Lawmakers signal deep "fiscal cliff" deadlock

[Eugene]

Source: Reuters

Lawmakers signal deep "fiscal cliff" deadlock

WASHINGTON | Sun Jul 8, 2012 6:17pm EDT

(Reuters) - Lawmakers signaled on Sunday a worsening deadlock in Congress over how to tackle critical fiscal deadlines looming at year's end, including deciding whether to extend tax cuts for the wealthiest Americans.

A scenario known by economists as the "fiscal cliff" could unfold at the end of the year. Historically low tax rates first enacted under Republican former President George W. Bush in 2001 and 2003 are set to expire at the end of the year if Congress fails to act, as are jobless benefits for the long-term unemployed and a temporary payroll tax cut.

In addition, $1.2 trillion in across-the-board reductions in spending on federal programs would begin to phase in as a result of Congress' failure late last year to find a comprehensive deal to cut the budget deficit.

The United States also is expected to hit the $16.4 trillion statutory limit on its debt sometime between the November 6 U.S. election and the end of the year. If Congress fails to raise it, it would lead to a U.S. default.

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Read more: http://www.reuters.com/article/2012/07/08/us-usa-economy-taxes-idUSBRE8670JS20120708

[mbperrin]

1. Fiscal cliff would be an accountant term, certainly not one an economist would use.

1. We need a 91% or higher tax bracket on incomes over a million dollars. Instead of parking money the way it is now to the tune of $9 trillion or more doing nothing, investments would have to be made to get the deductions. Or pay the tax. Either way, the country is better off than by having passive cash lying around. This is the tax policy of the late 40s and 50s, and it served us well.

2. Jobless benefits definitely need to be extended, and I would encourage everyone, not just those affected, to work against every bastard who lets them not be extended, period. Get a PAC in reverse - sign up millions of registered voters for the express purpose of punishing bad acts by politicians.

3. The payroll tax cut is just a device to weaken Social Security. I well remember when the rates went up to account for the boomers, of which I am one. For 29 of those years, I was self-employed and paid both ends of the tax, or double what wage folks pay. It was worth it, and Social Security is only one of the most successful government programs ever conceived.

Now if the fuckers in Congress cannot do their job, I will get everyone I can praying for their deaths by rabies, scabies, and any other painful disease we can think of. On a practical note, my congressman already won't talk to me any more. I teach in high school, and I ridicule him to my students over it, proving the power of word and thought.