Saturday, November 1, 2014

Subscribe to Clarion AdvisoryRSS FeedSubscribe to Clarion AdvisoryComments

Latest News

The fiscal cliff and the progressives’ class warfare “compromise”

November 18, 2012 by
Filed under: Uncategorized 
 canstock0179531 The fiscal cliff and the progressives class warfare compromise
 
By Bob Jentges (Editor Emeritus, Clarion Advisory) 11-19-12
 
As the the main stream media fixates on the so-called sex scandal, attempting to distract from the real issue of who knew what and when about Benghazi, the White House has employed its usual tactic of telling everyone that they didn’t know anything until days later…. after it was over.  All of this has taken to distracting us yet again from what most Americans should be concerned about right now….the “Fiscal Cliff.” 
 
The Republicans have offered policies to increase tax revenues without increasing the tax rates on anyone, including those with incomes over $250,000.  But President Obama refuses to negotiate a compromise without a tax rate increase on those with incomes over $250,000—mostly small business owners.  Apparently, the President and his Democrat colleagues believe people think that an increase in tax rates on small businesses will only effect those small business owners. 
 
If a compromise agreement is not reached, taxes will increase about $475 billion in 2013.  But only about $100 billion of that increase will be related to an increase in the so-called Bush tax rates.  The remainder will come from the expiration of the payroll tax cuts—which will effect everyone that has a job and earns a paycheck—and the expiration of the Alternative Minimum “tax patch”, which will adversely effect many middle class families. 
 
Some class warfare proponents e.g. Paul Krugman, are recommending the President and like thinking progressive Democrats should not compromise because if the country goes over the “Fiscal Cliff” the Republicans will be blamed.  They may be correct, initially, but when rational thinking people experience the disaster that will follow i.e. discouraging hiring to broaden the tax base, and that the increased cost to small businesses will be passed down to consumers, I expect all but the hyper-partisan will understand politics should not take precedence over what is best for the people.  
 
If absolutely necessary, Republican’s should be willing to accept some short-term criticism and do what is best for the long term economic stability of the country. 

Comments

Tell me what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!