dems were as noble as they claim to be, they would keep their promises.

Like, the promises they made in the Debt Ceiling Compromise last August:

House Speaker John Boehner had to rely on a blend of Republicans and Democrats to push the bill through his chamber, with some conservatives unhappy about key provisions in the compromise.

House Democrats don’t want to carry Republicans’ water, though. Rep. Gary Ackerman, D-N.Y., said earlier Monday that every Democrat who votes for the bill takes a Republican off the hook — he urged colleagues to wait until Republicans put at least 200 votes on the board “before we give them cover.”

Liberal Democrats are unhappy in part because the first phase of the plan relies solely on spending cuts — $900 billion worth of them.

The second phase of the plan relies on a special committee to come up with roughly $1.5 trillion in additional deficit reduction. Both sides are wary about what that process could produce, in terms of entitlement reform and tax reform.

And conservatives are particularly agitated about a provision that would enact sweeping defense cuts if the committee’s recommendations are not approved by the end of the year. Plus some are peeved that, while the package would call for a vote on a balanced-budget amendment, it would not require its approval in order for the debt ceiling to be increased.

About those Spending Cuts…they never happened.

This scenario, concerning the battle on the edge of the Fiscal Cliff, is, actually just a continuation from the recent presidential campaign.

On one side, you have Obama and the Democrats, playing the class warfare card for all it’s worth, blaming those eeevil rich people (I never got a job from a poor man.) and those wascally wepublicans (The Dems are huntin’ Entitlements. Heheheheheh.) for standing in the way of Baracky Claus delivering all the free stuff that his base really, really wants…err…needs.

On the other side is Speaker John Boehner and the Republicans, trying to man  up and find a Conservative spine among all that Moderation, in order to put on a good show for the home folks.

How long the Republicans will hold to their convictions remains to be seen.

This bunch, who gave us Mitt Romney, the candidate who thought that Obama was a good guy, who is just in over his head, seems to suffer from the same indecisiveness as Romney’s Campaign.

They can’t seem to figure out whether to stand and fight against Obama’s tax increases, go back into negotiations, or, just drop their guns and run.

(By the way…is anybody out there interested in two WW II French Army Rifles? Dropped once. Never shot.)

The question remains…are the Republicans going to be Spartans? Or, Vichy French?

Until He comes,

KJ

Washington’s “Revenue” = Our Money

20 years ago, members of Congress signed the following pledge from the Americans for Tax Reform:

I, _______________, pledge to the taxpayers of the _____ district of the state of__________, and to the American people that I will:

ONE, oppose any and all efforts to increase the marginal income tax rates for individuals and/or businesses; and

TWO, oppose any net reduction or elimination of deductions and credits, unless matched dollar for dollar by further reducing tax rates.

Evidently, Obama’s promises aren’t the only ones that come with expiration dates.

Foxnews.com reports

New York Rep. Peter King and Sen. Lindsey Graham said Sunday they would break the pledge and accept tax changes to generate more revenue to curb the trillion-dollar federal deficit.

Their statements followed a similar one Thursday by Georgia Republican Sen. Saxby Chambliss.

“I agree entirely with Saxby Chambliss,” King said on NBC’s “Meet the Press.” “A pledge you signed 20 years ago, 18 years ago, is for that Congress. … The world has changed, and the economic situation is different.”

The New York congressman said he was opposed to tax increases but that “everything should be on the table” when President Obama, House Speaker John Boehner and Senate Majority Leader Harry Reid try to broker a deal.

“I’m not going to prejudge it, and I’m just saying we should not be taking ironclad positions,” King added. “I have faith that John Boehner can put together a good package.”

Should Congress and the White House fail to reach an agreement, a $500 billion mix of federal cuts and unrelated tax increases would kick in January 2 — the result of lawmakers failing to reach a more measure approached to cutting the deficit and keeping the country from going over the so-called “fiscal cliff.”

The across-the-board cuts to the federal budget would equal more than $1 trillion over the next 10 years.

Graham has suggested earlier that he would be open to changes in taxes but repeated Sunday only if Democrats are willing to cut federal spending by scaling back entitlement programs like Medicare and Social Security.

