This is Eric Boling’s “One More Thing” on today’s The Five. Priceless!
Tag Archives: fiscal cliff
The Federal Reserve plans to keep short-term interest rate near zero until unemployment drops below 6.5 percent and inflation reaches 2.5 percent. This means given the current equations used to calculate those numbers, Fed interest rates will remain at current lows until mid-2015 or beyond.
The Fed will also continue spending $85 billion a month on bond purchases to keep long-term borrowing costs low and to stimulate the U.S. economy. They will also spend $45 billion a month on long-term Treasury purchases and continue buying $40 billion a month in mortgage bonds.
Why are such moves deemed necessary by the Federal Reserve?
Why does the U.S. debt ceiling need to be raised every few years?
Why is America stressed about a “fiscal cliff?”
Because the United States of America spends entirely too much money.
To those who remember history, it is self-evident that politicians, elected or not, who subscribe to the “progressive” (read Marxist) philosophy have little to no interest in compromising with their political opposition. History informs that “progressives” in America are more inclined to attempt eliminating their Conservative political opposition than reaching any compromise. How else can it be explained why “progressives” continue to cling to their uncompromising position?
The so-called fiscal cliff negotiations going on in Washington DC is a clear example of their motives and tactics.
The “progressives” are intentionally holding to a position untenable to Conservatives in hopes of creating divides within the GOP and causing them to lose credibility by caving on their principle of not raising taxes.
The best case scenario for “progressives” is for the GOP to stick to their principles and refuse to raise taxes. Then “progressives” and their co-conspirators within the “mainstream media”, aka the “progressive” Party Pravda, can place the blame for the economic results of sequestration on Conservative Republicans while, solely for their own political aims, temporarily championing members of the GOP who appeared willing to “compromise.”
Trying to negotiate a “grand bargain” simply means Republicans are aiding and abetting “progressive” Democrats in their quest to commit the biggest swindle in American history.
“I think if we go halfway, or we split the difference with him, then both parties have their hands on it. When we go into recession, it’ll be confusing.
I have yet another thought on how we can fix this. Why don’t we let the Democrats pass whatever they want? If they are the party of higher taxes, all the Republicans vote present and let the Democrats raise taxes as high as they want to raise them, let Democrats in the Senate raise taxes, let the president sign it and then make them own the tax increase. And when the economy stalls, when the economy sputters, when people lose their jobs, they know which party to blame, the party of high taxes. Let’s don’t be the party of just almost as high taxes.
In the House, they have to because the Democrats don’t have the majority. In the Senate, I’m happy not to filibuster it, and I will announce tonight on your show that I will work with Harry Reid to let him pass his big old tax hike with a simple majority if that’s what Harry Reid wants, because then they will become the party of high taxes and they can own it.”
Conservatives can keep bashing Speaker of the House John Boehner and House leadership, perhaps Senate Minority Leader, Mitch McConnell. But that does absolutely nothing to advance the Conservative position. Republicans made their bed a year and a half ago by agreeing to sequestration.
Give “progressive” Democrats what they want and let them own it. When average everyday Americans who happen to be Democrats or Independents start feeling the economic pain, let “progressives” explain a failure that is covered with their fingerprints and nobody else’s.
Somewhat unsurprisingly given the intense polarization that exists today, the announcement of the drop in November’s unemployment rate has become a political issue, as both sides of political leadership claim it supports their position in the ongoing fiscal cliff negotiations.
The Bureau of Labor Statistics announced that during November, the unemployment rate fell to 7.7% from 7.9%. The labor force added 146,000 new jobs last month, but the number of unemployed individuals remained at 12 million.
The BLS stops counting individuals as unemployed after 27 consecutive weeks of joblessness. Essentially, this means the unemployment rate fell because the labor force shrunk.
Democratic Senate Majority Leader, Harry Reid, who has been vocal about the need to increase taxes on the wealthiest Americans, stated the number proves the economy is improving, but a tax hike on middle class families could reverse the progress.
“There is no doubt our economy is moving in the right direction. The only question is whether Republicans will jeopardize the progress made so far by forcing a $2,200 tax hike on middle class families,” said Reid in a statement released on Friday.
