Fiscal Cliff Plan: Tax Hikes Now, Spending Cuts Later

John+Boehner+House+Speaker+Boehner+Holds+News+G_xsmgQEhqjl

According to Politico, the plan shaping up behind the scenes as part of the “fiscal cliff” talks is front-loaded on big tax increases, with most of the spending cuts taking place a decade or so down the road:

Taxes will go up just shy of $1.2 trillion — the middle ground of what President Barack Obama wants and what Republicans say they could stomach. Entitlement programs, mainly Medicare, will be cut by no less than $400 billion — and perhaps a lot more, to get Republicans to swallow those tax hikes. There will be at least $1.2 trillion in spending cuts and “war savings.” And any final deal will come not by a group effort but in a private deal between two men: Obama and House Speaker John Boehner (R-Ohio). The two men had a 30-minute phone conversation Wednesday night — but the private lines of communications remain very much open.

The article notes that Obama isn’t budging on tax hikes, and that Republicans are agreeing to push off the cuts until “between 10 and 20 years from now.”

So tax hikes now, spending cuts probably never given how often Congress actually follows through on these sort of scheduled cuts.

We’d be better off driving the country off the “fiscal cliff.”

Update: Boehner is upset that these details were apparently leaked to Politico after a late-night phone call between himself and the President.

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters. He writes a weekly column for several North Dakota newspapers, and also serves as a policy fellow for the North Dakota Policy Council.

Related posts

  • SigFan

    Same old song and dance. And the taxpayer gets a beating once again. Idiots.

    • Hannitized, Proofs obsession

      If you are making more than 250k, I feel ya. If you aren’t, you might want to spend some time reading “What’s The Matter With Kansas?”

  • Deficit Hawk

    The Republican Party is dead! Sure they will still be around but their relevance is gone. The conservatives are leaving them in droves. This also explains how Romney got 3 million votes less than McCain.

    • LibertyFargo

      If Boehner makes a “deal” you may be right. Its too bad, because fiscally, Romney was WAY more conservative than McCain.

  • LibertyFargo

    A few things are CRAZY about this…

    “war savings” – they do understand that the overages in current military spending is all debt spending… right? So pulling back on “war spending” (Iraq, Afgan.) is like just cutting up your credit card. You STILL HAVE TO PAY THE BILL.

    “Increases now and cuts later” – WHAT THE HELL? Does ANYONE run their personal budget this way? REALLY? Common Sense 101.
    http://youtu.be/Li0no7O9zmE

    Anything listed as “Private” and “behind the scenes” with Boehner ACTUALLY MEANS, “Caving on free market, pro-growth, pro-liberty, principles while claiming bipartisanship” It is always a LOSE.

    We should have ousted Boehner when we had the chance. Now future progressives are going to hang the coming fiscal disaster around the necks of the “obstructionist” republicans rather than letting the progressives stand behind the wheel and ride this puppy to the bottom so we can see first hand how Greece got to where it is.

  • WOOF

    Just like Mitt Romney paying taxes.
    Wait’ll next year.

    • ‘Tom Crawford

      Woof, your lying…yet again.
      Romney has paid taxes every year.
      Jealous much?

      • WOOF

        His 2011 taxes were so embarrassingly low that he did not take deductions to which he was legally entitled. “Mitt Romney established a tax shelter in 1996 that allows him to take advantage of the tax-free status of a charity without actually giving much to the charity at all. Romney set up a charitable remainder trust in 1996, Bloomberg’s Jesse Drucker reports, a year before Congress cracked down on them,” still going. http://news.yahoo.com/romneys-not-charitable-tax-shelter-131217694.html

        • jl

          That’s what happens when you have no earned income, just capital gains income. But when Romney first made the money that is now invested in the market at a lower tax rate, it was first taxed at the high rate- 35% or 39% depeding on the time frame. So it’s been already taxed- the low rate is for the second time around. As said before, our 3rd grade math lesson is now over.

          • WOOF

            At some time in his life Bishop Romney probably paid income tax as most people did. Those days are long gone.

            See this pile of money, it’s carried interest, not earned income. Report some next year and call it capital gains, not earned income, or not.The Bishop is just a shyster tax lawyer. All he’s ever been.

          • jl

            Woof- Is there a point in there somewhere? I’ve seen 3rd graders write better understood sentences. “Those days are long gone.” True- But that’s what i said- that’s why he’s paying only capital gains. So are you refutting me (you didn’t) or agreeing with me? “See this pile…not earned income.” Exactly what I said- thank you. “Report some next year, call it capital gains, not earned income” Which is exactly what he did-legally. So your point is…? “The Bishop is just a shyster tax lawyer..” Now we’re really in the desperate 3rd grade mode of debating- name calling. He’s not a tax lawyer nor a shyster, but you’re just too intellectually lazy to come up with an adult thought. Again, if there’s anything illegal going on, please entertain us with it. You should have just said nothing- because now you show yourself as stupid.

          • Hannitized, Proofs obsession

            He was just an ambitious man and shyster, who looked down his nose at hard working Americans. That’s all he’s ever been, besides a draft dodger.

            Obama called it, he’s just a bullshitter.

        • jl

          “Embarrassingly low taxes..” Really? You seem to be the only on embarassed. And seeing as everything he did was legal, that would make the tax code embarassing, not what Romney paid.

          • Hannitized, Proofs obsession

            I could shelter my taxes, as BatOne reccomended….so I assume he also took the option, but I choose to pay more, so I can stand on my principles and put my money where my mouth is. So, yeah….Romney’s behavior is shameful to me.

        • Hannitized, Proofs obsession

          He was scum, still is.

  • Spartacus

    Realistically it’s “tax hike now, The End”

  • Spartacus

    Why not give Obama his tax hike on the rich and the small
    cuts he’s willing to agree to, and then refuse to raise the debt
    ceiling any further?

  • ‘Tom Crawford

    Same thing each time when dealing with Democrats – you do what we want first and we will do what you want later….and later never comes.

  • $8194357

    I have maxed out the amount of jewles on the cardiac shock machine…

    Its over…No more for me…God Bless and good luck all, Hear?
    No life left shes gone…

    http://www.afn.org/~govern/bankruptcy.html

  • sbark

    Deja vu all over again……Dem’cat Tip O’Neal used the same Lie to Reagan about spending cuts coming later. HWBush ruined his presidency when he again beleived a lie from the Dem’cat that spending cuts would follow tax increase.
    Spending the producer’s money is the only reason the Dem’cat party exists——without that money flowing to a permanent dependency class they are dinasaurs in a ice age.
    Boehner should double down—-ObamaCare should be on the table, not just mandatory entitlements and welfare.
    The problem is, to many RINO”s care more about getting re-elected vrs doing what is right, but that needed to be done a decade ago when GW proposed reform of Fannie Mae and SS, while still within site of Newts welfare reforms in Contract for america.

  • Hannitized, Proofs obsession

    Shocker! Boner leaks information to Politico then uses it to stir outrage among republicans, blames Obama. Typical.

  • pim

    republicans are change from the elephant to the w mammoth.

Top