• Rush Graphic
GOING OVER THE FISCAL CLIFF
“There is no fiscal cliff! What we’re facing is an obstacle course within
a manufactured crisis that was hastily thrown together in response to
inflated rhetoric about our federal deficit.” — Richard Trumka, AFL-CIO
president, arguing against entitlement cuts two days after meeting with
Obama in the White House, Huffington Post, 11/15/12
“Republicans, led by House Speaker John Boehner, want to scare
Americans into accepting yet another extension of the Bush tax cuts
for the wealthiest 2 percent and deep cuts to Social Security, Medicare,
and Medicaid. So they’ve created a ‘fiscal cliff’ boogeyman.”
— MoveOn.org email, 11/15/12
Amidst all the official talk swirling throughout Washington of a budgetary “grand bargain” between the Parties, Obama’s minions on
the left are marching to another battle
plan altogether. They’re going to the
mattresses to insist that the whole
notion of a fiscal crisis is a GOP plot.
Meanwhile, Obama pretends he’s
$514 BILLION IN TAX
HIKES FOR 2013
Bush-era tax cut: $156B
Payroll tax holiday: $125B
AMT patch: $88B
Obamacare taxes: $36B
ready to sit down at the negotiating table, but his real agenda is to
stick it to Republicans in every way possible. And his union and Soros-funded shock troops have his back, “unrest” at the ready.
Now that the Redistributor-in-Chief is back for a second
term, brace yourselves. As hostages to the most radical Regime in
American history, American taxpayers are about to be flung en
masse off this “fiscal cliff.” Despite the fiscal deniers on the left, it’s
a real crisis: a horrific combination of automatic spending cuts (from
last year’s debt ceiling fight) and “Taxmageddon” — the expiring
tax rates, tax hikes, and Obamacare taxes which will all kick in on
January 1, 2013.
This has the potential to deep-six the economy. And it’s
not as if anyone’s blindsided. Last May the CBO predicted
the fiscal cliff would mean a colossal 3. 9 percent plunge in
GDP growth in 2013, as the forced tax hikes and spending
cuts vacuum $800 billion out of the economy. In “CBO:
FISCAL CLIFF LIKELY TO CAUSE RECESSION,” CNN Money
projects that “inflation-adjusted growth for 2013 would be
just 0.5 percent,” after shrinking by 1. 3 percent in the first
half of the year.
According to the Tax Policy Center, while the taxes
would hit high earners more than lower-income people, we’re
still talking a significant blow for everyone. The lowest 20
percent would get tax rate increases of around 3. 7 percent,
while the top 1 percent would be socked with a 7. 2 percent
increase. Bottom line, this means an average 5 percent tax hike
on 90 percent of Americans — the largest tax increase in U.S.
history (an inconvenient truth the left is desperate to debunk but
is dead-on, as NewsBusters demonstrates).
Job losses from the fiscal cliff will be enormous. CNBC predicts a possible loss of nearly 6 million jobs through 2014. The
CBO predicts an unemployment rate of 9. 1 percent — up from the
current 7. 9 percent — while a recent report by the U.S. National
Association of Manufacturers maintains unemployment will soar
over 11 percent. Here’s how it will roll in 2013 — all downhill:
Expiration of AMT “Patch”
If Congress and the Regime fail to reach agreement by January
1, the alternative minimum tax [AMT] will be the first tax due. AMT
eliminates deductions for medical expenses, dependents, and state
and local taxes. Devised in 1969 to stop “the super-rich from using
credits, deductions, and shelters to avoid taxes altogether,” according to The Washington Post, the AMT was never indexed for inflation.
So it now goes after the four to five million taxpayers with household incomes in the $200,000 to $1 million range.
And it’s about to get much worse. The inflation “patch” that
temporarily kept many middle-class taxpayers from paying the
onerous tax expired in December 2011. The Tax Policy Institute
estimates that 84 percent of married couples with two or more
children with an adjusted gross income [AGI] between $75,000
and $100,000 will pay a “significantly higher” tax bill in 2012.
That translates to 26 million new households paying an average
of $4,000 more in taxes — most of whom have no idea what’s
Total cost to taxpayers: $88 billion, according to the Tax
Foundation. The only solace here is that the hardest hit will be
residents of deep blue states such as New Jersey and Maryland,
who overwhelmingly voted for this.