[Rushtalk] The fiscal cliff: Another phony emergency to give the government more power

Carl Spitzer Winblows at lavabit.com
Sun Dec 9 11:53:58 MST 2012



"This whole phony crisis is about exactly that: raising taxes. With an
approval rating at subterranean levels, the government wants the people
to support tax hikes while continuing the gravy train for government
employees and special interests."

The fiscal cliff: Another phony emergency to give the government more
power
Tuesday, November 27, 2012 
by Thomas Mullen

TAMPA, November 27, 2012 ­ The 24-hour news cycle is dominated with
frantic warnings about the “fiscal cliff.” If you merely listen to the
sound bites, there is another “emergency” facing the United States of
America and only some drastic action by Congress can avert it.

What nonsense. Don’t Americans ever learn anything from even the recent
past?

Just four years ago, we were told that if we didn’t allow Congress to
give Wall Street almost a trillion dollars of our money, the end of the
world would occur. The “bold” legislation was necessary to “save the
financial system.” Other than preventing a lot of billionaires who made
bad investments from losing their money, I’m not sure what that was
supposed to mean.

It didn’t prevent millions of borrowers from losing their homes. That
happened anyway.

We were told after 911 that “the world changed” and the 4th, 5th and 6th
amendments to the Constitution would have to be trashed. Americans now
subject themselves to unreasonable searches without warrant merely for
the “privilege” of getting on a plane. They allow presidents to arrest
American citizens without a warrant or charges and hold them
indefinitely without recourse to a writ of habeas corpus.

The president can even kill American citizens without due process.

It was all supposedly necessary to protect us from … the shoe bomber and
the underwear bomber. Both defeated the new government security
apparatus and were subdued by private citizens.

Both initiatives were accompanied by a non-stop barrage of media
propaganda trumpeting impending doom if the government wasn’t given more
power.

The fiscal cliff scam is playing out exactly the same way. Day and
night, Americans are bombarded with the same message. If Congress
doesn’t do something, the world will end.

There are two components to this supposed disaster. The first is the
“draconian cuts” to government spending built into the Budget Control
Act of 2011. Supposedly, they will “gut the military,” while plunging
the economy back into recession.

There is only one problem. Even if Congress fails to make a deal,
nothing is being cut from the federal budget.

Let me repeat that. Nothing is being cut.

What the government is calling “spending cuts” are actually decreases to
future increases in spending. This starts with the concept of “baseline
budgeting.” The government assumes that spending in each area will
automatically rise by a certain percentage every year. All of the cuts
triggered by the fiscal cliff are to spending increases, not to this
year’s spending.

That means that if Federal Program A is budgeted for $1 billion in 2012
and projected to go up to $1.1 billion in 2013, a “$50 million cut” to
Program A won’t result in the program spending less than $1 billion in
2013. It will spend more. Spending on Program A will go up $50 million,
from $1 billion to $1.05 billion. It just won’t increase as much as the
government previously projected it to.

With a defense budget that is already larger than the next 20
industrialized nations combined, we’re supposed to believe that we’ll be
in some sort of danger if defense spending increases less than the
military industrial complex wants it to.

As for the bizarre form of Keynesianism that says that an economic
disaster will occur if the government increases domestic spending less
during a supposed recovery, even Lord Keynes himself might object.

So what is this all about?

Along with the phony cuts to spending, the fiscal cliff triggers sunset
of the Bush tax cuts and an end to the payroll tax “holiday.” That means
that the tax rate on the top earners moves from 35% back to 39% and all
Americans will have to resume paying the full tax rates for Social
Security and Medicare that still don’t underwrite future liabilities.

Now, some might argue that any tax increase during tough economic times
is harmful. Therein lies the rub. This whole phony crisis is about
exactly that: raising taxes. With an approval rating at subterranean
levels, the government wants the people to support tax hikes while
continuing the gravy train for government employees and special
interests.

Logic dictates that this is the only result that can occur. If the
fiscal cliff actually represents federal spending increasing less, and
that’s supposed to be “draconian,” then any deal made by Congress must
increase federal spending more. So, anything the Republicans and
Democrats agree to will be worse than the fiscal cliff in terms of
spending.

As for taxes, the only debate currently underway is whether the
Republicans will agree to overt tax increases. They’ve already stated
that they are open to eliminating deductions. That’s a tax increase. The
Democrats want to eliminate deductions and raise rates. Either way,
taxes are going up. Anything the Republicans and Democrats agree to will
be worse than the fiscal cliff in terms of tax increases.

You can see where this is heading. Sometime before January 1, some
gargantuan bill will be forced through to avert the phony disaster. It
will contain larger increases to both federal spending and taxes than
the fiscal cliff represents, along with the additional pork needed to
get the holdout votes. There will likely be further loss of basic
liberties buried in it somewhere as well. And leaders from both parties
will wave it around in triumph as a “bipartisan solution.”

When will Americans ever learn?

Read more: The fiscal cliff: Another phony emergency to give the
government more power | Washington Times Communities 


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-- 
ObombA did not win erection, Trotskite RINO Mitt Romney threw the
election.  -- Rush Limbaugh
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