Wednesday, January 2, 2013

A contrary view of the fiscal cliff deal:

Obama's mantra has been that the country's fiscal problems are due to the rich not paying " their fair share," which anyone who knows anything about the nations economics knows to be complete stupidity, since even if you take 100% of the rich's assets doesn't solve the problem.

Now, however, Obama has gotten what he wanted, a tax hike on the "rich."  What's his plan now?   It's nothing, and the poverty of his position is or will be apparent even to low information voters.

Assessment: Republicans win by giving him what he wants.

Second, the tax rate has gone up for those in the top few percent of earners, but the Bush tax cuts for the other 98% are now permanent.  Plus, the AMT was patched to avoid hooking smaller income tax payers.

Assessment: Republicans win (in the eyes of most).

When these negotiations started, Obama wanted 1.6 trillion in tax hikes and no debt limit.  Boehner countered with 800 billion.  The final deal was for 600 billion.

Assessment: Republican win, as Obama and the Dems accepted even less than Boehner originally offered.

In a short while, the debt limit issue will become white hot.  Obama gave up a deal on that issue to cure the fiscal cliff.  He already got his tax hike on the 2%.  What's he gonna bargain with this time?  Why couldn't Republicans, who want smaller government, simply tell the Dems to live within their budget ( oh yeah, what budget?) and forget about a debt hike.  Spending cuts are now back on the menu.

Advantage: Republicans.

1 comment:

  1. I am still reading on this, and I hope you are right, but the little I have read so far seems to show the reps caved and got played once again. That there are very few spending cuts a a lot of tax increases.