15 Billion in Spending Cuts for 620 Billion in Tax Hikes

The real fiscal cliff is coming and it’s going to be a lot deeper and steeper than this. Even with the tax hikes, Federal spending remains completely and utterly unsustainable, the national debt is even more unsustainable and the entire package is a ticking time bomb.

Republican leaders in Congress had never shown any great communications skills and were demoralized by election defeats to put up much of a fight. They were too afraid of becoming unpopular to take a stand, even though their backs were up against a wall and there was nothing more to lose. This doesn’t augur well for the coming battle on the 2nd Amendment.

And so the deal is that the same tax money that people don’t have and spend money that you don’t have broken machine keeps on grinding along.

According to the Congressional Budget Office, the last-minute fiscal cliff deal reached by congressional leaders and President Barack Obama cuts only $15 billion in spending while increasing tax revenues by $620 billion—a 41:1 ratio of tax increases to spending cuts.

Republicans leaders have backed off an opposition to taxes and a concern for holding down the deficit, further watering down the party’s positions.

The 600 billion in new taxes won’t really plug the gap, but it will give everyone more play money to play with until the real fiscal cliff comes. More importantly it will undermine the Republican base while tossing some red meat to the Democratic base, which was the real goal all along.

Senator McConnell even echoed 99 percenter rhetoric, saying, “The President wanted tax increases, but thanks to this imperfect agreement, 99% of my constituents won’t be hit by those hikes.” That may be a poor choice of words, but it also shows how the left’s rhetoric has been absorbed into the political considerations of the Republican Party. It means that the premises of class warfare have largely been accepted.

and reading the bill was, as usual, not necessary.

  • Thomas Wells

    Short of money? No problem-print more.



  • slider 96

    The present agreement [for lack of a better word ] is simply a stop gap to prevent milk from spiking and tax increases for the middle class . The REAL deal has not yet been made .So te ratio quoted is unrealistic , as far as anything other than temporary.
    The first offer was 850 billion in spending cuts and 1.2 trillion in revenues , that's is a difference of 70 billion .Somewhere in between those figures is where a compromise will be reached .

    • FPF

      If 850 B is to be cut and 1200 B is to be taken in, it will be a 2050 B plus (i.e. 2.05 T reduction in deficit), not 70 B difference. But it is just an illusion the politicians provided to deceive average people. Those who know the real inside are already pocketing whatever they can get and ready for the jump off.

  • Mary Sue

    Weimar Republic, here you come?

  • slider 96

    There is simply no way out with out BOTH Spending cuts & Revenue increases . Anyone who thinks otherwise is deluding themselves . I think the ratio will not exceed 60/40 If there's no deal before the 113th Congress is sworn in , they will have to start all over again . Republicans will most assuredly be blamed , they kicked to the Senate , it passed noow the house is dragging its feet . There will be a mditerm massacre for the Republican party.As it stands at the moment , this indecision will wreak havoc on the markets . These overpaid bums better get their acts together .