“The Fiscal Cliff, The Fiscal Cliff” is all everyone (mostly liberal biased media) is talking about. Though they blame the Republicans, the Tea Party, and basically anyone but themselves, the Democrats (the Obama administration) caused this with their failed economic and social policies. Obama’s uncontrolled spending, his executive orders, his failure to cut the debt and by letting it continue to grow, his expansion of the welfare state, and failure to help grow the economy by drilling for oil, creating jobs, and cutting taxes are a major cause for the “fiscal cliff”.
For those of you who don’t understand what the “fiscal cliff” actually is, I’ll explain it.
The “fiscal cliff” refers to the expiration of the current budget and tax rates and the start of the Budget Control Act of 2011. On January 1, 2013, the Bush tax rates will expire, then Obama’s “Affordable Care Act” (aka Obamacare) will kick in and the taxes will rise even more. Federal income tax will rise about 2% on workers. And many government funded programs will have major budget cuts. The most important of these would be defense and Medicare. So the “fiscal cliff” definitely isn’t a good thing.
The “fiscal cliff” could stop economic growth (what little there is) and send the United States back into a recession, possibly a deeper one. There are a couple choices that the Government can do to stop the “fiscal cliff”.
1. They could just stand pat and let the Budget Control Act of 2011 start and let the tax rates expire. This will raise taxes which could hurt the economy and job production but could cut the deficit in half.
2. They could stop some of the spending cuts and tax increases which would raise the debt, but also possibly encourage economic recovery and growth by not increasing taxes on people who make over $250,000 a year.
What Obama and his supporters don’t seem to understand is that these people who make $250,000 or more a year aren’t just “rich” people. They are also small business owners who are going to get killed by these tax hikes, which will stunt their growth (if not totally wipe them out), and limit or entirely destroy job creation. That is not going to help our economy or job growth whatsoever. Another thing that bothers me about Obama’s tax the rich idea is that the rich people create jobs, they own companies, start new ones, invest in companies to help them grow, invest in banks so people can get loans for cars, houses, and new businesses, etc. etc. If Obama taxes the wealthy more, he is going to stop economic recovery and job creation single-handedly.