Posted by: maboulette | November 25, 2012


The fiscal cliff is a scam – a way created to force a rollback of Social Security, Medicare, and Medicaid, as the price of avoiding tax increases and troublesome cuts in federal civilian programs and in the military. 

It was policy-making by hostage taking, timed for the lame duck session, a manufactured crisis, the plain idea now unfolding was to force the voice of doom.

First, is there a looming crisis of debt or deficits, such that sacrifices in general are necessary? No, there is not. Not in the short run – as almost everyone agrees. But also: not in the long run. What we have are computer projections, based on random – and in fact unreliable – assumptions. But even the computer projections no longer show much of a crisis.

Second, is there a looming crisis of Social Security, Medicare, and Medicaid, such that these programs must be reformed? No, there is not. Social insurance programs are not businesses. They are not required to make a profit; they need not be funded from any particular stream of tax revenues over any particular time horizon. Reasonable control of health care costs – public and private – is necessary and also sufficient to keep the costs of Medicare and Medicaid within bounds.

Third, would the military sequestration programmed to start in January be a disaster? No, it would not be. Military spending is set to decline – and it should decline as we adjust our military programs to our national security needs. The sequester is at worst harmless; at best it’s an invitation to speed the process of moving away from a Cold War force to one suited to the modern world.

Fourth, would the upper-end tax increases programmed to take effect in January be a disaster? No, they would not be. There is no evidence that the low tax rates on the wealthy encouraged them to spend or invest no evidence that higher tax rates would deter the spending and investment that they might otherwise do. 

Fifth, would the middle-class tax increases, end of unemployment insurance, and the abrupt end of the payroll tax holiday programmed for the end of January risk cutting into the main lines of consumer spending, business profits and economic growth? Yes, over time it would. But, the effects in the first few weeks will be minimal and Congress could act on these matters separately, with a clean bill either before the end of the year or early in the new one. 

Sixth, what about all the other cuts in discretionary federal spending? Yes, some of these would be very damaging if allowed. Simple solution: don’t allow them.

In short, Members of Congress: if you can, just pass the President’s bill on middle-class taxes, and, if you can, eliminate the domestic sequester. Then, please go home. Enjoy the holidays. Come back in January prepared to extend unemployment insurance, to phase out the payroll tax holiday gradually, to restore stable funding to necessary programs, and to start dealing with our real problems: jobs, foreclosures, infrastructure, and climate change.


  1. Please just explain to me how this country can continue to fund all these give away programs that you guys think are “free”? These so called tax increases on the “wealthy” actually pay for the government to run for about a week. The democrats NEVER consider less only, always more and more and more. I get it, you guys won, now tell me how you pay for it. Is the solution to keep printing money as they are doing now? Cut defense back so far that we can no longer defend ourselves against ever aggressive governments such as China, Russia, North Korea, Iran? Keep borrowing money at record pace so to enslave our future generations with more taxes and higher regulations than we even have now? Please…just tell me the plan, honestly and straight forward, I’m a big boy, I can take it. When is enough for you guys to be satisfied? How much of what I make is mine? Does everything now belong to the government to dispose of as they see fit? Is there no longer a Constitution that protects my individual right of private property? If not, what rights are next to be taken away from this leviathan government that keeps growing and growing larger and larger and more oppressive? Can we please at one time have an honest, open debate about where we’re going?

    • Steve – no one is taking your private property – where did you get the idea that the federal government is taking your private property? And if you or anyone else NETS over $250,000 that is nets, then everything over OVER that should go back to the Clinton era tax rate as that is what Congress orginally agreed too. The present tax rate was only suppose to last for 10 years and the go back – it pass time to go back!! So why do you have a problem with that – does it affect you and your millions? Honestly how much money is your monthly income – money you make from working? I thought you told me your were retired in which case none of this would affect you!

      And if you do make over $250,000 – God Bless you – can you help me out?

    • Steve I am not you all – I am not all the Dem! I am not all the liberals I am just me and you need to stop blame me for everything since I am a liberal/progressive!! Not all my thinking goes to the far left – sometimes it just goes down the middle – sometimes I don’t have an opinion on some subjects. There are even times dear friend that I disagree with Obama!

  2. No, i”m not retired, I own a couple of struggling businesses that apparently are going to struggle a little more for a while longer. that is not my point. What I am asking and NO ONE on your side of the argument wants to answer, so I’ll ask it again. How much of what I work for can I consider mine? Is it still mine? I think not, because if MY government,( it’s supposed to protect me too), not just the looters, can comfiscatorily take most of what I work for and give it to someone else who didn’t earn it, just because they exist, then we no longer live in a free country. Please don’t tell me about my obligation to pay my share of taxes, that is NOT what I am saying. What I am saying is I no longer have the right to the fruits of my labor when it is systematically removed from me to redistribute it to someone who is deemed less than I. I don’t understand why you can’t see this. The government does not have the right to redistribute our property. My wages are MY PROPERTY NOT YOURS to do with what you will just because you can out vote me.

    • You are correct – that does seem to be what the government is doing. When it will stop I have no idea – perhaps you need to listen to Alex Jones more, he has plans. But as for the plans of our government – I don’t have a clue.

      • You think that’s what I’m about? Alex Jones? I think I heard like one video out take from Alex Jones in my entire life. What I’m about is personal freedom and responsibility. I can’t stand where this country is going and it’s BOTH parties. Two hundred and thirty six years ago this country was founded on freedom from an oppressive European government, europe is still the land of tyranny and all these people want to scrap the most prosperous nation that has ever existed and turn us into some European Socialist model that NEVER works. Socialism has never worked anywhere it’s been tried. I am not French or German or Swedish….I am an American.! what’s wrong with that?

      • Thats exactly what Alex Jones is all aobut – check him out – seriously you and he feel a lot alike – and he is not just a nobody – he had millions of followers or viewers from all over the world. Have built quite a following in TV, radio and videos. He makes a lot of sense along the lines you are talking about.

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