But Republican Speaker of the House John Boehner believes the economic recovery promised by Democrats is progressing too slowly.
“Any job creation is welcome news, but the jobless rate in this country is still unacceptable. Today marks the 34th consecutive month of unemployment above eight percent,” said Boehner last Friday.
January 1, the so-called fiscal cliff, marks the expiration of the Bush tax cuts. This will trigger a return to the higher income tax rate of the Clinton era. On the same day, automatic spending cuts will also go into affect.
Democrats, led by Reid and President Obama, want to extend the cuts for families making under $250,000, but let them expire for people making above that rate.
Republicans are seeking to extend the tax cuts for all Americans.
Conservative comedian Steven Crowder appeared on Fox and Friends this weekend to discuss his recent video. In this clip Crowder does a number of ‘man in the street’ interviews regarding the fiscal cliff, raising taxes and closing loopholes. Not surprisingly, Crowder found that many self prescribed Democrats had to rethink their position when they discovered personal policies were more in line with Republicans. In other words, especially when talking about financial issues, if people voted as they actually lived many more would vote conservative.
What? Can it be so?
Yes, many, many people do believe we need to control our spending, limit welfare, and give opportunities to capitalistic enterprises. Unfortunately, we allow the media and Democratic Party to fuel the fire with exaggerations and mis-truths (some might call them lies) to the point that many common sense citizens actually believe that Republicans have cooties. The problem Republicans have is the message is not getting out. But we can’t wait until the month before the 2014 elections to start sharing the mission and values of the Republican Party. And the time to change is now. So watch this interview and then share it with your Democrat friends. Maybe they’ll be surprised too.
You can watch the complete video at StevenCrowder.net.
It’s time conservatives think about pushing the GOP machine over the cliff they are helping Democrats hurl America over and replace them with Tea Party conservative leaders. The moderate RINOs are nothing more than Democrats in cheap Republican clothing.
Seriously people, is John Boehner a Republican, is he a conservative, or a fence-straddling Democrat who sticks his cigarette in the wind to see which way the wind blows the smoke so he can decide which deal will keep him in power?
When conservative House members refuse to vote in lockstep with Reps Boehner, Cantor and McCarthy, they are politically purged from Congressional meetings.
Reps Tim Huelskamp of Kansas and Michigan’s Justin Amash refused to vote with House Speaker John Boehner on key votes during the past two years. The punishment: losing their seats on the House Budget Committee chaired by Rep. Paul Ryan along with Reps. Walter Jones of North Carolina and David Schweikert of Arizona are losing their seats on the House Financial Services Committee.
I think it’s the worst form of petty, vindictive politics that a member is removed from a committee when he votes his conscience and he votes his district… [but these People go behind closed doors. They [the GOP Establishment] don’t talk to your constituents. They don’t care about your constituents. All they care about is raw political power.
As America is headed over a cliff, Speaker Boehner and his Republican Democrats (moderates) are pushing conservative party leadership under a bus. TEA party conservatives need to take over the GOP.
The Republican Party’s authentic conservative base is the tea party who want America restored, not the likes of John Boehner who seems only concerned about keeping his job.
Moderates must go! Their preference to compromise America’s economic stability by making deals with Obama that increase America’s debt. Republicans in the House of Representatives caved to the $2.4 trillion debt ceiling hike and now they are willing to raise taxes by $800 billion.
Next: The GOP refuses to hammer home tax hikes and government spending truths: Tax increases, disguised as getting even with the rich, will hike taxes on the Middle Class.
The actual tax increase plans being proposed by Obama do not start with people who have an income of a million dollars a year. They start with people with incomes of $250,000 and up. That is more than most people make, but it is far short of a million dollars, and miles away from a billion dollars. How many of the people who stand to get hit with Obama’s higher tax rate plan are in fact either millionaires or billionaires? According to the Internal Revenue Service, there are more than 2,700,000 people who earn $250,000 a year or more — and fewer than one-tenth of them earn a million dollars or more. So more than nine-tenths of the people who would be hit with the higher taxes supposedly aimed at “millionaires and billionaires” are neither.
