Why Democrats are willing to walk off the fiscal cliff

[riverbendviewgal]

Not so good news for Republicans...I guess the people are fed up.

Less than 24 hours after Democrats publicly pronounced their willingness to jump off the so-called fiscal cliff later this year if Republicans refuse to drop their opposition to ending tax cuts for certain income levels, they got a bit of good news: the public is on their side. Forty-four percent of people in a new Pew Research Center poll said that a tax increase on incomes over $250,000, which is what President Obama and congressional Democrats are pushing, would help the economy, while 22 percent said it would hurt the economy.
Similarly, 41 percent of Pew respondents said that raising taxes on income over $250,000 would make the tax system “more fair,” while 21 percent said it would make it “less fair”.


http://www.washingtonpost.com/blogs/the-fix/post/why-democrats-are-willing-to-walk-off-the-fiscal-cliff/2012/07/17/gJQAtMYnqW_blog.html?wpisrc=nl_pmpolitics

[SoutherDem]

1. Republicans have ran for that cliff several times in the last two years

I think they thought is was their property. Their bluff has not only been called but they are having there best weapon used against them. They don't know what to do.

[patrice]

2. "a tax increase on..." that portion of individual incomes that exceeds "... $250,000, which is what

President Obama and congressional Democrats are" ACTUALLY "pushing..."

[riverbendviewgal]

3. compromise might come yet...lookee at this

A new report commissioned by the aerospace industry contends that across-the-board federal budget cuts set to take effect in January 2013 could cost the country’s economy more than 2 million jobs and raise the national unemployment rate by 1.5 percentage points over the next year.
The news conference comes as Senate Democrats are digging in their heels on a separate fiscal matter -- the so-called “fiscal cliff” facing the country at the end of the year -- seeking to damp up pressure on Republicans.
In that battle -- as well as in the fight over the sequester -- the impasse is largely due to disagreement between the parties over tax increases, an issue unlikely to be resolved until after Electon Day.

“Every state, every community, every industry is on the chopping block,” AIA President and CEO Marion Blakey said at an event Tuesday unveiling the report. “The guillotine falls in just 168 days. Stopping it should be the very highest priority of Congress in the legislative days that remain this year.”

http://www.washingtonpost.com/blogs/election-2012/post/across-the-board-federal-cuts-could-cost-2-million-jobs-aerosopace-industry-funded-report-says/2012/07/17/gJQAlqzJrW_blog.html?wpisrc=nl_pmpolitics

[FarCenter]

5. Ultimately the Republicans will pass a spending bill to restore DoD funding without paying for it

All they have to do is peel off senators from some heavily impacted states like CA and VA and pass it under reconcilliation procedures.

http://armedservices.house.gov/index.cfm/files/serve?File_id=33a3bd4e-fcaa-4eef-bea6-12bd39265f9a
The U.S. Economic Impact of Approved and Projected DOD Spending Reductions on Equipment in 2013
has a table showing impact by state.

It will all be done in the name of national security. They put two wars in Iraq and Afghanistan on the tab, they can do it again.

[ProgressiveEconomist]

8. You may be right if Romney defeats Obama. But a veto from

President Obama can void any reconciliation attempt.

And a veto would be great politics for a newly re-elected President who wants to show that the good old days of endless "defense" waste is over.

The President's stump speech this very week calls for taking half the savings from ending two wars and investing it in a 2-million-student community college expansion and in infrastructure for the future.

[FarCenter]

9. If control of the Senate changes to Republican, they can wear Obama out.

Since he won't have congress in the second term, he needs foreign policy and military deeds to cement his legacy.

Also, the pro-Israeli lobby will argue that a strong defense is necessary, and they have allies on both sides of the aisle. Lieberman may caucus with the Democrats, but on defense he'll vote with the Republicans.

[ThomThom]

4. They should also pay the same rate as us working people

this 15% is complete BS

[Motown_Johnny]

6. the lame duck congress will do something stupid after the election

bet on it

[SickOfTheOnePct]

7. I would be interested in seeing the numbers if the following question were asked

Do you favor increasing taxes on those making above $250,000 even if it means that those making less than $250,000 will also see a tax increase, i.e., eliminating all of the Bush tax cuts?

Because that's what the Demcrats have said they're willing to do if the Republicans don't agree to split the cuts apart and keep the lower bracket cuts.

It may well be people don't mind their taxes going up as well, but I think it would be interesting to see the numbers.