House Passes “Fiscal Cliff” Deal That Makes Debt And Deficit Projections Worse

House Deliberates On Budget Deal Past Fiscal Cliff Deadline

The House has passed the “fiscal cliff” deal the Senate passed early this morning. The media, of course, is reporting this as “crisis averted.”

Which is an absurd notion. Via Zero Hedge, here’s a chart showing the CBO’s projected annual revenues from these tax increases (assuming “the rich” sit still for them and don’t move their money to avoid the tax increases) pitted next to the 2011 budget deficit:

Tax-Hike-In-Perspective

Does that look like we’ve solved anything? Does that look like “crisis averted?”

And keep in mind that, in addition to these new tax revenues, the “fiscal cliff” bill also includes $330 billion in new spending, and is projected to increase the deficit projects for the next ten years by nearly $4 trillion.

At Powerline, John Hinderaker points out that Republicans will be able to say “we told you so.”

…what happens now that Obama has gotten his way? It will soon become apparent that the fiscal cliff deal, including precisely the tax increases that Obama has been demanding for four years, makes hardly a dent in the deficit. At best, it will reduce the deficit by five or six percent. We will continue to run up deficits of close to $1 trillion a year, and the national debt will continue to grow, as Obama has always intended. This fact can’t be hidden; it will be reported. Journalists who have pulled their punches in the past because they wanted Obama to be re-elected will now begin to ask, what are we going to do about the deficit and the debt? At some point, perhaps sooner rather than later, interest rates will begin to rise, at which point the debt issue will become a crisis. And Republicans will say: we told you so.

Hinderaker is a bit more optimistic than I am. When the revenue from this bill doesn’t manifest itself, because the economy will likely react to tax increases in ways that produce less revenues, and when we realize that the debt and deficit problem isn’t really improving all that much the left/media will just say we haven’t gone far enough.

Republicans caved to tax hikes once, they’ll say, and they’ll cave again.

In related news, Grover Norquist is saying Republicans haven’t actually violated their “no tax hikes” pledges because both the Senate and House votes took place in 2013, after the Bush tax cuts (among others) had technically already expired.

So, according to Norquist, technically what Republicans were doing is cutting taxes again after they had automatically increased. Which sort of ignores the fact that some 77% of households will now be paying more in taxes.

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.

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  • Neiman

    I will look forward to who voted which way, but politics is a sport for cowards, I knew they would fold like a house of cheap, often used cards. Same thing in 2 mos with the debt ceiling, the Lord (Comrade-Chairman) Obama can no longer be denied anything.

  • mickey_moussaoui

    John Boehner told Harry Reid “to go f..k yourself”, twice. Let’s hope that translates into something when they vote on this.

  • SigFan

    No one should be surprised that the spendaholics in DC did this. They are no better than crack addicts who will continue on their path of self-destruction until they have ruined themselves and the rest of us with them. What a pathetic bunch of fools we have “representing” us.

    • $8194357

      Sad part is….Some of the ‘vangaurd’ know exactly what havoc and destruction they are doing while the others are just “Cloward/Piven fool tool cannon fodder” for anti American communist agendas….

  • Neiman

    Boehner Responds to Reid: ‘Go F— Yourself’

    Reid thought it was an invitation to self love making :)

    See story at Drudge Report.

    • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

      How very Christian of him, (and you), Old Pal.

      • Neiman

        As you are an admitted no-Christian, then everything you say and do must by definition be non-Christian. So, you will pardon me for ignoring your lies.

        Oh, I guess you think Comrade Reid calling Boehner a dictator was a Christian comment?

        • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

          By your definition, Old Pal, the Majority Leader is not a Christian.
          Therefore: “everything [he] say[s] and do[es] must by definition be non-Christian

          You’ve proven yourself as a non Christian time and time again, Old Pal. Why should you exclude yourself from your condemnation?

