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The Fiscal Cliff Notes

fiscal cliff

Article by Keyboard Cowboy
independent
My wife thinks our family budget is nearing the "Fiscal Cliff" because we can’t afford her buying brand new $100 shoes once a month. I guess she expects me to bleed more money to pay for her unnecessary luxury. Call me crazy, but I think she should cut her spending elsewhere to pay for her shoes. I guess it isn't her fault. This generation of politicians and voters believe they can have it all.

At midnight on December 31, 2012 our Federal Government will be going over a proverbial "Fiscal Cliff." Short of an act of God, that is when the 2011 Budget Control Act will take effect. This would cause a 2% payroll tax increase and an end to the Bush era tax cuts. The Defense budget and Medicare spending will be deeply cut, but Obamacare will remain intact and taxes to fund the program begin in 2013. Every politician has their priority.

Alas, you can't have it all. This is common sense that Democrats and Republicans alike don't understand. Social security, Medicare, Medicaid, Food Stamps, and other attempts to "eliminate" poverty take 62% of the Federal budget. The Bush tax cuts "cost" roughly the same as Obamacare – about 1 trillion over ten years. Some want to just confiscate more taxes to rid the world of poverty. Coincidently, the cost of America's "war" on poverty is equal to our national debt of 16 trillion and the poverty rate is the same as when the "war" began. In that light, Social programs don't seem like such a great investment. On the other hand, tax cuts were used by both Democrat John Kennedy and Republican Ronald Reagan to increase work availability and grow the economy.

With the "Fiscal Cliff" fast approaching, too many politicians want to rob hard working Americans by increasing taxes. The sensible ones realize tax cuts result in more jobs and a better economy so people can buy their own $100 shoes.


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