Hey, what’s another $800 billion? We’ll just borrow the money from China so taxpayers can experience that joyous funding of Arab Spring and enemy nations who hate our guts and want us all dead.
The GOP machine has become a bunch of liberal Democrats whose only care is reelection. If that’s false, they would have pulled out all the stops and fought Democrats excessive spending over the last four years, not to mention 20 years of over-the-top Clinton housing loans to the poor.
Is the GOP serious about restoration? They certainly didn’t nominate a conservative presidential candidate.
Furthermore, GOP leadership has sat back and allowed Obama to demonize Republicans as greedy, rich fat cats, while Obama and Democrats falsely argue that raising taxes increases revenue. Unfortunately, Obama’s Trotsky ploy is winning the argument with his downtrodden 99% invention just as well as it won the election.
After Reagan left office, the establishment crumbled. The GOP hurled conservatism over a cliff in favor of becoming Democrats in cheap GOP suits. In fact, GOP leadership has become so liberally Democrat, it looks like the Democrat Party’s behind.
Tea partiers must take over GOP leadership. Conservatives must take up the restorative mantle and change America back to America. W need to push the GOP machine over a cliff, because authentic Conservatives will be be bullied by Democrats.
Conservatives must elect authentic fiscal Conservatives to the House in the 2014 mid-term elections. If we don’t, Nancy Pelosi will ride back in on her broom and her Flying Monkeys will have full control.
John Boehner, even your compromises can’t afford the bucket of water to melt that power.
America that needs leadership fighting unconstitutional administrative government, but today’s GOP lacks the Democrat’s dog-fighting spirit that knows how to go for the jugular and rip votes out of the necks of Republican candidates. Republicans leaders have become dogs who rolls over and submit to robbers invading the House, and Republicans allow those thieves to steal everything without a fight.
Worse: Both parties are beginning to look like one of loyalists with conservative voters as the the new generation of colonists trying to save liberty from tyranny.
The truth is we conservative need to become the new generation of colonists fighting to save the Republic.
“Mr. Nice Guy” politicians refuse to stand up to Barack Obama and shove his Marxist “spread the wealth,” “fair share” policies back in his face, exposing his destructive plans to the nation. But the GOP hasn’t acted manly since Reagan and William F. Buckley. Republican leaders allow Obama and his administration to double-deal the race card demagoguery against Republicans, wealthy Americans, property and business owners, and basically anyone who has something Obama’s “poor” do not have and are told they are entitled to have by equal fair sharing.
Where is the leadership willing to stand up and rip open the lie behind those polices? Tea party conservatives.
But we can’t forget these leaders are being thrown under the bus because they stand up against Obama and fight GOP corruption: Governor Sarah Palin jailed Alaskan GOP leaders for corruption, Michele Bachmann exposed Hillary Clinton top aid Huma Abedin for connections to the Muslim Brotherhood and was trounced by the GOP for protecting national security. Let’s not forget tea party candidate Allen West, whom the GOP never bothered to stand up for as Democrats extinguished West’s district.
Do we need more proof the Tea Party needs to take over before America becomes a nation run by one monarchical party assuming divine rights until the Constitution is obsolete?
Moderates are handing America over to Democrat Trotsyites hell-bent on removing traditional conservative founding values, morals, independence, liberty, constitutional rights, while hurling America over the economic fiscal cliff we cannot climb up and out of.
The GOP has fantastic Tea Party leaders capable of moving this country in the right direction, but Speaker Boehner and his cronies trample them. They’ve turned on conservatives while enabling Democrat leftists to push America into socialist-control.
Moderateness must stop if America is to endure; that can only happen if conservatives shove RINOs over the cliff and elect authentic fiscal conservatives to the House in 2014.
If we don’t fight liberal Republicans and leftists, Obama will enact the “Dreams of My Father” and we can kiss our American lives goodbye.
The Obama Administration has been adamant about raising tax revenue by raising marginal rates rather than by closing loopholes and capping deductions, even though the latter solution would raise as much revenue as the former. Why all the insistence on rates?
