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Posts Tagged ‘fiscal cliff’

Having endorsed Romney, it’s not how we would have liked to see the outcome of the election.  So where are we now?  Exactly where we were 2 months before the election.  It’s the same President, same House of Representatives, same Senate, so no change.  We need to look “Forward”.

We still have high unemployment and no visible sign of material improvement. Our government is still spending $1 Trillion more per year than we have in our tax income bank account. Our debt is at $16.2 Trillion and will be at $20 Trillion by 2016, our entitlements will not be sustainable when we reach 2030.  Our average take home pay is now $4,000 less.  Our healthcare, while it has helped those with pre-existing condition and closed some loopholes, is still a government tax and will cost tax payers more money for goods and services in the coming 4 years.  Our country inflation is climbing.  Iran is still chasing for a nuclear bomb and Israel is still at risk.  The middle east is under turmoil and we are still at risk in the west from jihad terrorists.

So let’s speculate and try to move the discussion “forward” in some sort of order.  The first domino coming is the Fiscal Cliff.  If nothing is done, and that’s a high probability (see article on Harry Reid) all tax cuts will revert to prior to Bush era and there will be mandatory cut in Defense and various other areas within the government (excluding Social Security, Federal Benefits and Veterans Benefits).  So is going back to Clinton era taxes bad?  No. But the difference is, the economy is a mess and the resulting tax burden will hit all income levels and those hardest hit in the last four years, middle income will be the most devastated moving more into poverty and government dependency.  This will result in a continued, if not worsening housing market, our unemployment will not get better and in fact may rise, but let’s say there is no improvement at a minimum.

Onto government cuts and the second domino to fall, a nuclear Iran.  Can we sustain military and other government cuts? Yes.  It’s impact is uncertain, except if we look at history the USA has never had period where we weren’t at some sort of war or military engagement.  But we will still have military dominance.  As discussed during the Presidential debates, the time is coming when Iran may successfully produced a nuclear weapon. We have such high potential to either be in a military engagement, or watch our Israel friends go it along.  Beyond the military, the cuts also means more unemployment or a third domino, remember those that WARN Act requirements for January by the military suppliers?  While one can conclude that they don’t have to give the WARN notice, because this is a situation beyond “their control”, it’s still a high probability. The probability of layoffs in other government sectors is also a high possibility (of course they could cut something else?).

Deficit and debt reduction.  We have seen no plan. None, nada, zilch.  So, the forth domino is a continued downgrade in our credit rating, inability to get reasonable rate loans or worse we are called to pay back our debt as the credit falls.  This lack of control of fiscal management means we have the potential for further economic collapse, further recession.  Our dollar will continue to fall, inflation will rise and the middle class will be further decimated.

The fifth domino, our population will fall into a further level of dependency, welfare, unemployment and food stamps. They will need it!  But where will the money come from?  Higher taxes.  There will be continued rise in taxing the rich and anyone whom makes any money, to pay for these social programs.

Wow, this sounds bad.  Because it is!    We need jobs to raise government revenue.  One working is one less on government dependency.  It has the potential to double the reduction on the deficit if a citizen whom is dependent on a government assistance is now a tax paying citizen.  We remove the pay out and bring in the tax income.  It’s a win/win.  I don’t see any plan to increase jobs.  I see plans in increase taxes, I see plans to secure entitlements, but jobs?

©RepublicUnited 2012

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How many of us could go to work for over 3 years and fail to deliver on your basic job requirements and not get fired? Well that’s exactly what we have with Senator Harry Reid.  On October 29, 2012 it will have been 3.5 years or 1277 days without a budget.

So how does the government work then without a budget?  It’s simple, they are operating on the budget which was put in place from 2009. This is when Nancy Pelosi controlled the House. That budget was passed by the Senate, Harry Reid, and signed by the President Barack Obama. That budget which is the highest budget we have ever seen, this annual budget is what the country is running on for the past 3 years. Is it any wonder we are overspending?

HOWEVER, since 2009, the House of Representatives have passed several budgets and sent to the Senate which have been not voted on by Senate Majority Leader Harry Reid.  We need to demand a change.  Harry Reid has sworn to uphold and defend the constitution and all laws.  Yet he has been derelict of duty for over 3 years.   Where is the leadership in Washington?  Our own President has shown ZERO leadership.  Why?

Well both Harry Reid and Barack Obama are fundamentally ok with running the government with the 2009 budget, simply put, it’s large enough to do what they want.

Looking ahead to the end of the year is the Fiscal Cliff.  Why hasn’t the President or Harry Reid as leaders of the government stepped up and are trying to prevent this?  Well simply put, both will blame the Republicans.   They are ok with having all the increases in taxes, after all it gives them even more money to spend.  As long as they can blame the Republicans, they’ll keep spending.

It’s clearly time for a change.  In addition to having a change in the Presidency, we need a change in the leadership in the Senate.   Let’s hope we get some real change in 2013!

©RepublicUnited 2012

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