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View Diary: Obama McConnell and Boehner Meet on The Fiscal Cliff! Literally! (13 comments)

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  •  I don't think that's completely true. (3+ / 0-)
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    eyesoars, Pluto, ArizonaLiberal

    The President is in a very strong position but "all the cards" overstates it a bit. The President has to work out a deal that lets the Speaker bring his caucus along with him. I actually think that the solution lies in - this may break your heart - not raising marginal rates for those over 250K but nevertheless changing the tax code to eliminate sufficient subsidies and loopholes to achieve the same thing. That could include a whole raft of desirable measure such as eliminating the social security cap, etc.

    For if there is a sin against life, it consists perhaps not so much in despairing of life as in hoping for another life and in eluding the implacable grandeur of this life. - Albert Camus

    by Anne Elk on Sun Nov 11, 2012 at 11:33:33 AM PST

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    •  In a gridlocked congress (3+ / 0-)

      ...(which this is until I see otherwise) I don't think it is possible to produce a reformed tax code boosting the tax amounts paid by the highest earners. Although I can see how this might be achieved, technically.

      In any event, the tax cuts will expire on Jan 1, 2013. At that time, salaried workers will be taking home a smaller paycheck -- so, as usual, the little people will experience the real suffering of the economy. The folks making a quarter million dollars very likely have hefty reserves and such modest hikes will hardly be felt.

      However, according to the G20, the US tax hike will hurt the global economy, as well (which will hurt US exports, etc.). In a Keynensian sense, one raises taxes when the economy is booming; it is dangerous to do so (as we know historically) during a recession or recovery. The government spending cuts (which is basically cutting direct stimulus and monetary redistribution) will also cause pain here and abroad.

      But, then, life is pain.

      I'm re-evaluating my opinion of government "debt." Uncertain whether it's a particle or a wave.


      A child of five would understand this. Send someone to fetch a child of five. -- Groucho Marx

      by Pluto on Sun Nov 11, 2012 at 12:09:11 PM PST

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    •  I'm ready for him to stand firm (0+ / 0-)

      Let the Bush cuts expire and then demand a middle class cut. And funding for Republican pet projects like our bloated military..

      Maybe one day the Fourth Estate will take their jobs seriously. Or not..

      by Anthony Page aka SecondComing on Sun Nov 11, 2012 at 05:15:23 PM PST

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