Loopholes in the tax code have historically been used to manage behavior, as well as to reward and punish those who are in or out of favor with the powers that be. If President Obama gets his way, he will still be able to use loopholes to reward his wealthy contributors, while also using the tax code to punish those who oppose his policies.
A flatter, fairer tax code with few deductions and loopholes would mean that those donors who favored the President with their millions, would have to pay like everyone else.
It is not about the revenue, it IS about the power.
CNN and Pew Research Center polls show a majority of the public will blame the GOP if the country goes over the cliff, even if Speaker Boehner fetches coffee for Obama during negotiations and compliments Michelle on her triceps.
To avoid this the GOP must start thinking strategically. That and take some very useful advice from two unlikely sources: Grover Norquist and Barack Obama.
Norquist urges Republicans to televise negotiations. This is a good idea that will allow the public to see just how intransigent Democrats are. While Obama warns House Republicans to get out of the way, which is exactly what they should do.
While the TV cameras are humming, Boehner should recognize the President built his campaign around raising taxes and voters supported that agenda. Boehner should explain that although Republicans disagree and believe Obama’s policies will plunge the nation back into a recession, if not depression, the people have spoken and Republicans will not obstruct him in any way.
Then — as Dante wrote about denizens of one level of the Inferno — we let Obama be himself with a vengeance. Republicans simply vote ‘present’ and, following the Obamacare precedent, the President’s socialistic, dangerous policy passes without a single Republican vote.
We lose tactically in the short run, but we win strategically in the long run. Negotiating minor cuts at the margin now not only won’t be a victory, it will allow Obama — and his Hallelujah Chorus in the media — to blame the failure of his fiscal policy on Republicans. That is impossible if Obama gets his way.
What’s more, bickering over petty spending cuts, discredits major cuts as a viable debt reduction strategy in the future. When these rounding–error cuts fail to make a difference, Democrats and the media will claim we tried cutting and it didn’t work.
Keep in mind Republican House leadership has a bad track record when it comes to negotiating cuts anyway. The last time we had a debt confrontation in 2011, Boehner came up with a total of $352 million in cuts. To put that in perspective, the amount represents one–tenth of one percent of the budget.
Whoop–tee–freakin’–doo. It would have made more sense to take the “savings” and buy lottery tickets. Last week’s Powerball jackpot was almost twice as large as the “cuts.”
And the wealthy job creators Obama’s tax increase will harm? I repeat, any Obama compromise means Republicans own the failure, because Obama didn’t get all he knew the nation really needed. And in the unlikely event he succeeds — and remember the media will set the bar remarkably low — Obama gets all the credit.
Some will object that House Republicans have just as strong a mandate as Obama, since they were elected, too. But that’s horse hockey. GOP congressmen were re–elected in gerrymandered districts designed to be impossible for Democrats to win. Obama won the entire nation and he’s right about his mandate, misguided as it is.
If recognizing the results of a democratic election is the proper policy in Egypt, it’s the proper policy here, even if the Socialism Brotherhood was the winner.
Holding out for miniscule spending cuts is simply negotiating the length of the rope Obama will use to hang Congressional Republicans.
There are only two instances where the GOP should fight today. One is opposing giving up Congressional debt ceiling authority in the future. The other is Boehner’s promise that if the Democrat Senate changes filibuster rules, all subsequent Senate bills will be DOA in the House.
Giving the President unilateral debt ceiling authority is like giving the Times Square homeless man a pair of boots and a credit card. No Congressional debt authority, along with rewriting filibuster rules, would cause long–term damage to the country and set a dangerous precedent.
Otherwise, let Obama own the agenda and own the responsibility. It will be impossible to blame Republicans for a result they did not in any way impede.
Our goal should be winning in 2014. It’s the asymmetrical strategy I advocated recently; and it is the kind of strategic thinking Republicans need to start utilizing.
Two years of short term pain will result in House and Senate gains that will allow Republicans to start reversing the course of Obamaism. Besides, I want to watch Democrats try to run in 2014 on a platform of “Osama’s Dead & So Is the Economy.”
