There are actually two events that are coinciding. There are the current tax rate expirations and medicare provider compensation reductions and mandated defense spending cuts. And there is the National Debt Limit.
The rate expirations are just that - GWBs tax deductions that will expire pushing income taxes back up to Clinton levels. The medicare provider compensation rate reductions are almost a yearly thing that Congress has been kicking down the road for decades it seems. Obama needs to keep his HHS/ACA doctors happy or they’ll revolt when the 2014 ACA draconian measures kick in.
Back about a year ago or so, the Debt Limit increase deal between Congress and the President included many things if a Blue Ribbon Commission couldn’t “work things out” by about now (spending).
Well, they haven’t, and the cuts are coming across the board in spending and Obama don’t like it one doggone bit because he can’t continue historical entitlement support levels, and with the DEBT LIMIT, he can’t add that extra 1 or 2 Trillion dollars of entitlement spending like he did in 2011/2012.
What does all this mean? Obama wants to extend the BUSH tax reductions - only for certain people - Obama people, and he wants to symbolically rape people who have been successful through hard work. HE KNOWS AND THE MEDIA KNOWs that if the tax rates expire, IT WILL PUSH the economic situation to a much, much worse level - HIGHER unemployment, LESS Federal Tax Revenue (cash hoarding will stop GDP expansion that brings more tax revenue and so on), and less money for “his” people.
Ordinarily, Obama would just tell little Timmy Geitner to have the Fed print up more cash to buy our own T-bills and he could kick the entitlement can (expanding) down the road four more years. With the DEBT LIMIT, he can’t (not legally, anyway). So he’s between a rock and a hard place.
If the Republicans didn’t do a deal - did nothing, he’d automatically have higher tax rates, less tax revenue, less medicare compensation payments and still have a debt limit that essentially limits his spending (and entitlement buyoffs) to what’s brought in - just like every hardworking family has to deal with week in week out.
That is why I don’t want a deal. I want him stopped, period. If it costs me $10 for a gallon of milk or gas, my SS check, whatever, it would be worth it to see him financially impotent. If this Democrat spend, spend, spend ideology is fully and completely discredited, then there is no hope for this country, and that will take some sacrifice.
Thank you for that thoughful explanation. I don’t disagree that he needs to be stopped, even at a price, but I don’t see it happening.
He wants to go over “the cliff”. He’s already told Reid his terms which I’m sure stop at Bush tax rates for 250K and less, along with even more spending. He wants pain from the first paychecks in January. Then he will own Congress and be able to “give” obama “tax cuts”.
He knows he owns the microphone and noone but the Repub’s are being blamed. There will be so much nashing of teeth the longer this goes on in January/February, he figures he (and likely will) will own the negotiating process in both the tax rates, automatic spending cuts, and the debt limit expansion. By that time we will also be talking about being downgraded.....again.
I don’t disagree with your theory about stopping the spending; I just don’t see obama playing along or the Republicans being able to explain to the public what he is doing. Besides, too much of the public thinks it’s just fine to take more of some peoples’ money than others. We have an increasingly stupid and immoral society that don’t mind being takers, and in fact feel morally superior taking from others.
I just don’t see any good outcome from going over the cliff, from not going over the cliff....I’m quite pessimistic on how this will turn out. I wish I wasn’t. obama is out to screw this country, and he’s not losing any time. Until I see Repub’s (in force....not just Boehner)get in front of a camera and call him what he is........I know we’ll likely never beat him. I don’t think they know how or are able to outfox him. Besides, calling obama out for who he is.....is also calling out the majority who voted for him the same thing.
I want him stopped, as well. I hope your approach will work...I’m just not optimistic that it will.