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We have seen what the goptp has done in 2 short years. Copied the Bush years. The same formula that got us into this mess.
Going back to the Clinton Tax rates is a blip on the radar for revenues...roughly $80B in a $3T budget. The real cuts need to come from reducing/eliminating government programs, which is what Clinton and Gingrich agreed to, and resulted in a balanced budget (i.e., welfare to work). The DEMs are already circling their wagons around sacred cows, so the Pres will have to show leadership and chutzpah. The DoD has already taken a $550B cut, now it time for other government agencies to pony up as well.
"They have no problem with the fact that 47% pay NOTHING at all in taxes"--Nonsense, Andersod. Obviously, you have been hook, line and sinkered by the GOP into the notion that income taxes are the only kind of tax. Virtually all of us pay taxes (payroll, property/renters, FICA, Medicare, and all kinds of others depending on where you live). The net result is that, as a percentage of income, the 99% are paying much, much more than the 1% in taxes.
fiveofusNov. 27, 1210:01 AM
Second term: repeat of the first term: class warfare. I'm utterly exhausted from hearing the word "fair". What's fair?...... Raising the top marginal tax rate by 3.5%.
There is so much argument about which Party is more responsible for "compromising", and how Obama should best "lead" to make this happen. My question is, what responsibility does business have to "lead" us out of this financial crisis? Business continually complains about taxes and regulations, and wants the Governement to "get out of the way", but then turns around and asks Governement to provide adequate infrastructure and a well-educated/well-trained workforce for them, AND if anything goes wrong, to bail them out in order to preserve jobs. All the while, they stockpile cash and pay enormous salaries/bonuses to those at the very top of their hierarchies. Only in America do businesses get to have their cake and eat it, too.
im sure every republican would be happy to go back to the Clinton tax rates. they would vote for it in a nano second, IF, the Dem's would also go back to the amount of spending vs GDP that we had during the Clinton period. (wasn't it like 18% vs 23% that we have now?)
"The economy was flourishing under Clinton. To say that allowing the tax rates to revert back to those under Clinton results in a fiscal cliff is ludicrous." Over the long-term, you are absolutely correct, nomeds. The difference in the short-term is in your premise: The economy was flourishing under Clinton. This made it possible for everyone to pay a higher rate in taxes without affecting growth. In fact, as we continued to apply the resulting surplusses to the debt (we were on track to pay it off entirely within a decade), this boosted confidence even further and allowed for even greater growth. Unfortunately, Bush decided to end this symbiosis with a massive tax break for everyone (but especially the wealthiest in the form of capital gains tax reductions). Then, instead of raising them again to pay for two wars and Medicare Part D, he decided to borrow, thus fully reversing the Clinton era course. As a result, when everything finally collapsed and we really needed to borrow to stimulate the economy again (Econ 101), we had no capacity to (reasonably) do so. In the end, we had no choice in order to avoid a second Great Depression, but now find ourselves treading water between a rock and a hard place with no clear path to renewed debt reduction. The only path forward in the near-term is to increase revenues by taxing the top 1-2% (to tax the middle class would further harm the economy) while at the same time gradually reducing benefits. After a decade or so of this, when the economy starts to grow again significantly, we can move back to Clinton era taxes for everyone, while continuing to hold the line on benefits, and thus begin serious debt reduction once again. Fasten your seatbelts, everyone, it's going to be a bumpy ride.
"im sure every republican would be happy to go back to the Clinton tax rates. they would vote for it in a nano second, IF, the Dem's would also go back to the amount of spending vs GDP that we had during the Clinton period. (wasn't it like 18% vs 23% that we have now?)" Hmm . . . let's see, flipper. We dramatically reduce demand by taking money out of the hands of Joe and Jane American at the same time as we reduce spending by the only entity (Gov't) that is currently doing so (while businesses continue to stockpile record amounts of cash). If you are hoping to completely tank the economy into another Great Depression within the next 6 months, well congratulations, you've found the perfect recipe!
Flipper--I sould add to my previous post that I absolutely agree with you in the longer-term. Hopefully we can get back to Clinton Era taxes and spending (relative to GDP) someday. Unfortunately, to do so while the economy is still sputtering would be disastrous.
The only to get any meaningful spending cuts from these clowns is to go over the cliff. So let 'er buck!
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