Go For the Dive, GOP

Danger, Will Robinson! There is a fiscal cliff ahead!

Only thing we have to fear is fear itself.

~ FDR’s First Inaugural Address

Congress has kicked the proverbial can down the road so many times that it’s time for them to kick it again only to postpone what they have created – the fast, approaching fiscal cliff.

Pamela Seley is a contributor to The Brenner Brief. Her weekly columns post on Wednesdays.

Pamela Seley is a contributor to The Brenner Brief. Her weekly columns post on Wednesdays.

It may seem that the main focus is whether to extend the Bush tax cuts that were initiated in 2001. Democrats want  to extend the Bush tax cuts, and also want the rich to pay more taxes. Neither side seems to want to cut spending, but if no deal is reached by the year’s end, a $600 billion mix of tax increases and automatic spending cuts begin in January.

There are dissenters in both parties emerging in favor of a fiscal cliff dive.

Sen. Jim DeMint (R-SC) was quoted as saying of Obama and the Democrats: “It’s been hyped to a level to create a crisis so that there will be widespread panic at the end of the year when they come out with their proposal.” This is an insightful statement of the Democrats who never want to let a good crisis go to waste — scare everyone that if Congress does nothing the economy will go into recession.

No one really knows what will happen. Sen. Patty Murray (D-WA) said if that if GOP refuses to raise taxes on high-earners they will push the debate to 2013. What is striking is that both sides knew the time was coming yet they wait until the last possible minute to negotiate. To create fear to come to a hasty deal may not be what is in the best interests of Americans.

If the GOP capitulates to the Democrats’ demands, they will be blamed for raising taxes. The GOP will never live it down and will have to deal with that legacy. Remember how Obama blamed Bush for the “mess” he inherited? Whatever comes out of this debacle, let Obama and his team get stuck holding the package. That’s why it is important for the GOP, in my opinion, not to flinch, but to remain fearless and go for the dive, if necessary.

Our income taxes are considered a “progressive tax.”

The top 10% of taxpayers earning the highest incomes pay 70% of federal income taxes. What the Democrats want are for the top earners to continue to pay at a higher rate, which they already do — but they want more. A Huffington Post article debunks what they call “the myths” of taxing high income earners and ultimately suggest anyone who disagrees is arrogant and greedy.

It’s probably racist to suggest that lower-income earners are greedy when they expect to be given the earned income credit for not having earned enough money. Oh, the irony and hypocrisy of the Democrats! Tax the rich and give to poor – redistribution of wealth is socialism, but they will never openly call it what it is.

Remember Obama said “everyone must pay their fair share.” What he means is those who can’t earn their fair share must be given a fair share. Letting the Bush tax cuts expire and taxing the top two percent is not going to solve the problem — there is not enough tax revenue to pay for government.

Perhaps the GOP could put together a commission to investigate “big, bloated Obama government” and find those agencies and the wasted money before taxing the rich and taking away entitlements for the poor. The issue is that government is not seen as the problem. Of course, it’s an oxymoron that Congress doesn’t recognize that they are the problem, either. Let’s not forget who voted “yes” for Obamacare.

What we really need are more jobs — 28 million Americans are unemployed. As Warren Buffet claims in a recent New York Times piece, “in recent years, my gang has been leaving the middle class in the dust.” How nice of you to admit that, Mr. Buffet. Then he offers up what Congress should do, displaying his ignorance on deficits.

It seems Congress and Obama are only tinkering with the taxing and spending model of the post-war era that has failed to deliver long-term stability and full employment. We are seeing Keynesian economics in practice. The logical next step would be a job guarantee program. However, it’s doubtful the Obama team could pull off something as sophisticated as a job guarantee program, given their amateurish performance on Benghazi.

The GOP should throw caution to the wind and take the dive.

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