Skip to comments.Fed Chairman Ben Bernanke Warns Congress on ‘Taxmaggedon’: ‘If You All Go on Vacation...
Posted on 06/07/2012 7:09:27 PM PDT by TigerLikesRooster
Jun 7, 2012 4:46pm
Fed Chairman Ben Bernanke Warns Congress on Taxmaggedon: If You All Go on Vacation, Its Still Going to Happen
The Federal Reserve Board Chairman had a stern warning today for Congress: Taxmaggedon is real, its coming and only lawmakers can save the nation from falling off this rapidly approaching fiscal cliff.
What is particularly striking here is that this is all pre-programmed, Fed Chairman Ben Bernanke said. If you all go on vacation, its still going to happen, so its important to be thinking about that and working with your colleagues to see how you might address that concern at the appropriate time.
Bernanke, speaking in front of the Joint Economic Committee, was referring to the year-end intersection of the Bush-era tax cuts expiration, $1.2 trillion in scheduled spending cuts and expiring payroll tax breaks, which, if not addressed could cost American taxpayers with $310 billion in tax increases next year.
The picture the Fed chairman painted today was not pretty.
(Excerpt) Read more at abcnews.go.com ...
And the gop will cave. They have two choices. Cut the debt and watch the riots or watch the credit rating go to junk level.
Personally, I’d love to see these taxes kick-in, if it saves us from becoming another Greece by reneging on our debts. Most of these taxes are middle class, and lower, and they WILL bring in a lot of money (that’s a dirty little secret in the tax world - taxing the rich doesn’t work, but taxing the poor works fine).
The way I see, if Americans want to keep our welfare state (including at least half of the elderly people on this site that won’t let us reform Social Security), we might as well start paying for it.
I’m with you.....let the 48% that pay no taxes chip in their “fair share”.......
I appreciate your sentiment, but let’s be realistic.
Do you really believe this government will not spend more than they take in? I don’t.
Honestly id like to see the credit rating to go to junk, I just wish that would somehow keep people from lending money to the Federal Government. Thus burdening helpless future generations with the obligations of today.
Truth29, no truer words have been typed.
The dimrats have NO loyalty to our country.
Their only loyalty is to their party.
The soviets were that way.
If they don’t get their way, they WILL plunge our country into collapse and put the blame on the repubs with the help of their party’s media.
What’s ironic is that they think this intentional destruction won’t affect them.
“Do you really believe this government will not spend more than they take in? I dont.”
I hear you, but one thing to keep in mind is that things have changed. I remember Reagan saying that the one good thing about his deficits back then (which were quite large at the time) was that it kept the Dems from spending more. Then Clinton initially gave up on Welfare reform (before Newt took over the House) because his administration couldn’t find the money for it.
...now go to today. Today, the idea of controlling the deficit is TOTALLY DECOUPLED from spending. Obama sent the deficit sky-high, to the point where it has to crash this country worse than the depression, and has don’t absolutely anyhing to control it, either on the tax or the revenue side.
Spending today is based on whatever Obama and the Dems want to spend - what’s collected in taxes doesn’t matter at all. So if revenue did increase with all of the tax cuts expiring, that does not mean an automatic increase in spending...it just means a smaller deficit (but still a pretty big deficit). Spending now increases irrespective of revenue and the rate of spending growth is also now irrespective of revenue.
Those are my observations for the past few decades, at least.
“People receiving their incomes directly or indirectly from government produce net negatives in revenues/debt. People in the private sector will intensify successful efforts to become more independent after the mere suggestion of tax/fee hikes.
On May the 1st (May Day), an unemployed elementary school teacher shot my back window out, as I drove past her house. Unlike her political/regulator class (those who control local politicians in both socialist political parties), I’m lucid, busy, and can fix that myself for next to nothing.”
I’m not sure what the second has to do with the first, but since you’re posting in the first person, I’m glad to see that you only took some property damage (or at least didn’t get killed).
My point about taxes on the lower classes is that it gets very difficult for them to cheat, they simply don’t have the resources. They’ll cheat as much as they can and they will adjust (i.e., cook their own meals, not hire gardeners, etc.), but in the end revenue will increase if these freeloaders started to carry some weight.
Most of the real parasites are degreed, receiving relatively large incomes from government and committing crimes against private sector citizens. The default and housecleaning process will be completed.
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