I really, really like Michael Ramirez –
Our politicians did not do anything to solve the fiscal cliff during the last-minute, middle of the night negotiations. In fact, all they really did is kick the can down the road again.
The politicians created this crisis over a year ago, sat on it, and true to a previous post, political brinksmanship was fully in force with both parties of both Houses of Congress and the President weighing in on resolving “the crisis”.
What a load of horse manure!!
The Republicans caved with the “promise” that the all important spending cuts would be addressed later. The details of this debacle are:
They won Obama’s signature on $1 trillion in cuts over a decade after using the debt limit as leverage, but were forced into a humiliating surrender a year ago after trying to block an extension in payroll tax cuts. And in the last major act of the 112th Congress, they were forced to swallow legislation that contained next-to-no spending cuts, raised tax rates on the wealthy while keeping them even for the middle class and boosted deficits by an estimated $4 trillion over a decade.
And now, the newly enfranchised Congress will begin by raising deficits. National flood insurance legislation to help victims of Hurricane Sandy will create slightly more than $9 billion in red ink if it passes as expected on Friday (it did – Tom). A follow-up disaster aid measure that Boehner has said will be brought to a vote on Jan. 15 would add $27 billion — more if the bill grows, as seems likely, after it is reconciled with a $60-billion Senate version.
Meanwhile, the national debt climbs higher and higher for another two months (when Congress will address the issue – again!). And I have no doubt that yet another set of political Band-Aids will be enacted to temporarily fix this upcoming issue (from Townhall.com):
Legislation passed this week to avert the “fiscal cliff” could still leave in place deficits averaging more than $900 billion a year over the coming decade if Congress fails to follow its tax increases up with further spending cuts or tax hikes, the nonpartisan scorekeeper for Congress said Friday.
The Congressional Budget Office also says the measure should reduce the risk of recession this year by not slamming the economy with a huge tax increase.
The CBO issued a study in August predicting a $10 trillion deficit over the next 10 years if Congress simply followed existing tax and spending policies instead of following the laws that threatened a combination of automatic tax increases and spending cuts.
This weeks’ cliff law would cut $700 billion to $800 billion from CBO’s 10-year, $10 trillion deficit estimate. But it also leaves in place across-the-board spending cuts that would cut more than $1 trillion from the budget over that time.
Somehow, I don’t think that various Congresscritters are going to allow spending cuts to their favorite programs…
No, it’s going to be more of the same BS with the same result – more taxes, more spending, more debt, and a lower credit rating for the United States. And we’re going to be in the situation below, only worse:
We’ll be in an inner tube or treading water before long.