          • Neiman

            I see besides several lies above as usual, you are playing your demonic games and high jacking threads to spread your evil, for your father in hell.

          • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

            Old Pal, are you now saying Majority Leader Reid is a Christian?

          • Neiman

            I am saying and have proved you are the biggest damn liar on earth, driven by the demons that possess you and an offense to the nostrils of any decent human being – you know – excrement?

          • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

            You’ve proven nothing except your deep hatred of other Americans, Old Pal.

          • Neiman

            You are no American, you are a citizen of hell! LIAR!

          • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

            I am a proud American, Old Pal.

            You?

          • Neiman

            You are no American, you are a citizen of hell! LIAR!

          • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

            No, Old Pal, I’m a proud American.
            You?

          • Neiman

            You are no American, you are a citizen of hell! LIAR!

            I can play your silly games, yours encouraged by your demons, how long will you play child of hell?

          • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

            Silly Old Pal, what’s it gonna be, huh?

            Neiman realitybasedbob • 10 hours ago

            …I can play your silly games, yours encouraged by your demons, how long will you play child of hell?

            Neiman realitybasedbob

            …I will no longer play your demonic games, act like a grown-up or as soon as I detect your same descent into the sewer/hell, I will end the conversation.

            Can ya see why we love you so much, Old Pal?

          • Neiman

            Well see you crawled out of your lair in hell this morning spitting venom in support of Satan and the demons that possess your wicked soul.

          • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

            Old Pal, it’s pretty cold here this morning. I positive it not hell.

            So, what’s in gonna be, Old Pal?
            You did see your hilarious hypocrisy, didntcha Old Pal?

            You’re a pip!

          • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

            By the way, Old Pal, I applaud you for identifying your own words as spit venom supporting Satan.

          • Neiman

            Go to hel . oops, you are already there is spirit, your home for eternity.

            So many lies for you to tell Gay Bob, so little time left.

  • Mike

    Wait a minute! I’ve been hearing about the Bush tax cuts and was told
    they were for the wealthy! But now, the Bush tax cuts are to be extended to
    people for whom they did not exist? Those earning under $400,000? Have I been mislead?

    • http://realitybasedbob.sayanythingblog.com/ realitybasedbob

      Parroting talking points make you look like and idiot.
      Don’t be an idiot, Mike.

      • Neiman

        Looking in the mirror again Gay Bob? The idiot looking back is you, he’s a liar too.

      • $8194357

        If anyone knows parroting leftist talking points it is indeed boob…
        He is indeed one of the elite leftist idiots fool tools
        for the lefts agendas.
        Truth leaves him dazed and confused so don’t take
        his little critism to heart Mike, huh………..

      • http://proof-proofpositive.blogspot.com/ Proof

        “Parroting talking points make (sic) you look like and (sic) idiot.”

        Listen up, Mike! Nutterbob speaks from experience! Heh.

    • $8194357

      Misled…Lied to…
      And used like a dhimmi taxpayer mule to the elitist no risk venture capital
      agendas of the international one world new world order……

  • Mike

    The chart clearly indicates we pay too little in taxes. The answer is to turn over 100% of our income and let Washington decide what we get in exchange.

    • $8194357

      That has “always” been the end game results desired on the left IMO, Mike….

    • Neiman

      A friend suggested Boehner and McConnell pass a 95% tax on everyone, you know Comrade Chairman Obama will sign it and then let’s see how popular he’ll be.

  • $8194357

    The leftist a$$hats aren’t even trying to hide the deconstruction anymore, huh.
    Just in your face “we own you” corperate soviet governance……

  • Bat One

    Since the Zero Hedge chart is based on the CBO assessment of the legislation’s fiscal impact, its a safe bet that the revenue projections will turn out to have been optimistic, and the spending and deficit projections will be shown to have been substantially on the low side. Actual revenue generated will be closer to $50-55 billion and the deficits going forward will be well in excess of $1 trillion per year.

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