Let’s clear up a few things. Obama did not lower taxes, he raised them. He did extend the tax cuts that George Bush enacted but he did not lower taxes for anyone. In fact, the taxes he extended were the ones he opposed before he was president. The only thing he did was to raise taxes.
Also, the holiday from 2% of Social Security taxes was allowed to expire so about 77% of income earners will see a decrease in take home pay. To be fair, the cut was temporary and had to end eventually. The funny thing is that many Obama supporters do not understand this and are all upset that their taxes went up. They did not truly go up since they only went back to what they were before the TEMPORARY decrease.
Having written this, Obama is fresh off his claimed victory in the fiscal cliff negotiations. The table was set for this and the outcome was predetermined. The whole thing was theater for the uninformed and allowed each party to sling accusations at each other while getting to the desired outcome.
Republicans were worried about being blamed if everyone’s taxes went up and Democrats were only interested in raising taxes on the alleged wealthy in order to play class warfare. The reality is though, that the only people who lost in the deal are the taxpayers.
Obama left DC and returned to Hawaii to continue his vacation, one that cost taxpayers about 7 MILLION dollars. While he was busy playing golf he threw down the gauntlet and indicated that he would be pushing an extreme liberal agenda including more tax increases, more spending and unconstitutional gun control.
Obama told the GOP that he would not negotiate the debt ceiling and that he wanted it raised. He also said that any cuts would have to be offset with tax increases.
John Boehner gave in and took a lot of heat. He survived a coup attempt and retained the role of Speaker but he must be aware that he has a fractured caucus and that conservatives are not happy.
Mitch McConnell has indicated that there will be no further tax increases and Boehner has stated that he will address the real problem, spending. All of this sounds good but we have seen this movie before. They talk tough but as soon as they run into opposition from the left they cave.
The debt ceiling is rapidly approaching. By Mid February or early March they will, once again, have a credit problem. They will all meet to discuss raising the credit limit once again while ignoring the real problem, spending. There will be tough talk but in the end they will scream that the US can’t default and they will raise the limit. Spending will not be addressed and we will run against the ceiling in the future.
This is a never ending game they play and America is tired of it. We need to get spending under control and the Republicans have only one weapon with which to do that, the debt ceiling. Republicans need to specifically lay out what is to be cut and by how much and that needs to be agreed to before any increase in the debt limit can be allowed.
As far as I am concerned, the debt ceiling should not be raised. They should cut spending to get to where we need to be and they should continue to cut until they balance the budget and begin paying down the debt, period.
That is unlikely to happen with the spineless crowd in DC so spending cuts, immediate ones not the ten year ones, need to be enacted BEFORE the debt limit is increased.
The GOP has this one chance to get it right. If they capitulate and allow the Democrats to abuse them once again then it will be time to replace them with others or to start a new party.
It is time for the GOP to show it has testicular fortitude and stand fast on spending cuts with NO tax increases.
Maybe they can get a new backbone under Obamacare…
Never surrender, never submit.