While Washington D.C. political leaders battle on Capitol Hill and in the White House over the approaching ominous fiscal cliff, it appears House Speaker John Boehner has shoved conservative House Tea Party members over another type of cliff. In the military it is called “relieved of duty”, and that is exactly what Boehner has done in the 2012 post-election “House” cleaning.
The same conservative Tea Party House member that brought the GOP the largest surge of new members since the 1930’s, has resulted in several key leaders being quietly shown the committee exit door by Boehner. What is truly mystifying to many conservatives across the nation is why now?
With the House republicans retaining the majority and therefore holding onto the speaker’s gavel for Boehner, why not reinforce conservative leadership at a time when an overzealous president is making every attempt to neuter the GOP brand. Obama wants to force Boehner and House Republican eat their “No-tax hike” pledge in the fiscal cliff negotiations!
Deep within the bowels of the White House political office, there has to be plenty back slapping being shared, as they along with Obama watch the House Republicans take their unwanted political cheese bait. While the nation did reelect the president with bait and switch political tactics and epic character assassination methods, the House Republicans were still elected with a majority as well.
This conservative majority of Americans who came to the polls in November, could not imagine that Boehner would weaken his conservative hand, by shedding noted House Tea Party leaders like, Kansas’ Rep. Tim Huelskamp ( R-Kansas), who gained a well-respected reputation for standing up against Planned Parenthood, banning gay marriage and other conservative causes while a state senator. As it turned out, Boehner demonstrated his gratitude by booted him off the Budget and Agriculture Committees.
This may be backroom and insider Capitol Hill politics, but was not changing the status quo of congressional GOP moderation the reason that the over whelming conservative swell of new congressmen and women were to be about after 2010 elections?
Apparently not the case according to congressman, Huelskamp, who stressed to his fellow conservative house caucus members, Tuesday, December 4th, “It confirms, in my mind, Americans’ deepest suspicions about Washington. It’s petty, it’s vindictive, and if you have any conservative principles, you will be punished for it.”
Yes, the punishment was swift and it cut deep into the heart of Tea Party conservative congressional members. Michigan’s own, Tea Party favorite Rep. Justin Amash (R-Mich.), was dispossessed of his Budget committee seat. The purge continued with Arizona Rep. David Schweikert, being relieved of his seat on the powerful on Financial Services Committee. There were many others.
According to Slate, congressman Amash asserted this was this was a plain and simple congressional backroom “purge!”
Now it appears to many Washington pundits, that the president has the upper hand, due to rumblings in the nation’s capitol that some GOP house and senate republicans may cave on the no-tax increase pledge to prevent a fiscal cliff disaster.
The true reality of the fiscal cliff is that conservatives in the house must continue to hold their leadership to the pledge to not give into White House thuggish tactics. Otherwise, the country’s fiscal cliff compromise will unleash an unrestrained 20 plus trillion dollar debt no future generation can bear or afford.
If Boehner goes down this slippery slope with a socialist-minded president determined to gut the GOP for a generation, there will be a reckoning. By 2014, the nation will have a double-dip recession, six years without a budget, and a weakened military. More importantly, in 2014 it will be conservatives fighting back both against a rudderless presidency and moderate House leaders that sold out America’s fiscal future.
Naked weakness displayed by leadership which sacrifices conservative principles is never admired by liberals; it is simply used as a hammer on them. Boehner, wake up and smell the coffee, the aroma that you may smell next is the scent of an open conservative revolt. It may make the 2010 Tea Party surge look like a spring breeze.
The 2014 Tea Party election Tsunami will be steadily gaining strength in the heartland, and this time the Speakership may be stripped from Boehner, due to being “Unfit for Duty.”
The short answer, in my opinion, is a short, “No.”
If you are watching the news, negotiations appear to be between Boehner and the conservative wing of the Republican Party; not between the House and the President. And for good reason. When congress participated in the last round of budget negotiations it was anticipated that the broad cuts included in within the budget would never happen; that the dynamics of congress would change. Boehner knew that without enough strength the House could only stall the wishes of the far left president. So he accepted and convinced House Republicans to accept seemingly absurd cuts to the DoD and across the board tax increases,etc., kicking the can down the road in hopes of a stronger senate and/or new president.
