If America goes off the “fiscal cliff,” the most likely reason is a pledge taken by many Republicans to oppose any increase in taxes.
U.S. Sen. Jeff Sessions, R-Mobile, on Tuesday reiterated he would abide by that pledge, regardless of the consequences.
Many leading Republicans are recognizing the pledge is too simplistic. It does not, for example, permit the elimination of deductions enjoyed by the wealthiest Americans without a corresponding drop in their marginal tax rates. Given the political chicanery that created many of the deductions, this effectively locks in the legalized bribery that is rampant in Washington.
If Republicans cannot make sensible concessions on increasing revenue as a part of the effort to reduce the deficit, the automatic tax increases and spending cuts that take effect Jan. 1 could cause a recession.
Sessions needs to re-think his loyalties.
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The more money we send Washington, the more money they are going to waste.
The U.S. gross domestic product is 16 trillion dollars and is among the highest taxed GDP's in the world. The U.S. debt is 16 trillion, equal to the GDP, i.e. the U.S. has reached the point of insolvency. Taking more money from the private sector will reduce the available capital necessary to generate the desired revenue. Therefore, spending must be trimmed to match revenue and the public sector must release to the private sector sufficient capital as is necessary to produce the desired growth of tax revenue, and, the borrowing must cease. Unless, of course, the Decatur Daily advocates raising the debt ceiling above U.S. GDP - which it soon will, for some sort of "greater good." The editorial will explain that it is a terrible "deal" that Congress concocts, but, that we must all somehow go along.
If America goes off the “fiscal cliff,” the most likely reason is the government is spending more money than they have.
Because Democrats refuse to agree to limit the growth of any program
Well said Otis. But, I'm sorry you waisted the economic lesson on most of these uneducated simpletons.
The best thing that could happen is Plunging right off that cliff. Then the situation will fix itself as riots and the revolution starts in the streets. This country is done. Otis is dead on. Income in = income out or debt results.