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Thursday, December 20, 2012

Plan B?

Speaker the House John Boehner just held a press conference where he said that this evening his caucus would pass a bill that will raise taxes on those making one million dollars or more but no spending cuts.  He called that Plan B, and he said that he was well aware that it's dead-on  arrival when it reaches the Senate.  He said the Republicans had done their part now it's the Senate Democrats and the president to do theirs, or they will be blamed to for our country going over the fiscal cliff.  Who's he listening to?  Is it the same posters who told them that Romney was going to win by a landslide?

The GOP's latest plan would retain the tax rates on dividends, capital gains, and the Estate Tax but would have an Alternative Minimum Tax patch.  It's basically the Bush tax cuts except for those people who make more than a million dollars a year.  They're not asking for tax cuts right now, because they are going to wait so they can use the debt ceiling as a bargaining chip.  That won't work because they will take the full blame if we go over the financial cliff. Honestly, it's better going over the fiscal cliff than to accept Plan B.

The GOP legislators live in their own bubble thinking that their views are shared  by the masses. They are in denial. According to the latest CNN poll “Fifty-three percent of people, including 22 percent of Republicans, said the GOP's views and policies have pushed them beyond the mainstream. The number is up dramatically from previous years. In 2010, fewer than 40 percent thought the party was too extreme.
Democrats were considered to be a "generally mainstream" party by 57 percent in the new poll.

"That's due in part to the fact that the Republican brand is not doing all that well," said <> Keating Holland, CNN's polling director.

Americans also say that they have far more confidence in President Barack Obama than in congressional Republicans, and that Republicans should compromise more in finding bipartisan solutions.

The president ran for two years on the threshold of where people were assured that their taxes would not go up was set at $250,000. Recently, he said that he would consider raising that amount to $400,000 if more revenues were included, and the debt ceiling would be extended to two years. The president even considered calculating the Social Security cost of living adjustments in a different way which mean recipients would see a cut in their benefits.  The president is catching a lot of flak from his more liberal base, but Nancy Pelosi is still is supporting him and recently said that she could bring enough votes to broker a deal.

Some conservative Republican locals believe their own press clippings.  For instance, Raymond Smith said that conservatives wanted smaller government and low taxes whereas Democrats wanted socialism.  Where have we heard that before?  I am enclosing some charts Raymond, and his ilk will never look at nor do they want to. They probably even skip over the articles in the right-wing  blogs like Towhall where John C. Goodman wrote, “So who is to blame for this state of affairs? Lyndon Johnson, of course, gave us Medicare, Medicaid and the rest of the Great Society. But when Johnson left office, these programs were relatively small. The main expansion came under Republican presidents Richard Nixon and Gerald Ford. Not only, that, the expansions were largely the result of executive orders! That is, they didn't have to happen.

The growth of the entitlement state moderated somewhat under presidents Carter, Reagan, and George H.W. Bush. Because of welfare reform under Bill Clinton, there was actually the prospect of some contraction. But during the presidency of George W. Bush, Republicans pushed for a new drug benefit under Medicare with a huge unfunded liability - greater in fact than the unfunded liability under Social Security.”

The Treasury Department and the president have a lot of power at their disposal to keep the costs of going over the fiscal cliff at a minimum so it might be best to call the GOP's bluff. They obviously didn't hear the voices of the elections nor do they care what the polls say, so they may only be one alternative.


born2Bme said...

It's a shame that the GOP equates liberalism with stupidity. They didn't learn a danged thing with this election. The Liberals will not get blamed for going over the cliff, the GOP will still get the blame.
Boehner needs to grow some balls and do what's best for this Country, or face the consequences.
I understand that his job is on the line, but that shouldn't be an issue with something this important.

Mike said...

I broke out laughing when Boehner said " The president has to stand up to his party."...The president has angered his base many times,and the speaker and anyone listening knows it...It is he who won't stand up to his base...He's hen pecked by his own party.

Legion said...

So if nothing gets done will everyone have until 4-15-13 to prepare or will the government printing office be in over drive to print new forms for 2012?

Will the spending cuts go into effect starting 1-1-13, I assume, and the tax increase on 2013 income?

If so, then the cuts start and there is another 12 months to squabble over tax rates.

Mike said...

Some forms won't be ready until March as it is..The IRS already has moved their electronic filing date to Jan.22,2013 for those who file a simple 1040.

We do have that word retroactively.

The IRS has already one set of forms ready to go like the AMT with the fixed patch.

A new congress can wave the magic wand over the sequester cuts but they won't.

Legion said...

So the tax increase is retroactive and applies to 2012 taxes?

The accountants are going to be extra busy if so, not enough was withheld each payday, not enough was paid by employers quarterly, geez...

Mike said...

No,the tax increases will be on your 2013 taxes but Tresury could say tax rates stay the same for three weeks and then apply rules retroactively to Jan 1,2013.

So much for Plan B ,speaker could not get the votes from his own caucus,so they punted.

born2Bme said...

I think they want to go over the cliff and then start from there. President Obama had better stand up for his promises on this one.

Mike said...

I rarely agree with Speaker Boehner, but I got to see what he is up against. It’s like trying to compromise with a rock.

Representative Tim Huelshamp(R-KA) was a guest on Morning Joe to give his reason he voted against Plan B… he said he won’t vote for any tax increase because we have a spending problem. He also said he’s optimistic that a deal will be made. He thinks the Democrats will roll over to his demands. He’s not there for the benefit of the country; he only represents the wishes of his district.

I can’t believe the GOP is so weak and controlled by the NRA that they won’t state their position on the assault weapon and high-capacity ammo clip ban until after the NRA makes an announcement this morning.

Rep. Huelskamp, said the president is politicizing the horrible event in Connecticut to pass gun control measures.

What’s left? John Boehner said he’s through with negotiations so now it’s in the hands of the Senate Democrats and the president. The president can now take back all the goodies he offered Boehner and then tell Boehner to find 25-27 Republicans to vote with the entire democratic caucus to pass his tax cut for those making more than $250,000 and rely on the sequester cuts, which will hurt the Defense Dept. the most.

Mike said...

The GOP just got thier talking points from NRA National Dir. Wayne LaPierre:
1.It's President Obama's fault because he cut some defense spending measures for school in the budget.

2. It's the movie & video game industry fault
3.It's the fault of the mentally ill
4. Schools fault for not arming their faculty
5. No mention of the high capacity ammo clips or assault weapons.

The NRA will fund a National School Safety and Shield school to train those who plant an armed person at every school in America.

The gun manufactures,gun lobbies,gun shows, and survivalists will applaud their efforts.

It's funny how he wants government to pay for arming every school in America but that's not seen as politicizing or spending.