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Tuesday, January 1, 2013

Opposition

I am Delighted that the House at least in part disapproves of the Senate bill, which gives Obama almost everything he wants and delays real tax cuts which he doesn't, meaning that that might just happen again. Yes, there are some good things in the Senate version like the Farm Bill and "doc-fix," which are necessary. Other things add additional spending such as the extension of what has already been 99 weeks of unemployment(!). The tax cut extension I do not view as a bad thing, but it is deceptive: payroll taxes go back up on everyone, which will make a difference to the tune of an average 3% loss of income to the middle American, but only 1% of the wealthy, because payroll taxes only apply to the first $110k of income. Weird rule! Rich people (Congressmen) protect themselves and their buddies, evidently.

No surprise. Just like the media congratulating Obama on a deal that hasn't become reality is no surprise.

Here's something to make the debate more understandable as we talk about tax cuts. I saw this in a comment section here.
RE-Post from~shoe_maker
 Fiscal Cliff in laymen's terms:

Lesson #1:
U.S. Tax revenue: $2,170,000,000,000
Federal Budget: $3,820,000,000,000
New Debt: $1,650,000,000,000
National Debt: $14,271,000,000,000
Recent Budget Cuts: $38,500,000,000

Now, let's remove 8 zeros & pretend it's a household budget:

Annual Family Income: $21,700
Money family spent: $38,200
New Debt on credit card: $16,500
Outstanding Credit Balance: $142,710
Total budget cuts so far: $38.50

Lesson #2
The Debt Ceiling in laymen's terms:

Let's say you come home from work and find there has been a sewer backup in your neighborhood.....
your home has sewage all the way to your ceilings....
What should you do?
Raise the ceiling?
OR
Remove the crap

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