Partisan fight over "fiscal cliff" will harm U.S. economy: Reuters poll

Comments (2)
jrj906202 wrote:

So much worry that govt will act responsibly and reduce the deficit.Not likely they will do that.The real worry should be that the Dollar will collapse.Then this fiscal cliff will look like nothing.

Nov 12, 2012 11:09am EST  --  Report as abuse
jaham wrote:

Obama’s plan to tax the rich is a farce:

The centerpiece of President Obama’s plan is to raise taxes on the rich (households making $250.000 or more). The only problem with this “solution” is that it is dishonest. President Obama likes to give the impression that his plan to tax the rich can significantly reduce the deficit, a claim which is false and which Obama knows is false.

Everybody knows that the rich have a lot of money, so it may appear reasonable to non-economists that taking some this wealth can fill the hole in the budget. What the public doesn’t know, and what President Obama will not tell them, is that there are just too few rich people in America for this plan to work.

According to the CBO, over the next 10 years the Obama budget will produce a deficit of $10.900 billion, or 5.3% of GDP on average. (cbo(dot)gov/publication/22061)

According to the left’s own calculations, Obama’s plan to raise taxes on the rich will generate $700 billion in additional revenue over the next decade, or just a pathetic 0.3% of GDP. (cbpp(dot)org/files/1-31-07tax.pdf)

In other words, the plan to raise taxes on the rich will only cover one out of fifteen dollars of deficit spending. Where is President Obama going to get the other fourteen out of fifteen?

To the $10.9 trillion in deficits we need to add the unfunded liabilities of Medicare and Social Security. According to the Trustees of these programs, the unfounded liabilities are a staggering $52 trillion. (cga(dot)ct(dot)gov/2010/rpt/2010-R-0197.htm)

Again, any honest economist who knows the facts can tell you that a measly $70 billion in revenue per year from the rich will not come close to cover America’s fiscal hole of at least $63000 billion dollars.

Nov 12, 2012 12:16pm EST  --  Report as abuse
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