These cuts, even then, seemed outrageous and fiscal conservatives across the country complained bitterly that the speaker caved. Did he? Maybe. Was there any other option? Probably not with this redistribution president.
So, here we are today. President Obama reelected, the Senate still firmly in the hands of the Democrats and the House without any bargaining chips. Can Republicans win? Will Obama agree to any compromise? It doesn’t appear so.
As Rick Santorum explained in an interview with Greta Van Susteren, “the reason I think he’s saying no, and I think he will say no to just about anything the Republicans put forward, is because the fallback position is better for him than any deal that the Republicans are going to put forward.
And the fallback position is a tax increase on everybody and back to where — pre-bush tax cuts, and he can then have his big increases in taxes, and then at the same time blame Republicans for taxes going up on lower-income people. That’s a win for him.”
If the president sees the bottom line as a win for him, then why negotiate? So it makes sense that the only negotiations we are seeing is within the Republican House as they decide how much of the bitter pill they’ll have to swallow. At this point it appears no matter what the Republicans agree to they will be blamed for all that happens. If taxes go up on everyone Republicans will be blamed. If small businesses and higher income people are hit with taxes and limit their growth/spending Republicans will be blamed.
We can cry about Boehner’s actions again but why? He controls only 1/3 of the parties needed to enact legislation. Conservatives lost the election and socialistic theology won. We can complain. Or we can start working to change the dynamics. There’s an election in two years.
Unless you’ve been living under a rock for the past several years, you’ve undoubtedly heard that the world is going to end on December 21, 2012. If you haven’t started making preparations for the inevitable end, there’s no shortage of places to find suggestions for the last hurrah!
Of course NASA took some time out of their busy schedule of improving American relations with Muslims to claim that the end is not near. Obviously, they missed the definitive statements by the CDC about the impending zombie apocalypse. Maybe that just proves that agencies within the government really aren’t talking to each other, and conspiring against the public. But maybe that’s intentional, to get us off the track when it comes to their plans.
Even the Republicans in Congress are showing signs that they know the world is going to end. After all, why else would they abandon the voters’ mandate to reduce governmental spending and keep the Bush taxes intact with a political game of chicken with the Democrats? I’m telling you folks! As REM put it, “it’s the end of the world as we know it!”
It’s no coincidence that hundreds of major companies across the U.S. announced plans to lay off thousands of workers the day after the elections. While the president continues to promote a ‘tax the rich’ approach many don’t realize the difference between taxing income and taxing investment dividends.
This week Maria Bartiromo joined the “Meet the Press” round table for discussion on the fiscal cliff debate currently ongoing and zeroed in on just this issue.
After speaking on the necessity of Social Security and Medicare reform Bartiromo stated: On taxes, you really can’t put all of the taxes into one category. Dividend taxes for one is probably the biggest threat to the markets and the economy right now when you’re just looking at taxes. And dividend taxes are not a rich tax, nor are capital gains. You’re talking about pension funds, 401(k) plans, invest in companies that pay dividends. If you’re expecting a dividend tax to go from 15 percent to 44 percent, that completely removes the opportunity or the incentive to buy dividend paying companies. And that’s going to hurt not just the rich. That’s going to hurt everybody if, in fact we were to see that. That’s very dangerous, and it is going to create a massive selloff.
Investing in businesses comes with inherent risk. The riskier the investment the greater the potential rewards. But with that is the caveat, if the potential rewards are offset by increased taxes more people will look at other places to put their money. If fewer people (including investment/retirement plans, pension funds, etc.) invest in businesses because of the increased taxes on dividends the companies will not be able to grow and expand.
A ‘tax the rich’ mantra is not nearly as simplistic as the president makes it sound.
Speaker of the House, John Boehner, responded strongly to President Obama’s continued campaign effort to ‘tax the rich’ as a means to end the financial crisis quickly. Tax increases on the wealthiest two percent of Americans will damage the economy and is not the solution, said Boehner, reaching out through social media via the Internet this weekend. Additionally, the Speaker outlined several reasons House Republicans believe the Democrats current proposals will hurt hundreds of thousands of small businesses across the United States.
