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Already I am hearing and reading from the MSM that favorite red herring: The largest tax increase in American history! That tired old meme makes me want to barf.

I am going to rename the "fiscal cliff", Y2K12, that hysterical non-event in the late nineties when computers, software and digital devices would fail to roll from 1999 to 2000 and reign chaos upon the globe. I thought of the little boy who cried wolf when my Pentium I and digital clocks all read Jan 1, 2000 when I went downstairs to get a bowl of Rice Crispies that next morning. Billions of dollars in sales of patches and Y2K compatible devices had saved the planet from digital collapse and mass hysteria. Whew, I was relieved. I remember telling my partner Johnnie, "What a load of BS from the media"

However we are now confronted with a greater threat than Muslims and computers that can't count... The looming Y2K12 event (and the end of the Mayan calendar).

Terror, fear and propaganda have no bounds! The rich will have to pay more in income and capital gains tax, so the end of the world is definitely at hand... again.

Some thoughts below the orange ganja bud.

A great resource for specifics is found at Tax Policy Center. org
It's a good read for wonks.

CBPPpublicdebt
President Obama has proposed extending the Bush-era tax cuts for all but the highest-income households and Republicans want to extend the cuts for everyone. As you can see from the above chart, we cannot afford to extend the tax cuts for everyone. And those who make less than $250,000/yr will not pay more. 125 Million tax units.

25,000,000 tax units above $250,000/yr income will pay more.

His proposal to tax incomes above $250,000 was key to his campaign and support from the grassroots voters who voted for him. The Republicans are holding the lowest and poorest Americans hostage in this situation.

CCI11092012_0000

From Reuters:

 

 While uncertainty over the fiscal cliff dominates most conversations, the relative strength of the underlying U.S. economy should not be forgotten. The expansion is today on firmer footing today than at any point in the past three to four years. No major economic imbalance exists. Moreover, headwinds that have hindered the pace of recovery are fading.

    The bottom line is that the US economy may be better positioned to withstand greater fiscal drag than many currently believe. While going over the so-called fiscal cliff (in its entirety) would almost certainly lead to a sharp contraction in economic activity in early 2013, the improving economic base we now observe leads us to conclude that such a downturn would likely be short-lived.

Don't be afraid one bit of Taxarmageddon. We are going to add $400-500 million to the 2013 Federal balance sheet next year. If we go through a slight economic dip, we'll come roaring back and millionaires and billionaires will barely notice that they are paying Clinton era tax rates. By the end of Obama's termit is projected that the deficit will reduce 1 trillion dollars more sans recovery.

Our 16 trillion dollar economy is resilient and I plan to celebrate January 1st with a bowl of snap, crackle, pop.

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Comment Preferences

  •  We need to help the media do it's job (4+ / 0-)

    It's time to dispel this notion that raising taxes on rich people is somehow going to crash the economy or destroy jobs. It's nonsense!

    Tax cuts for rich people has nothing to do with jobs, in fact after more than a decade of tax cuts for rich people the jobs market has only broken even from the 2006 collapse. There is just no proof that raising taxes is going to hurt anyone, but there is proof that it can reduce our deficit. If Republicans are truly serious about reducing our deficit than they are going to have to consider raising taxes on rich people.

    After all is said and done, a lot more is said than done.

    by Brahman Colorado on Fri Nov 09, 2012 at 10:55:03 PM PST

    •  Calling for deficit reduction is a lot like (2+ / 0-)
      Recommended by:
      Chi, Brahman Colorado

      the king in "Amadeus" telling Mozart his composition has "too many notes."
      Where did the king get that idea? From the jealous court composer who was out to ruin his rival. Whom are the Capitol Hill Gang out to ruin? The American electorate, whom they seek to rule, rather than serve. The re-election of a chief executive who claims to serve, rather than reign, has made them more cantankerous than ever. Incompetents make poor servants because they not only resent being told what to do, they don't know how. Just look at Boehner. He doesn't even know how to organize the House.

      We organize governments to provide benefits and prevent abuse.

      by hannah on Sat Nov 10, 2012 at 03:21:09 AM PST

      [ Parent ]

  •  Someone say ganja? ;-] (4+ / 0-)

    End Bush tax cuts.
    Legalize marijuana.
    and BAM!
    Major surplus.
    Happier people.
    Win-win.

