Time To Go Over The Fiscal Cliff?
The first hints at what fiscal cliff deal may look like are pretty ugly. Massive tax hikes up front with paltry spending cuts scheduled for years and even decades from now. Reports are that President Obama isn’t going to budget from his tax hikes position.
So Jim Geragthy writes that perhaps it’s time to let America go over the cliff:
At this moment, Republicans in Congress need to examine which presents a more dire threat to the country:
A) A double-dip recession driven by the sequester and the expiration of the Bush tax cuts, or
B) the public’s belief (verified through polling) that our giant debt, our ticking time bomb of entitlements, and our gargantuan government can be solved by “asking the richest Americans to pay a little bit more,” as Obama insists.
Option A is terrible, but Option B is the giant locked door blocking all of the real solutions.
So if we must have tax hikes, let the tax cuts for every income level expire and let everyone of every income level pay higher taxes. Destroy the illusion among so many voters that they can get all the government they want without paying more in taxes.
Limbaugh, too, says it’s time for Republicans to walk away.
…the only leverage that I can see that they’ve got is to back out of this and make sure that whatever happens, they don’t have any fingerprints on it. I know what you’re saying, and you’d be right. You’re saying, “But, Rush, but, Rush, no matter what the Republicans do, they’re gonna get blamed for it.” Yes, totally true. No matter what happens. If there is a reported recession, in fact, it will be said to be the Republicans in the House fault. No matter what happens, that’s going to be said, and no matter what happens, as we sit here now, the American people, the majority of whom, are gonna believe that.
As painful as the expiration of the Bush tax cuts would be, as much as it would hurt our economy, there’s something to be said for allowing all Americans feel the pinch of expansive government spending.
Obama’s plan is to allow this fairy tale of ever-growing government paid for with other people’s money to expire. Republicans, of course, are very sensitive to being blamed for the economic downturn that would result from this. And they should be, because that would absolutely happen, but long-term it may be time for some tough fiscal medicine for the nation.Tags: deficits, fiscal cliff, national debt