“This is not a game,” said Speaker Boehner. “Jobs are on the line. The American economy is on the line.”
You can read all of the Speaker’s points at his website: Speaker.gov
When: Thursday, November 29th, 10pm Eastern/7pm Pacific
What: Join Social Media Director of ConservativeDailyNews.com, Michelle Ray (@GaltsGirl) as she discusses the issues that impact America.
Tonight: Come listen to a lovely lullaby about the US economy. Sure to include fiscal cliffs, debt ceilings, and pretty bubbles. We’ll also talk about the “war on men” and if Going Galt is possible and why you might consider it. Bring your own bacon. There are no freebies, here!
To those familiar with “progressive” modus operandi, it is not surprising that the White House and their “progressive” political allies envision Medicare and other “entitlement” savings happening ten to twenty years from now.
This is what “progressives” call a “balanced approach.”
The same “balanced approach” “progressives” used when they promised Ronald Reagan three dollars in future spending cuts for every dollar of tax increases. The same “balanced approach” “progressives” used when they hood-winked George H. W. Bush into violating his “Read my lips, no new taxes” pledge with a similar two to one offer.
Reagan, Bush 41 and the American taxpayer have yet to see those promised spending cuts.
In the current “fiscal cliff” negotiations, Republicans who are willing to accept “revenue” increases as a part of a deal with “progressive” Democrats in exchange for promised spending cuts that will happen sometime in the future are stupid, in denial or both. How many times do Republicans need to make this same mistake before they learn?
“Duh…as a kid I burned my finger every time I stuck it into the fire, but this time that won’t happen…duh…yup…uh huh…duh…ooooh…aaaah…look…something shiny…duh.”
By whatever means, no matter how much “new revenue” Republicans agree to provide, it will never be enough for “progressives”. No matter how completely Republican squishes cave to “progressive” demands for more “revenue”, it will work against them in both the short and long term.
The economy will tank and Republican will be blamed by “progressives”, while being seen as unprincipled jellyfish willing to break promises made to their constituents in order to “deal” with those who have no interest in compromise.
The “progressive” motive is not to make a deal. It is not to enact legislation that will stimulate private sector economic growth. History instructs that lowering tax rates stimulates the private sector and increases economic growth while resulting in additional revenue to the IRS. To “progressives” this is irrelevant.
They are far more concerned with what they call “fairness.” To “progressives”, fairness means confiscating money through taxes from productive people who create wealth and redistributing it to the unproductive.
History shows that tax increases stifle economic growth, which leads to reduced revenue collection. Budgetary imbalances grow worse and deficits continue to explode at an increasingly alarming rate. By following this path, it is all but guaranteed that the American government will raise the debt ceiling again and experience another credit downgrade. U.S. national debt will not go down and GDP growth will become virtually non-existent.
Eventually the federal government will need to find “other revenue” to fund its big spending operation.
The retirement savings, IRAs and 401Ks of every American are in “progressive’s” sights. Americans believe their 401ks and IRAs are private property, safe from government seizure.
These retirement savings are already heavily controlled by government regulation. Given the track record of “progressives” it is no stretch to realize that trillions of dollars in private savings are threatened by “progressives” who see them as a way to finance the national debt their big government socialist programs have created.
When Social Security began it was a compulsory savings program administered by the federal government. When someone retired, they would get back what they had paid in plus interest. It only took until 1939 for a “progressive” Democratic Congress to begin using a pay-as-you-go financing method, meaning money currently being paid into the Social Security System is financing current beneficiaries. At first it was worked. In 1950 sixteen people were paying into the system for each person receiving benefits. In the not so distant future there will be two people making payments for each check.
What happened to all the money millions of Americans have had stolen over the course of their lives from their paycheck by government mandate? What will happen if the government seizes private savings?
If Republicans ever wish to be taken seriously, they must stand on principle. For the future of the American Republic, backing down is not an option.