Shocking Details of Fiscal Cliff Begin to Leak; Another Credit Downgrade Looms

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Michael Lotfi is a Persian, American political analyst and adviser living in Nashville, Tennessee where he works as the executive state director for the Tenth Amendment Center. Lotfi graduated in the top 5% of his class with top honors from Belmont University, an award winning, private university located in Nashville, Tennessee.
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The Fiscal Cliff. There has been much talk about it, but few Americans actually know what it is. In the most simple terms: On December 31st, 2012 a large series of tax cuts were set to expire. If a deal was not met to expand the tax cuts by January 1st, 2013

Paul Ryan and John Boehner

Paul Ryan and John Boehner after the Fiscal Cliff Vote 

then automatic, across the board spending cuts and tax increases would occur. A sufficient deal by Congress should have included, at the very least-moderate cuts in spending and little to no increases on taxes. However, the ‘deal’ we got included:

  • 80% of Americans that make over $40,000/ year will see a tax increase. Beginning immediately, the majority of Americans will see smaller paychecks.
  • Hollywood elites get $430 Million.
  • Puerto Rico and the Virgin Islands get $220 Million for liquor manufacturing.
  • NASCAR gets $70 Million.
  • Algae growers get $59 Million.
  • Obama also insisted that his campaign contributors got massive, record setting tax breaks: Goldman Sachs, Citi, Morgan Stanley, GE, etc. All of them gave billions to his re-election efforts.
  • $1 in Spending cuts for every $41 in raised taxes, a 1:41 ratio.

So, the majority of America will get their taxes raised and their paychecks will continue to shrink. Combine this with runaway inflation from the Federal Reserve pushing QE4, and the average American’s ability to purchase and survive is about to hit a major wall. Meanwhile, Obama bails out his corporate pals who make billions. In fact, the very friends that had enough money to give him billions to get re-elected. If they had the billions of dollars to give to him then why do they need tax breaks? According to Senator Rand Paul (R-KY), no one in Congress even read the bill. Or is that really even shocking? The bill ‘hit the floor’ for the first time at 1:36 AM and was voted on and passed at 1:39 AM. In fact, most aren’t sure there was even a bill printed. Congress was told that the bill was available online at 1:36 AM, but no one actually saw it on paper. Therefore, no one who actually voted on it that morning even read it. Why do we allow our representatives to pass laws that affect us, which they are almost always exempt from, without even reading the legislation? Nevertheless the bill passed the Senate  89:8, and the House 257:167. Former VP Candidate, House Budget Chairman Paul Ryan voted in favor of the bill.

Moody’s has already sent a warning to Congress that the Fiscal Cliff deal did absolutely nothing to solve the Nation’s crisis and is threatening to downgrade America’s credit rating yet again.

Knowing all of this as truth one must ask themselves, if taxes were going to be raised on the majority of Americans anyways, why didn’t we simply just go off the cliff? Had we jumped off the cliff yes taxes would have been raised, but spending would have been cut also. Instead, there are essentially no cuts in spending, massive tax hikes for the average American, and huge corporate tax cuts perpetuating the corporatism culture that the White House and Congress have become so accustomed to. As the old saying goes, sometimes you have to hit rock bottom before you can begin to rebuild. Should we not have just hit rock bottom? Americans have been told by the mass media that a ‘deal’ was struck and we have avoided some monstrosity of a disaster. However, when you actually read between the lines, the cliff seems like a much more suitable alternative to what we have been dealt.

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