Why should I care if we fall off the cliff and the tax cuts are repealed. Won't we be better off?
Some believe that if tax cuts are repealed it could lead to a chain of events that sends us into a depression.
Frankly I think long-term predictions of the economy are less accurate than long-term predictions of the weather, so who the fuck knows.
It's not about the tax cuts being repealed (that would be a good thing). It's about the automatic spending cuts that would kick in if an agreement isn't reached... dramatic and severe cuts that would definitely throw this country into a deep, deep recession.
It's basically a big ol' game of chicken, OP. The President and the Democrats now have the upper hand. The Republicans should have taken the deal they got the last time.
If, and it's a big if, we 'go off the fiscal cliff' in January, it's nothing to worry about. The politicians and the media will freak out but that's just what they do. It starts off slowly and increases over time, giving DC the opportunity to fix it before anything really drastic happens. Any temporary tax increase can be removed retro-actively.
Republicans want it to look like they're being forced to make a deal because it is going to include tax increases. Democrats want the same thing because it will include cuts in entitlements. It's all a big CYA thing. No worries.
Markets and the people who make them are somewhat superstitious. The reverberations might be costly. So, I'd prefer that the parties make a deal, but they shouldn't give away the bank, and they especially shouldn't take any hits on Obamacare. Fuck Boehner.
I'd like to point out for the ninth time that these are not tax increases.
It is the end of a temporary tax reduction, and taxes are reverting to what they already were.
We have known since 2003 that the reduction was temporary.
Since the the cuts did not create jobs or stimulate the economy, their reversal won't kill the economy.
The question is how devastating the automatic spending cuts will be. And since they will fall disproportionately on the military, won't they, I fail to see the doomsday scenario.
The president wants to preserve middle class tax cuts, but these are small, trivial and not worth the effort. The president wants to preserve spending, but somebody has to persuade me why this will have such draconian effects.
If we go off the fiscal cliff, a lot of federal employees may be furloughed or laid off. Some of the newly hired, who are on probation, may lose their jobs. That will contribute to pushing us into a second depression. Federal employees have already had their wages frozen for the last 2 years, so they have paid their part toward reducing the debt.
[quote] the automatic spending cuts
The landmines strewn in the path of returning the tax rates to normal.
While they should be doing something about the cliff, they should also do something to create jobs which no one is talking about. If unemployment was lower there would be more revenue and the cliff wouldn't be so cliffish.
[quote]they should also do something to create jobs
Obama isn't interested.
Republicans are pretending to wring their hands at their defeat, leaving the Democrats to beat up their constituency and take the blame four years from now.
Don't worry. 100% chance they will kick it down the road. Easily done.
Jesus Fucking Christ, R10, go back to freeperland or whatever rock you crawled out from under. And remind yourself about how the republican House has stopped every jobs initiative Obama put forward for the last 4 years.
R10 is R8 and R11.
R10 is a moron.
Charlie Pierce refers to it as the Gentle Fiscal Incline.
Fiscal Cliff? Didn't he bottom for Girth Brooks?
The fiscal cliff is another Republican red herring.
Treat Obama like Bush or Reagan you miserable fuckers.
Move on and Obama, like Clinton, will save your miserable asses.