01 December 2012
Fiscal Cliff Notes
In one month, unless Congress and the President can agree upon a solution, sequestration will occur which will automatically make an across the board 10% budgetary reduction. In the District of Calamity, this willy-nilly cost cutting is know as going over the fiscal cliff.
As most Americans are in the Christmas preparation rush and President Obama is set to rush off to a 20 day $4 million holiday in Christmas Vacation in Hawaii, it does not seem that the calamitous effects if the Lame Duck Congress is unable to craft a compromise budget are widely understood. So here are some fiscal cliff notes:
President Obama offered an idea to allegedly avoid the sequestration crisis:
It is worth noting that all of the savings which the White House offers are vague and in the future. So what do conservatives think of this "plan"? Think of Charlie Brown trying to placekick the football with a conniving center like Lucy.
Maybe we should not take Mr. Obama's first proffered plan seriously. Charitably, it might be an opening bid. Maybe Mr. Obama's pronouncement during the debate the sequestration will not happen alludes to political omnipotence. More likely, President Obama is posturing and forcing the fiscal cliff is a strategy to blame Republicans either for the resulting taxes or for the wrecked economy when we go over the fiscal cliff. Then the White House can look "reasonable" by trimming their outrageous opening offer by a third and still blame what Mr. Obama has termed "the enemy".
Well, President Obama's proposal was not taken too seriously on Capitol Hill. Senate Minority Leader Mitch McConnell (R-KY) laughed at Treasury Secretary Tim Geithner when the White House's "Modest Proposal" was presented last week. McConnell opined that Obama made an outlandish proposal that should not be taken seriously and was a step backwards. Moreover, the Senate Republican leader proclaimed: "President Obama can't get everything that he wants. Those days are over."
President Obama played Campaigner-in-Chief by pitching his opening offer at a toy factory near Philadelphia, comparing uncooperative Republicans who were Scrooges and going to give middle class folks lumps of coal in their stockings. The urging the wealthy to pay "their fair share" class warfare is rich, as there is no way that the top 2% of taxpayers will be able to cover the $166 billion tax hike in 2013.
Some have suggested that Republicans should take President Obama at face value and then vote "present" on his outrageous offer. Of course, there are not enough Democrat votes to ensure passage in the House, but much like the Obamacare bill, a handful of squish Congressmen can be "bought off". A better tact might be to take Guy Benson's suggestion and pass the Simpson-Bowles bi-partisan deficit reduction plan, which the Obama Administration commissioned and was hailed by an adoring Lamestream Media and then promptly abandoned. But unless Congress and the President get serious about avoiding the fiscal cliff, it might be Thelma and Louise time.
h/t: A.F. Branco