While many, especially the news media are celebrating the passage of the much discussed Fiscal Cliff Bill, some of the celebration is probably not justified.
I of course am always glad when the government lowers my taxes! In this case it comes with a bitter pill, perhaps not so much for myself, but much more for my children and grandchildren.
Should I celebrate when I know that the mental midgets in Washington are sailing the USS Titanic full speed ahead into the iceberg field? Should I celebrate when the politicians and media pundits and talking heads fail to give the full story? Should I celebrate when once again I see Psalm 2 Government?
I may be odd man out - but am not celebrating this fiasco. Let me give three reasons:
The so called fiscal cliff was the result of the crisis that ocurred when the federal [sic] government reached the debt limit last time. As part of the agreement to extend the debt limit to $16,400,000,000,000.00 (16.4 Trillion Dollars) it was recognized that the debt was out of control and threatened our nation's future. Now one does not have to be a rocket scientist to understand that simple concept - you cant borrow forever, someday it has to end.
So this much heralded piece of legislation, negotiated in a crisis mode, with massive media coverage has been presented as a solution to our current problem. But is it?
The Congressional Budget Office (which usually under estimates government deficits anyway) reported that their analysis showed this legislation would add $3,900,000,000,000.00 (3.9 Trillion Dollars) to the debt (over next 10 years). Since we were over the so called cliff when it passed - this much celebrated and touted deal will by itself increase our out of control national debt by just under 25%!
So now that the out of control debt is now even more out of control - it will not be long before these mental midgets will be back to get what ever tax savings I might realize, plus some more to boot! Geeze the inmates are running the asylum!
So yes, lets all go celebrate. Just believe the lies and we can have a great time.
If you take the time to look at the Congressional Budget Office report, even making the assumption that it more accurate than average - there is something fishy going on!
As we know the whole theory was to reduce the deficit (long term debt) by increasing the tax on the rich. So this legislation does just that - it increases taxes on the rich! Estimates are approximately $600,000,000.00 (600 Billion Dollars over 10 years). Aint that great? According to Obamanation, the talking heads and most of the Democrats we can solve our fiscal problems just by taxing the rich.
But how does taxing the rich to give it to other people sound? Instead of taxing the rich to reduce the debt, this legislation is just a disguised way to take their money and give it to other people or corporations. If you dont believe this take a few minutes and look at the few facts that we have available:
The expected income from tax on rich: $600,000,000,000.00 (60 Billion Dollars per year) over 10 years. That is from other reports and is probably a reasonable estimate. Now from the Congressional Budget Office report look at the projected increases in government spending from this legislation for 2013: $57,428,000,000.00 (57.4 Billion Dollars).
That leaves 2.6 Billion Dollars to address our next debt crisis this year. The rest is just being spent! Some of it may be spent on very worthwhile things, but whether worthwhile or not this tax increase is being spent!
What got us into the mess to begin with? Excessive spending! What does this bill propagate? Excessive spending! What is the only thing that the mental midgets in Washington are capable of? Excessive spending!
Will taxing the rich for redistribution of wealth (Socialism) work? No! When they start running out money again they will come back for more, in a crisis -- possibly another fiscal cliff. You know it is coming. This legislation has guaranteed a minimun 25% increase the debt and this years $60,000,000,000.00 Dollars of tax from the rich is being spent this year.
Where are they going to get it next time?
Well under socialism, all of your money belongs to the State and they will negotiate on what they decide to let you spend and they will spend the rest for you. So celebrate all you want to, while you can. This was just another step toward socialism and the day of judgement will come.
Most will believe that the USS Titanic is unsinkable. We can spend forever and just tax other people and when we run out of people to tax we can just borrow forever. Afterall 57 Billion Dollars is only $190,000.00 per man, woman and child in the country.
So why worry, lets just Celebrate!
Congressional Budget Office analysis of Fiscal Cliff Fiasco