“I will violate the pledge, long story short, for the good of the country, only if Democrats will do entitlement reform,” he said on ABC’s “This Week.”

He also said the only pledge that should be made when the country is trillions in debt is to “avoid becoming Greece.”

“Republicans should put revenue on the table,” he continued. “We don’t generate enough revenue.”

However, Graham said he agrees with pledge champion Grover Norquist that tax rates should not be increases and instead suggested generating revenue through capping tax deductions.

Indiana Democratic Sen. Dick Durbin, on the same show, acknowledged that his party needs to “bring entitlement reform into the conversation.”

When Politicians like Lindsey Graham use the word “revenue”, it positively chaps my hindquarters.

It’s not “revenue”, Sen. Graham! It is Americans’ hard-earned wages ,which you want to tax the stew out of, in order to continue to fund the out-of-control leviathan known as the United States Federal Government.

The  term “fiscal cliff” refers to

A combination of expiring tax cuts and across-the-board government spending cuts scheduled to become effective Dec. 31, 2012. The idea behind the fiscal cliff was that if the federal government allowed these two events to proceed as planned, they would have a detrimental effect on an already shaky economy, perhaps sending it back into an official recession as it cut household incomes, increased unemployment rates and undermined consumer and investor confidence. At the same time, it was predicted that going over the fiscal cliff would significantly reduce the federal budget deficit.

Grover Norquist, the head of Americans for Tax Reform, summarizes the situation thusly:

Obama’s present demand is that the top two marginal tax rates be increased to 39.6 percent plus the 3.8 percent Obamacare tax surcharge for a top rate of 43.4 percent. The death tax would also jump back to 55 percent, capital gains tax would jump from 15 percent to 23.8 percent, and the tax on dividends would increase from 15 percent to 39.6 percent.

Speaker John Boehner is calling for extending all of the Bush tax cuts for all income groups.

Boehner notes that there are 11 million businesses that pay taxes at the individual level. Obama, on the other hand, is demanding that more than half of small business income be taxed at 43.4 percent rather than today’s 35 percent. This would be a body blow to job creation.

If Obama follows through on his threat and refuses to extend the Bush tax cuts, then there would be an automatic $500 billion tax increase beginning January 1, 2013, that would total $5 trillion over the decade.

…Here’s the thing

Now Obama is trying to conflate these two issues: the automatic tax hike that takes place unless the present rates are not extended as they were two years ago and the automatic spending cuts. They are of course very different. The tax hikes would hurt the economy. The spending cuts would reduce the Obama debt machine and strengthen the economy.

So far, both House Speaker Boehner and Senate Republican Mitch McConnell have both said they would not support any increase in marginal tax rates. They have said they are open to more revenues from economic growth. One fear is that taxes could be raised by limiting tax deductions for home mortgages, health insurance, charitable giving and state and local taxes to raise a great deal of money from taxpayers without technically increasing marginal tax rates.

This would be a bad idea one, because those tax hikes would be instead of spending restraint and second, because reducing deductions now in order to spend more money makes tax reform much more difficult later.

Some had hoped that President Obama would focus on job creation and back off his high tax/stimulus spending agenda that has so damaged the economy. It does appear that four years of failure have taught him nothing.

Obama has not put on the table any specific entitlement reforms and is demanding a total of $1.6 trillion in tax hikes. He is all tax hikes and no spending restraint. Nothing has changed in four years.

Obama, and every politician who decides to jump on his socialist bandwagon and raise taxes during the horrible economic conditions the American Taxpaxers are facing, are playing fast and loose with Americans’ money.

In the business world, that is called poor investing at best, and a con game at worst.

I tell you what, Sen. Graham. Why don’t you and the rest of Hussein Obama’s 40 thieves fix your own fiscal house first, and tighten your own belts, before you force hard-working Americans to pay more taxes to keep you all in the lifestyle to which you have become accustomed.

It’s called being a “good steward” and a “public servant”.

Terms you folks up on Capital Hill seem to have forgotten in the past 20 years, since you signed that pledge.

Until He comes,

KJ