Obama keeps pushing country toward the cliff
December 05, 2012 12:21 AM | 2780 views | 19 19 comments | 10 10 recommendations | email to a friend | print
U.S. Sen. Saxby Chambliss of Georgia offered encouraging words at Saturday’s Cobb Republican Party breakfast when he declared, “I have never voted for a tax increase” and “I don’t intend to vote for a tax increase.”

He and his fellow Republicans on Capitol Hill are trying to find a way to avoid the “fiscal cliff” without raising taxes. Unfortunately, their counterparts — President Obama and the Democrats — seem to using the negotiations not so much as a way to avoid the cliff, but as a pretense for trying to bully Republican lawmakers into alienating their base by raising taxes.

Obama, who talked about the need for a “balanced” approach during the campaign, now has shifted back to his “raise taxes first” mode. The latest proposal from the White House encompasses $1.6 million in higher taxes and a new $50 billion “stimulus” program. Five major tax hikes slated to start Jan. 1 on things like flexible savings accounts and medical devices would become permanent. Obama has taken Social Security reforms off the table and offered little detail on how he would cut Medicare or other entitlement programs. And of course, the centerpiece of his strategy continues to be a class warfare demand that Republicans agree to higher taxes on “the wealthy,” who he defines as those earning more than $250,000 a year.

“Soak the rich” slogans are a poor substitute for competent governance. Even if the government was to confiscate everything that wealthy Americans own (as opposed to merely raising their taxes), it would only cover the cost of running the government for a few days.

House GOP leaders responded this week with a debt-reduction plan that would boost tax collections by $800 billion over the next decade by overhauling the tax code to reduce deductions, but without raising tax rates on anyone. They also would trim federal health programs by $600 billion, in part by increasing the Medicare eligibility age to 67 from 65; and would employ a less generous indexing proposal for entitlement benefits.

Obama is insisting that because he won the election, that the Republicans must cave on their core issue and raise taxes. In short, he’s trying to rub Republicans’ noses in it. As in past Democrat-driven budget deals, he’s pushing for higher taxes now, with the promise of spending cuts down the road. The current stand-off is not about money. It’s about politics, and about Obama’s all-out effort to neuter the Republican Party.

If it gives in to Obama’s bullying it would severely alienate its base, gain next to nothing in return and be tarred with a reputation for being easily pushed around. That’s a win-win strategy for liberals, but not conservatives.

As Sen. Chambliss put it in a guest column he authored on Sunday’s Marietta Daily Journal oped page, “Until we cut spending, control entitlements and enact meaningful tax reform our country will continue to morph into a European-type economy and our freedoms will continue to erode. …The answer is not to raise taxes and keep spending like there is no tomorrow.”

Obama has given every indication he intends to keep raising taxes and increasing spending. If we go “over the cliff,” it will be because he pushed us.
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Citizen Sane
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December 06, 2012
To MT887:

Wonderful response! So full of thoughtful and well-researched counterpoints. What a pleasure it must be to be in your household and to disagree with anything that you ascribe to (with no rationale)!!
MT887
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December 07, 2012
@Citizen Sane

Silly socialist nonsense deserves an equally silly response.
Citizen Sane
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December 06, 2012
To CobbCoGuy:

The Walton's net worth is $103 billion at this time and is the equivalent net worth of the lower 41.5% of the population of the United States. One of the several heinous aspects of this obscene center of gravity of wealth is the disproportionate influence that this power has in our government,in our commerce, and in our society. This is not "Class Warfare" and I am not a jealous socialist. This is 6th grade common sense and I hope that somehow this Cornelius Vanderbilt wealth/power accumulation can be reduced. Walmart pays workers so badly that the federal government subsidizes Walmart because many "associates" are forced into food stamps and other government assistance.

I used my 6th grade math to determine that the Waltons, at the current rate, will earn the equivalent of $7.4 billion per year. We should also tax this income at a higher rate. In addition, we should tax at a very high rate--all the individuals and corporations who ship our jobs and hide their money overseas and we should stop subsidizing oil companies (ie, more taxes). Companies who practice "Made in USA" should be taxed less than the other companies.

Lastly, taxes will rise from 35% to 39.5% (on over $250k), if President Obama prevails. This is substantially less than historical rates. LOOK IT UP! This segment of our population has NO room to complain about the tax rate.

Corporate profits are at ALL-TIME record highs.

Wages are stagnant and are at ALL-TIME lows.

Wake-up.
MT887
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December 06, 2012
@Citizen Sane

After you wake up from the fantasy of your Occupy camp site, explain to us how Obama built America. It always makes for great fiction. How long have you been a devoted reader of The Daily Kos?
CobbCoGuy
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December 06, 2012
Well, hello there, Citizen Sane!

Given your numbers for the Waltons (wasn't that a TV show?), they are going to earn a rate of return of 7.2%. If that is the "current rate" as you say, please tell me where I can get that sort of return on my dough!
CobbCoGuy
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December 06, 2012
Dear Citizen Sane and MDJ Readers,

I hope this doesn't cause anyone's brain to explode, but, y'all do realize, that for all intents and purposes, corporations do not pay taxes. Yes, you read that right.

