Why Congressional Republicans Should Go Over Fiscal Cliff

There has been some talk within some talking head shows about the Congressional Republicans and President Obama, and talking about the Fiscal Cliff. Within this talk it has been brought up that President Obama has the upper hand when it comes to talks on the Fiscal Cliff.

The first reason why the Republicans should not be concerned with what President Obama has to say on the Fiscal Cliff is that the President has no authority over fiscal matters. Only Congress has that authority. Thus, Congressional Republicans should just ignore the President on these matters since the President is talking about doing things in which he has no authority to do it. Congress “creates” and passes the laws, and President either signs them into law or veto’s them. President is not involved in creating these laws at all.

The second reason why the Republicans should not be concerned with what President Obama has to say on the Fiscal Cliff is that President Obama talked about going back people being treated equal, having the same laws apply to them, and have the same shoot. The Republicans can point out that in order to be consistent with these things that President Obama ran on is to go over the Fiscal Cliff. Going over the Fiscal Cliff will make it so that all citizens are affected equally instead of only part of citizens being affected and others not being affected. This would prevent people being treated equally and this would limit people having the same shot.

The third reason why the Republicans should not be concerned with what President Obama has to say on the Fiscal Cliff is that President Obama talked about going back to the Clinton economic policies. So the Republicans should point out that the bush Tax cuts were based on lowering the tax rates of all Americans by lowering them from what Clinton had them. So point out that in order for President Obama to say anything about Clinton economic times and policy, it would be necessary to get rid of the Bush Tax Cuts that applied to all Americans. This would mean going over the Fiscal Cliff.

The fourth reason why the Republicans should not be concerned with what President Obama has to say on the Fiscal Cliff is that Congressional Republicans were elected by their constituents, which can either be a district for the House of Representatives or a state for the Senate, and this implies that they support their position on this issue (unless majority of constituents say otherwise). They are elected Representatives, and they do not have to worry about how other people in other states think, or other districts, but only the people they are sent to Washington to represent them before the nation.

The fifth reason why the Republicans should not be concerned with what President Obama has to say on the Fiscal Cliff is a mix of the second reason,  third reason, and fourth reason. This is based on how President Obama supposedly has a “Mandate” from the American people. The Congressional Republicans may point out that they have a “Mandate” from their own constituents like the President does as well. The Congressional Republicans may point out that President Obama’s “Mandate” is about people being treated equally, and people would not be treated equally if one group of Americans have their tax rate raised while another group does not have their tax rate raised as well. The Congressional Republicans may point out that President Obama’s “Mandate” is to go back to the economic policies of Clinton and not George W. Bush, so get rid of the Bush Tax Cuts, which means going back to the tax rate under the Clinton Administration which means going over the Fiscal Cliff.

Where Half of Obama’s National Debt Came From

There was a  Presidential debate between Mitt Romeny and Barack Obama on October 3rd, 2012. This was the first Presidential debate between Mitt Romney and Barack Obama. Now what is interesting about this was not so much the debate itself, but some commentary on the debate. For example, PBS discussed and commented on some of the statements that the candidates made, and did some “fact checking”. Mark Shields happened to bring up one of the most interesting points of them all. The point they made was that half of the national debt incurred under Obama’s 1st term was based on pulling out of Iraq.

Now I want you to realize this, around 3 trillion dollars of around 6 trillions of national debt incurred under Obama’s first term. Under 2 terms of George W. Bush, around 4 trillion dollars were incurred on to the national debt. Now Bush lead the US into an undeclared war with both Afghanistan and Iraq, and Congress approved to continue to fund this undeclared war. And when this undeclared war was said to be officially over, US troops occupied those nations. These nations continued to be occupied up to the 2008 Presidential Election. Barack Obama said that he would bring the occupation troops in Iraq back home within 16 months of his election as President. By 2011 the last troops were pulled out, but don’t mind the huge embassy. But he did flip-flop on promises of when pull out would be done of occupation troops in Iraq. (They are literally military troops occupying land in a foreign nation.)

One of the big points made against Bush was that he used the national “credit card” to pay for the “Wars” in Iraq and Afghanistan. He used the credit cards to get us into these occupations of foreign nations, and the debt rose by 4 trillion in 8 years of Bush doing this, or 7 years at least. But Obama would use the national credit cards to pull out of Iraq alone, which costs nearly half of the debt incurred by using the credit card under Obama’s watch. Just think about that when you realize that the troops are back from occupying foreign lands, instead of being stationed at home with their families and community and defending the continental boarders and US owned land.

Point blank: Promised to get out by a certain date and does not pull out by that certain date, but also being ambiguous on when it will happen until it happens after it contradicts some earlier states. Raised the national debt more than his predecessor, while at the same time obtaining half of it pulling out of Iraq.

