The "fiscal cliff"

[SoonerPride]

This "fiscal cliff" is a manufactured "crisis" put in place last year to try and once again hold a gun to the head of the middle class to accept tax cuts for the wealthiest Americans.

Give us what we want or we'll crash the whole economy again!

I hope the Democrats call their bluff in this game of chicken and insist on raising taxes on the wealthy.

And cutting military spending is long overdo.

Be willing to go over the cliff.

[ProudProgressiveNow]

1. The economy will not crash....

if we let the tax cuts expire, as long as we act quickly afterwords. PBO holds all the cards. The republics will be scrambling to put something in place quickly. Legislation will be retro to 1/1/2013.

[OKNancy]

2. The problem is... the taxes will go up on everyone

and it will not be a good move for the Democrats if that happens. Only by figuring out how to tax the upper incomes, but leave the middle and lower income people as it is will it work to everyone's advantage.

If people here don't think it will be a disaster, you are kidding yourself. Obama is smart enough to know that, thank goodness.

[gravity]

3. But lowering taxes on the middle class is a bipartisan issue

It will just as big of a disaster for the Republicans too. Along with the cuts in defense spending, they will have more to lose.

[OKNancy]

4. very true, but "we" can't

stomp our feet and say... let it happen.. too bad. The economy can't take that approach.
Only internet warriors say that though. I have a feeling we will get some more Obama bashing when he does work with the Republicans.

[gkhouston]

7. I disagree. The Bush tax cuts are a serious drag on our economy.

We can't sustain them indefinitely and the Republicans won't vote to get rid of them. The fiscal cliff is the only way to get rid of them. I agree it could be perilous, but the economy is already in peril.

[OKNancy]

8. It won't happen.

I guess Obama will be in for a lot of bashing.

[gkhouston]

10. And he'll deserve it. After spending months on the campaign trail repeatedly saying that the rich

should pay more, after saying flat out he won't sign a bill that includes tax cuts for the rich, he'd be shooting himself in the foot if he doesn't stick to that. I can't imagine any deal that would be so sweet that people are going to think it's a fair trade-off for not repealing the Bush tax cuts for the rich.

[OKNancy]

11. you misunderstand my point

we won't go "off the fiscal cliff". There will be some sort of compromise.

[gkhouston]

12. I know that was your point. But for there to be a compromise,

either the Republicans will have to give up tax cuts for the rich (or trade something of equal value) or Obama will eventually have to sign legislation continuing tax cuts for the rich into law. I don't see either happening. I'm expecting a lot of grandstanding until the very last minute. Perhaps Congress will even accept some sort of craptastic "deal". But if the President then signs that "deal" into law, he'll be doing serious damage to his credibility and might as well start wearing the "lame duck" sign now.

[gravity]

9. But the Republicans will look worst

if the only thing preventing them from accepting the deal is a small tax hike for the wealthy. If the middle class doesn't put the pressure to deal, the defense industry will.

Obama holds all the cards here unlike the budget negotiations in 2011. The economy is stronger, he has more political capital and doesn't have to worry about reelection.

[Jim__]

6. Republicans have all sworn allegiance to Grover Norquist.

If taxes go up on everyone and then Dems introduce legislation to reduce taxes on the middle class, republicans have sworn to support that legislation. They've painted themselves into a corner.

[sadbear]

5. I'd rather see the fiscal cliff than the so-call Grand Bargain

[limpyhobbler]

13. They are trying to force us to accept Social Security,Medicare and Medicaid cuts.

They are going offer to allow taxes to go up on millionaires in exchange for "Entitlement Reform".

Entitlement Reform = cuts to vital programs.