    "It strikes me as gruesome and comical that in our culture we have an expectation that a man can always solve his problems" - Kurt Vonnegut

    by jazzence on Fri Nov 09, 2012 at 11:09:49 PM PST

  •  There is no fiscal cliff. (2+ / 0-)
    Recommended by:
    Chi, Brahman Colorado

    There was actually a significant even in the calendar, a figment of the human imagination that is based on natural, measurable events occurring in the universe. In other words, there was a basis in fact for the year 2000 concerns, whether all the clocks would be right.

    The so-called "fiscal cliff" is a scam. there's no point in renaming it. This scam is similar to the Y2K kerfuffle in that it is also a figment of the imagination. It differs in that there is no basis in fact. Money is a figment of the imagination. We can make as much of it as we like. Or rather, our agents of government make it at our behest because we have found it useful to have our obligations to each other officially recognized and guaranteed. In that sense, the dollar is like a marriage certificate. A marriage is a mutual commitment that exists, regardless of whether it is formally recognized and registered (something the opponents of gay marriage don't understand), and we give preference to those that are registered because they are, presumably, more constant. Also, it helps everyone to know who is committed to looking out for whom. Using official currency to record and keep track of our obligations (what we owe other people and they owe us) is useful, especially when the owners and owners are at some distance from each other. However, like our marriage certificates, the dollars in which our obligations are denominated are worthless.
    Where we have a problem is that some people refuse to accept that the certificates of obligation, whether for lifetime support or a day's labor are themselves worthless and that, regardless of whether the certificates/dollars exist, the obligations persist. We have an obligation, as a community, to care for our elders, regardless of whether we use dollars to track that care. Reducing the availability of dollars does not reduce the obligation to provide care. Though that's what people who don't know how to provide care apparently prefer to think. "If we take away dollars for health care, we won't have to worry about providing it."
    Where we have a problem is on Capitol Hill, where the people we have tasked with managing the currency have apparently decided that the currency should be used to manage us. The people we have elected as stewards have decided to perceive themselves as rulers and to teach us that, if we don't like the austerity they have devised, that's just tough.
    To be on the safe side, the Capitol Hill Gang have actually devised a somewhat plausible excuse for why there is not enough money at hand.  They have jiggled the laws to make money flow into Wall Street and be dammed. All those hedge funds and trust accounts and debentures and notes serve to sop up the cash and sequester it from public use, just as surely as if gold were still being stored up in Fort Knox. So, even as the Treasury is sending more and more money out, the rate at which it circulates has been slowed to a crawl or a trickle and some of us see hardly any at all. The effect of which is to make the whole economy, all our trade and exchange over some distance less efficient.

    In Greece, it is estimated that the shadow economy (trade and exchange the government can't track) has grown to the equivalent of 40% of their GDP. Nobody knows the extent of the shadow economy in the US, but every young adult that goes back to the parental home to live represents rent that doesn't get paid and elder-support that doesn't show up in the national accounts either. You see, getting people hooked on money can also be reversed.
    Do the people on Capitol Hill engineering the fiscal scam understand that?  Not likely. They probably think "no pay, no go," that whatever is unpaid doesn't happen. They mistake the symbol of a transaction for the real thing, the measuring stick for the thing measured. And it's not entirely their fault. Economists have taught them that. Mistaking the form for the function, the idea for the thing is a common mistake.

    We organize governments to provide benefits and prevent abuse.

    by hannah on Sat Nov 10, 2012 at 03:10:45 AM PST

  •  It is a fiscal curb. When you step off just watch (1+ / 0-)
    Recommended by:
    Chi

    out for oncoming traffic. The best thing is that after all the tax cuts go away Congress gets to enact new tax cuts.  Even Grover Norquist will be happy (He is called Grover but sounds like Elmo).  Repubs will again try to hold middle class cuts hostage to repeating the Bush era super cuts for the super rich. But except for the remaining true tea baggers they should see that even in many of the most gerrymandered districts the race was close and that in a digital media world, two years to election is not long enough for a pissed off middle class to forget you screwed them.
    And please stop saying Y2K was only a media scare. Thousands of IT pros coded their hearts out to make it a non-issue. You guys must vote to take down the Dangerous Curve highway signs because no one has run off the road since they've been up.

    I'd tip you but they cut off my tip box. The TSA would put Moses, Jesus, and Muhammad on the no-fly list.

    by OHdog on Sat Nov 10, 2012 at 04:38:27 AM PST

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