Sen. Corker optimistic ‘there is a deal’ to get beyond ‘fiscal cliff’ (or foothills)

Confounded Interest ^ | 11/11/2012 | Anthony B. Sanders

[whitedog57]

According to The Hill, Senator Bob Corker (R-TN) is optimistic that there is a deal to get beyond the fiscal cliff.

Really?

The fiscal cliff is simply the foothills of a much larger mountain (of debt) range, much like the Andes of South America. So, what Senator Corker is talking about is getting past the foothills right in front of us.

President Obama’s preferred habitat of tax are households with adjusted gross income of $250,000 and above. He defines this group as “the rich” and wants them to pay their “fair share.”

Households with adjusted gross income of $250,000 or more accounted for 1.92% of the taxes filed in 2010, yet paid 45.65% of all income taxes. And 47.82% of tax filers pay for only 1.66% of total taxes paid.

Now, here is the bad news for President Obama and Senator Corker. If the US government seized 100% of the adjusted gross income from those households making $250,000 and over ($431 billion), it wouldn't even pay down half the current budget deficit of over $1 trillion, let alone pay down any of the over $16 trillion in government debt.

Thus, any agreement to avoid the “fiscal foothills” is not nearly enough to deal with perpetual trillion dollar deficits and Federal debt that is spiraling out of control. The US already has 35% more debt per person than Greece, another country experiencing a fiscal horror show.

So, the REAL fiscal cliff still is ahead of us, with no viable solution other than generating much faster economic growth. But the debt and massive regulatory burdens are putting a drag on the economy.

[whitedog57]

Households with adjusted gross income of $250,000 or more accounted for 1.92% of the taxes filed in 2010, yet paid 45.65% of all income taxes. And 47.82% of tax filers pay for only 1.66% of total taxes paid.

[lowbridge]

[Jonty30]

If it’s primarily increased taxes to try and turn it around, they have only postponed the inevitable.

[tennmountainman]

Increased taxes now. Spending cuts that will never happer.
We need to get rid of Corker.

[Truth29]

This is all just the dance of the seven veils around the edge of the black hole that is the skyrocketing public debt and entitlements. Someone like Obama who wants to take the US down and cripple it in the world cannot lead us away from the disaster to come.

[traditional1]

I'd gladly pay 1000X what those who pay ZERO are paying. (That would be a Tax Cut for me! LOL)

That's MORE than fair in my book.

How is paying Zero taxes "fair" to those who pay ANYTHING HIGHER THAN THAT?

However, all the parasites who think they have a "Right" to get free stuff have no problem paying no taxes to get YOURS.

[andyk]

To the democrats, getting past the fiscal cliff is solved by just upping the debt limit.

[grumpygresh]

The GOP should realize that expiration of the Bush tax cuts increases the number of taxpayers. The GOP should go ahead and play chicken with 0bama. Eventually, the GOP would gain political support to reduce taxes across the board as the economy fails.

[GeronL]

This “fiscal cliff” crap is nonesense.

Their solution will make it worse.

[plain talk]

yeah, if they kill the Bush tax cuts then it just goes back to Clinton era tax rates. Dems think the Clinton era tax rates are fine.

Unfortunately our side does not play chicken very well but this would be a great time for the Republicans to dig in their heels and play hard ball. The dems think they possess some new power after the elections and would go all the way and taxes would go up if the Republicans held fast. Pubs should refuse to raise ANY taxes.

[grumpygresh]

I agree. There are two possibilities if the GOP does remain firm: retention of the current rates for all or resumption of the Clinton rates. Either are better than a compromise. But, as usual the GOP will choose the option that weakens themselves politically by alienating their base. This is why zero is engaging the GOP in this battle; his only goal is to destroy the conservative base.

[Georgia Girl 2]

You can tax people into oblivion and it will not have any effect on our deficit. We are going over the cliff folks. Its just a matter of what month its going to happen. Keep buying food.

[dr_lew]

This “fiscal cliff” crap is nonesense. Their solution will make it worse.

I think the concept itself is sound. AFAIUI, if you reach the point where your "debt service" absorbs your income, you're off the cliff. The metaphor means that there is nothing you can do about it at that point. I agree that the discussion about it is nonsense, and seems to indicate that Sen. Corker, e.g. doesn't understand the concept. "Get beyond the foothills" ???

[meyer]

Don’t go wobbley, Corker!