But let us be fare to Mr. Bush and Mr. Obama. They can only order where the troops go and when they come back. But Congress controls the revenue and distribution of the revenue. So the people using the national credit card where Congress. Just ignore that last important part and enjoy the hypocrisy of 21st politics.

I Haven’t Raised Taxes

Here is an interesting article based on President Obama’s interview on 60 Minutes.

“On CBS News’s “60 Minutes” Sunday night, President Obama said, “Taxes are lower on families than they’ve been probably in the last 50 years. So I haven’t raised taxes.”

As of Monday morning, neither the Washington Post’s Pinocchio-awarding Fact-Checker, nor the Annenberg Public Policy Center’sFactCheck.org, nor the Tampa Bay Times’ Pulitzer-Prize-winning Politifact.com had risen to this opportunity, so let us take a stab.

There are a variety of possible ways to measure the tax burden on American “families” over the past 50 years. Fortunately, Mr. Obama’s own White House Office of Management and Budget provides a spreadsheet that summarizes federal tax receipts from 1940 through the present. Fifty years ago, in 1962, federal tax receipts were $99.7 billion. In 2011, they were $2.3 trillion. Far from being at a 50 year low, the taxes extracted from American families last year were about 23 times what they were fifty years ago.

Okay, but aren’t there more families in America now than there were 50 years ago? Sure. The 1960 Census counted about 179 million Americans, while the 2010 Census counted about 309 million. The population hasn’t even doubled, but the federal government’s tax receipts have increased 23 times.

Okay, but what about inflation? President Obama’s own Office of Management and Budget tries to deal with that question by using something called “constant (FY 2005) dollars.” It’s not as trustworthy a measure as, say, the price of gold, but since the White House uses it, it’s worth at least a look. By this measure, federal taxes climbed to nearly $2 trillion in 2011 from about $660 billion in 1962. In other words, the taxes trebled, even as the population didn’t even double.

Remember, too, that 1962 wasn’t some kind of blissful Jeffersonian small-government era to which we can never possibly return. It was the height of the Cold War. President Eisenhower had only shortly before warned of the military-industrial complex. President Kennedy was going around giving speeches about how the tax burden was too high.

Okay, what about tax rates? By that measure, taxes aren’t at a 50-year-low, either. Don’t take my word for it: look at the chart from the Tax Policy Center operated by the Brookings Institution and the Urban Institute, two center-left think tanks whose work President Obama likes to cite when he claims that a President Romney would raise taxes on the middle class. Sure enough, in 1988 and 1989 the top marginal income tax rate was 28%. In 1990, 1991, and 1992 it was 31%. Today it is 35%.

Okay, that’s the federal income tax rate. But what about the payroll tax rate? Here, too the Brookings-Urban Tax Policy Center has a useful chart. In 1962 the Social Security payroll tax was 6.25%, applied to the first $4,800 in wages. There was no Medicare tax, because Medicare did not yet exist. In 2011 — even after the two percentage point temporary payroll tax “holiday” — the tax was 10.4% applied to the first $106,800 in income, plus a 2.9% Medicare tax that applies to all wage income, with no cap. The tax, in other words, has more than doubled since 1962.

How about the federal gas tax? Fifty years ago, in 1962, it was four cents a gallon, according to the Tax Foundation. It’s now 18.4 cents a gallon. Far from being at a 50-year low, it has more than quadrupled.

There is one measure — federal tax revenues as a percentage of GDP — by which taxes under President Obama have been at a 50-year low, at least according to the Office of Management and Budget. But if that’s Mr. Obama’s yardstick, then it also shows government spending and budget deficits have been at 50-year highs under Mr. Obama.

The second sentence of Mr. Obama’s “60 Minutes” claim — “I haven’t raised taxes” — is similarly slippery. Before Mr. Obama had been in office for a month he signed a law increasing the tobacco tax by $71 billion over 10 years. A 10% tax on tanning salons went into effect on July 1, 2010, a tax increase of $2.7 billion over 10 years. If Mr. Obama hasn’t raised more taxes, it hasn’t been for lack of trying; the only thing stopping him has been the Republican House of Representatives.

It would be a shame if voters fall for Mr. Obama’s misleading claim that their taxes are at a 50-year low. But who can blame the voters, or, for that matter, the fact-checkers, if even Mr. Obama’s opponent, Mitt Romney, buys into the idea. In the same “60 Minutes” program, Mr. Romney said taxes would remain essentially unchanged if he won. “I don’t want a reduction in revenue coming into the government,” Mr. Romney said.

It’s enough to make one nostalgic for George W. Bush, or at least to prompt one to wish for a politician who can articulate the tax issue not in terms of what it means for the government’s revenues but in the language of what it means for the individual.”