Economic Collapse 2012 Obama Faces The Fiscal Cliff of Spending Cuts and Tax Hikes

November 16, 2012 6:25 pmViews: 619

Some say it isn't real, some like AFL-CIO Boss Richard Trumpka, union thug extraordinaire, but the so-called fiscal cliff is looming out in front of President Obama as he tries to show some leadership for the first time ever. What do you think the chances of that happening are?

So, what is the fiscal cliff everyone seems to be talking about? Well, the big issue we're talking about here is the expiration of the Bush tax cuts that were supposed to end in 2010 but were extended all the way through 2012 so as not to make the president look bad before the election. I is hard to believe that the Republican leadership agreed to that one.

The deal to extend the Bush tax cuts also included a reduction in the Social Security employee payroll tax which is also set to expire in 2013 as well. But that was another stupid move by republicans to agree to this because while the democrats whined that republicans did not care about the poor working man enough to give them a $20 a week boost in their paycheck, no news organization on the face of the Earth even bothered to mention the fact that this was a tax which directly funded the already bankrupt Social Security program.

It is important to stop here and understand what this is here that the news never covered. How does Social Security get funded? It gets funded by employers and employees both contributing 6.2% before the cut, each out of a paycheck to the SS system that has undefended liabilities to the tune of $8.6 trillion.

Got that? There isn't enough money already in the system to pay for it, it is underfunded by more than $8 trillion and somehow both democrats and republicans agreed to put less funds into a system that's already bankrupt. How smart was that tax cut again? Why would any politician agree to such a stupid tax cut? The only answer to that is of course a payoff for votes.

So what does Obama do to try and avoid this so-called fiscal cliff of tax hikes for everyone? What does he do to offer a balanced approach to this looming problem? He asks for $1.6 trillion in tax hikes over the next 10 years? Instead of just once again extending the Bush era tax cuts, President Obama thinks he going to come to the bargaining table and ask for a tax increase of $1.6 trillion.

That increase is twice as high as the one he asked for last year when the budget negotiations failed. No republican in their right mind is going to agree to that and Obama knows this so you have to ask what the man is planning and what he is setting up Republicans for. This is what President Obama refers to as a balanced approach.

Do you think for a minute if Obama and the democrats actually get that $1.6 trillion tax hikes, they won't spend it lie gambler in Vegas and not reduce spending one dime? You really think they are going to be responsible with that extra money? When has that ever really happened in the modern history of this country?

It looks like we are going off the fiscal cliff folks. What do you think that going to do to the stock market and the economy? Are you prepared?

Related Posts For You: