We have all been reading about the “Fiscal Cliff” that we may, as a nation, fall over as of January 1, 2013. On that date the Bush-era tax cuts will expire and large reductions in defense spending and other programs will become automatic. There are other consequences too but these are the chief ones.
On the matter of the extension of tax cuts, Democrats and Republicans are deadlocked over what to do to resolve this scenario so nothing is really happening now, nor likely to happen until after the election. At that point it will be in the hands of a lame-duck Congress with about six weeks to solve this problem.
In general, Senate Democrats and President Obama want to extend the Bush tax cuts for everyone except those with incomes over $250,000. They say this will raise some revenue. House Republicans say that exempting those with incomes over $250,000 amounts to a tax increase for them. So how to resolve this?
Senator Patty Murray, Democrat from Washington State suggested that this could be resolved by a two-part political sleight of hand to which both parties would agree. She suggested that Part 1 would be to allow the tax cuts to expire in January as they are scheduled to do. The effect of letting them expire would be to set tax rates back to what they were in 2003 before the temporary tax cuts were put in place. This would mean higher taxes for all. Part B would immediately follow – that is, the current tax cuts would be reinstated thus decreasing the taxes that were just allowed to be increased. Why would such a political maneuver be seriously suggested? The answer is GroverNordquist.
Mr. Nordquist is the President of the non-profit Americans for Tax Reform. He is a conservative activist committed to reducing taxes. To that end he has developed and promoted the Taxpayer Protection Pledge which some 95% of all Republican Senators and Representatives signed by late 2011. 238 House Republicans and 47 Republican Senators have signed this pledge. It calls for deficit reduction without any increase in taxes.
Having signed this pledge, there is no way for Republican legislators to agree to any tax increases without going back on their word. There appears, however, to be some rethinking among some Republicans about whether such a strict line in the sand is a good idea given the current economic conditions. Senator Murray’s proposal, as ridiculous as it is, is really just a way to release Republicans from their Nordquist pledge.
What is really ridiculous, however, is that a non-elected, not well-known individual has tied the United States Congress in knots to point where no action can be taken without violating some pledge made to him. Don’t we expect our Senators and Representatives to evaluate events and come to individual decisions? How did Grover Nordquist get such influence over our representatives?
People vote. They want benefits, not taxes. Ah, there's the rub.
Bad plan? Yeah! Really bad plan, yet Grover thinks it will work.
I don't think it'll work because the "American Dream" is stronger than a desperate politician. Even those far from rich believe in this fundamental possibility ... given the right moxie. Those with less moxie would look for government apron strings. This is broad, but I think it's accurate. This is gonna be an odd campaign in many ways. Just hope we cure ourselves when it's done. Because we need curing.
What is really interesting is that the collapse of the US economy that we are still experiencing began with the Democratic takeover of both Houses of Congress in 2006. The new Congress began in January 2007, by December we were in recession. It must be a coincidence that the recession started right after the Deocratic takeover because I didn't read about it in the New York Times or the Washington Post.
If Mr. Nordquist gets his wish and shrinks government to the size that you could fit it into a bathtub then God help our nation. To those who agree with his rationale you better be careful you don't get what you wish. Jeff Meyer Tuckahoe, NY
"It's class warfare, my class is winning, but they shouldn't be." - Warren Buffet Aidan, I'm not ranting and neither is the president. Every dollar cut from the taxes of the rich comes out of the budget that covers us all. The entire rhetoric and logic of the Club for Growth (and Norquist)(and, these days, most of the Republican Party) states that Federal taxes are out of control and Romney is pushing for even more radical cuts on taxes on the wealthy. That is class warfare. Those cuts in income come at the expense of benefits for the middle and lower classes. And we are, and remain, the richest country on the planet. The richest 1% have become ludicrously rich - and they truly really don't need to pay less taxes. They're already clearly incentivized to become and stay filthy rich (word is used advisedly) so there is no reason to cut taxes further - none.
(Hint: Nixon).