01.12.2013
‘Fiscal Cliff’ Deal Adds $4 Trillion to the Deficit
original article written by Net Advisor™
WASHINGTON DC. The Fiscal Cliff talks in late 2012 amounted to exactly what I expected. Higher taxes, more debt, FED printing money, and no fiscal responsibility in Washington DC. The ‘Fiscal Cliff’ deal apparently needed to include special interest tax breaks for Hollywood filmmakers, and other groups? The U.S. Senate took at the most 3 minuets to read the bill before they voted on it. Let’s take a look at what they voted for.
[1] “Fiscal Cliff” News Fissiles Out in the Press – Nothing Really Solved
We heard nearly 24 hrs a day about the “Fiscal Cliff” which was discussed mostly AFTER the November presidential election. EVERYONE working – is subject to higher taxes now. With new taxes on those making more than $400,000 and new taxes on those making any amount from a payroll check, the result works out to be $62 Billion a year in new government revenue for the next 10 years (Source: Atlantic Wire PDF – highlight added).
[2] Senate Speed Readers?
Reports said that U.S. Senate had 3 minutes to read the 154-page bill (written almost entirely in italic font) before they voted on it. President Obama signed the Bill and is now law (Source: CSPAN, PDF).
[3] Fiscal Cliff Deal to Add $4 Trillion to the Deficit
To help with the math, we point out that the non-partisan Congressional Budget Office (CBO) analysis concluded that the ‘Fiscal Cliff’ deal alone will add about $4 Trillion to the deficit over the next 10 years (Source: CBO, PDF). Never mind that the Obama Administration has been running an average of $1.5 Trillion in new debt every year, so $62 Billion obvious solved the Fiscal Cliff crisis.
[4] Obama Deficit to Exceed $6 Trillion in 4 Years
The Obama Administration took the United States into debt by over $6 Trillion in the last four years, and the U.S. will hit a new debt ceiling in February 2013. Almost all but maybe three weeks of this $6 Trillion debt occurred BEFORE adding the entire Fiscal Cliff $4 Trillion debt.
The Fiscal Cliff deficit occurs over 10 years, so future President’s will have the opportunity to blame Obama for stuff he did when he was in office, as Obama did to Bush.
[5] “Debt Ceiling” Debate May Add $1 Trillion of New Debt This Year
We are probably looking at another $1 Trillion or so of new U.S. government debt in 2013. The U.S. gov may hedge that blow by raising the debt ceiling by a lesser amount, only to raise it again later this year. This would be nothing but a spin by the Obama Administration so Americans won’t realize how much debt the government is actually racking up.
[6] Obama’s “Balanced Approach” Reality:
$1 in Spending Cuts, for every $41 New Taxes and Spending
President Obama discussed that we needed a “balanced approach” that would raises taxes on the “wealthiest” Americans and have some spending cuts.
The result of this “balanced approach” was anything but balanced. The Fiscal Cliff deal looks like this: For every $1 in spending cuts there are $41 in new taxes and spending (Source: Breitbart PDF). The result of this is $40 in net new taxes and spending. This doesn’t sound very balanced at all. In fact, the Middle-Class taxpayer will feel the pinch of higher taxes immediately.
Perhaps the President should have told us his plan was a “Lopsided Approach” which is more accurate. It could have also been called the “Middle-Class Tax Increase” which would also be true. However, if he did that it just wouldn’t look good politically. So instead, we weigh a dinosaur verses a dog and tell everyone POTUS has a “Balanced Approach.” Then we get Team Obama to paint a picture to the media by telling us that this “balanced approach” will only affect the “Wealthiest Americans.” Please email Washington for your free Unicorn. A customary cup of Kool-Aid is of course included and required.
[7] Taxpayers Subsidize Hollywood, NASCAR, Green Energy & Alcohol
The Fiscal Cliff deal also includes $76 Billion of taxpayer money for special interest groups including $12.1 Billion just for wind-energy; additional green energy tax-credits, a tax benefit for NASCAR, and a $430 Million thank you from the November 2012 election for Hollywood movie makers. Hollywood filmmakers will be allowed expense films made in the USA – saving them $430 Million. Clearly, Hollywood just doesn’t make enough money on their movies, and the actors are clearly underpaid, so we need taxpayers to insure they get a special tax break.
If that wasn’t enough, taxpayers can wallow in government debt knowing that Puerto Rico and the Virgin Islands will get a special $222 Million (PDF) tax break exclusively for Rum producers.
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