Tuesday, January 01, 2013

Thoughts on the "Fiscal Cliff"

First my apologies, for these comments on the "fiscal cliff" will not be as complete as I would like.

Based on information from a financial advisor, I understand the "fiscal cliff" to consist of the following events:
  • Expiration of general tax cuts, which will result in $255 billion revenue
  • Expiration of payroll tax cuts, which will result in $112 billion revenue
  • Sequestration hits which will cut $55 billion from the military budget (which could continue each year for 10 years), and cut $55 billion from non-defense spending in 2013
  • Implementation of an Alternative Minimum Tax patch, which will increase revenues by $38 billion
  • Implementation of PPACA (Obamacare) taxes on investments, which will generate $21 billion in revenue
This will result in a total of about $536 billion in additional revenue, or 3.5% of America's GDP, which will result in a negative GDP for early 2013--the "fiscal cliff."

I find it reprehensible that our national "leaders" are posturing as if they are our saviors from the "fiscal cliff" when they are the ones who created this problem.

Our "leaders" involved us in two wars, one (Iraq) most certainly a war of choice, on the cheap, meaning that the American people got tax breaks while the debts from the wars piled up.  It was as if we were being bribed to accept the wars, and now we are paying the price.  Anytime America chooses to go to war, the price of war needs to be immediately felt by the People so that we are more thoughtful about the wars we undertake in the future.  Now we see these wartime tax cuts going away--one component of the "fiscal cliff."

Our "leaders" passed Obamacare, another (unnecessary) component of the "fiscal cliff"...and a threat to our liberties.

Sequestration will happen because the budget supercommittee could not reach an agreement on how to cut $1.2 trillion deficit reduction package as per the Budget Control Act (August 2011). (source)  Another component of the "cliff."

And now we expect our "leaders" to do the right thing.  How can we when their behavior is to the contrary?  For example, the Senate has failed to pass a budget for the past four years.  This is clear dereliction of duty and Congress should either not receive their salaries until they pass a budget, or just go to jail.  And these are the people who will "save" us now?

Our current crisis has been generated by the national "leadership" on both sides of the aisle, not by some alien from another world.  They should be held accountable.  We need to go over this "fiscal cliff" and more so that the American people finally wake up and see our "leadership" for who they are and demand accountability.

It is clear by their actions that the people in all three branches of the government no longer represent We The People, but something else.  This drama being played out over the "fiscal cliff" obscures the real problem which is a true existential threat to our nation: our accelerating national debt.

--Against All Enemies

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Disclaimer: These opinions are solely my own, and do not reflect the opinions or official positions of any United States Government agency, organization or department.

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