To: Billy Roy
From: Jim in Austin
I am so confused about the fiscal cliff. Help?
To: Jim in Austin
From: Billy Roy in Hubbard
First, everyone in Austin is confused. It is that stupid communist newspaper, The Austin American Statesman (American my ass!).
Here is the net:
Our federal government has tax revenues annually of about $2.5 Trillion
Our federal government spends annually of about $3.5 Trillion
Even Biden knows this doesn't work. Now comes the politics aimed at the idiots (Biden included). Revenues come mostly from taxes. Republicans feel when taxes are low, the economy grows at more than the current anemic rate of 1.5% (should be more like 4%) because businesses and people invest and spend. They feel the larger the economy the more the federal government receives in tax revenues. Republicans believe the big problem is too much spending not too few taxes and an economy that is growing too slowly.
Now the idiot pitch. Dems say they believe additional government revenue should come from taxing rich people who aren't paying their fair share. They have argued the "Bush Tax Cuts" are not paid for and costs the federal government between $200-$300 Billion each year. The Bush tax cuts to households making over $250,000 a year accounts for only about $32 billion of that. Dems say there should not be any spending cuts to the middle class (including cuts to entitlements which represent 2/3 of all spending).
The big question: How does increasing taxes on the rich by $32 Billion annually solve a $1 Trillion deficit problem? Even Obama's math comes up short since this would only be 3.2% of the problem. Not to mention the $32 Billion tax increase would hit small businesses forcing layoffs and slowing plans to expand. That means fewer jobs.
To put this in perspective extending emergency unemployment benefits (put in place because of the terrible Obama economy) will cost about $5 billion per month or $60 Billion annually (twice the tax increase on the rich).
So what is our fearless leader in the White House focused on? He claims to have a mandate from the 98% of the people who make less than $200,000 to tax the 2% who make more and build businesses and hire people. He is obsessed with this single issue and his idiots are eating it up.
Just today the White House put out a press release about the dire consequences of the Republicans letting the "Bush Tax Cuts" expire for those making under $200,000. Just read this:
"Americans could spend nearly $200 billion less next year on cars, clothes, furniture and other consumer products than they would otherwise if automatic tax increases take effect as currently scheduled, the White House warned in a report issued Monday morning.
Such a crimp on demand would curb the growth of real consumer spending by 1.7 percentage points in 2013 and slow the growth of the overall economy by 1.4 percentage points, according to the report prepared by the President’s Council of Economic Advisers.
The White House released the report as part of an effort to turn up the pressure on Congress, which has barely a month to reach an agreement with President Obama on how to avoid the tax and spending changes or risk sending the nation back into recession."
Note the absurdity of this argument. If you don't raise taxes on employers (2%) we go over the cliff. If you do raise taxes on "the middle class" (98%) they will not spend money, and we will go over the cliff. So raise taxes on the rich gaining $32 Billion while losing the jobs and economic growth. Also, mark my word, Obama will say we shouldn't cut spending except on the military because the economy is weak. He will say he will cut later.
THE REAL TRUTH IS THIS IS ALL BULLSHIT. Obama doesn't want to solve the deficit problem. He wants the USA to go to its knees economically and the faster the better. He is only creating a scenario to blame the RICH AND THE REPUBLICANS for our decline. And the sad news is the idiots will eat it up.
Obama and his socialist followers are attacking the country, not only economically, but culturally (families and religion), and militarily (Middle East pullbacks and budget cuts, NOT TO MENTION WHAT HE IS DOING TO OUR MILITARY LEADERS).
I heard today that even PRAVDA is warning the US about our race to Communism. Obama doesn't want Communism because that would be too slow. He wants our destruction, and he wants it now.
Sorry, Jimbo, but that is the way it is.