The cost of any taxes paid by corporations is simply passed on to consumers.

So, tax corporations; and consumers pay more.

Tax corporations; and they'll spend untold amounts to minimize their tax burden. If corporations didn't have to worry about taxes, just try to imagine what sort of productive things all those smart accountants could be doing instead of gaming the tax code.

Tax corporations; and you bet they'll ship jobs. They'll ship jobs to a more tax-friendly country and, yes, jobs are lost, but consumers win because their stuff will be less expensive. You want jobs to come back? Then ease the tax burden.

If the U.S. abolished corporate taxes, can you imagine the tsunami of corporations from all over the world that would be seeking to relocate to this country?

Think about it and get back to us.
CobbCoGuy
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December 06, 2012
Corporate profit is another interesting topic.

If it is true that profits are at an all-time high, is it because of record revenue or cutting expenses?

Let say it's because of record revenue. Well, guess what; if you sell a lot, then you earn a lot.

Profit is NOT the appropriate metric. One should look at PROFIT MARGIN. That is, how much profit is earned for each dollar of sales.

A real world example that everyone is familiar with is the oil companies. Folks love to screech about how they are experiencing - Heavens to Besty! - RECORD PROFITS. Yes, their profits may be at all-time highs, but it is because sales are at an all time high. Sell a lot; make a lot.

It is more meaningful to look at the oil company profit margin. Look at profit margin across time and see if it is increasing, decreasing, or relatively stable. I bet you'll find it is pretty stable, across time.

Look at profit margin across industries. I bet you'll find the margin is higher in some industries and lower in others.

Make sense?
CobbCoGuy
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December 06, 2012
Yeah, one more thing.

Progressives screech about the oil companies shameful and obscene record profits. Then some Einstein says, "I have an idea! We'll TAX those "WINDFALL" profits." And the crowds cheer, "Yeah! Tax the bums!"

So, the politicians tax the oil companies more, and the oil companies respond by raising the price of gas and, guess what? It hurts the poor and middle class most.

And it not only hurts at the pump, it hurts everywhere.

How does your loaf of bread get to the grocery store? Trucks.

What do trucks run on? Gas.

And that ain't all. I heard some genius on TV talking about raising gas taxes. Not the corporate taxes paid by the oil companies, but the gasoline tax paid at the pump. Who is this gonna hurt most?

Ok, I'm done for the evening. My pizza is ready.
Citizen Insane
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December 07, 2012
@Citizen Sane

Your fuzzy math has one huge problem, like every socialist fantasy tried before it in the history of the world. Eventually, socialism runs out of other people's money, and it fails miserably, as it always has wherever it has been tried before. Redistribution schemes will always fail. 89 million working Americans cannot forever support 110 million (and growing) non working Americans. The money runs out at some point. What then? Look to Europe and the riots in the streets. Their money ran out. Very shortly, California's money is about to run out. Watch what happens out there. Several other states and cities are not far behind California. Rhode Island and Detroit are but two more examples.
588resident
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December 05, 2012
You lost. So stop being a sore loser, most of us have been struggling our entire life we have been giving up a significantly higher percentage of our money in taxes and surviving, than the wealthiest americans. Those wealthiest will not even suffer, unless you are just like the people you chastise (overspending, living above your means, etc) If that's the case, admit you are no better than those you condemn and that you lied about your success. Do your part and help this country.
Libtards
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December 06, 2012
@588resident

Are you another low information voter?
The People!!
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December 05, 2012
The people has spoken!! Get over it!! Get it Done!! Your headline sub-title is way off!! Write the Truth...and not be so blinded by your belief!! The people have spoken!! Get it DONE!!
Great comedy
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December 05, 2012
Joe Kirby still thinks our President is a Muslim although he has absolutely no evidence. If you live in the Fox/MDJ/Talk radio bubble this is what you get. One wonders if the next MDJ editorial will come out against evolution. Anyway this is great comedy if nothing else.
Greater Comedy
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December 06, 2012
Mr Great comedy, stay tuned. The greatest comedy of all time will unfold when the Obama cult followers and other low information voters wake up one day to the reality of what they voted for. har har har
anonymous
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December 05, 2012
"Even if the government was to confiscate everything that wealthy Americans own (as opposed to merely raising their taxes), it would only cover the cost of running the government for a few days." Of course this is totally untrue, the Walton family has 90 billion alone. Do the arithmetic.

CobbCoGuy
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December 06, 2012
GREAT IDEA! Let's do the 6th grade math required for this problem.

The deficit for the fiscal year just ended was $1.1 trillion, and $1.1 trillion divided by $90 billion equals about 12. So, the Waltons could fund the U.S. for about one month.

The article is correct; confiscating all the wealth would get us nowhere; and you need to go back to 6th grade.

Your turn.
Still Untrue
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December 06, 2012
A few days was not a month and one family is not all the wealthy, so yes it is totally untrue.
MDMM
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December 05, 2012
Well, it's good to hear the southern view every now and again. Lord, I do hate the South.
MHSBD
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December 05, 2012
Second.
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