Wednesday, December 12, 2012

The Fiscal Cliff

The House Republicans have worked themselves into quite a precarious situation. As it stands now, they are facing a lose lose situation.  It could be the death of their party.  Let's examine the possibilities:

1. If they agree with Obama, they lose a lot of credibility and a lot of Republicans will be left feeling alienated.

2. If they disagree with Obama and we go off the fiscal cliff, which was Bush's original plan, the very first bill that the Democrats should offer up is a bill to lower taxes back to todays level for those making less than $250,000 and reinstate the deductions the middle class currently enjoy.  Any congressman who votes against a bill which lowers taxes for 98% of his constituents is sure to lose their seat during the next election.  Even more so, the Democratic party will also become known as the party who wants to lower taxes and the Republican party will be cast as the party who wanted to keep taxes high.

3. Those making over $250,000 are looking at a lose lose situation either way.  Under Bush's plan, which was suppose to sunset 2 years ago, their taxes are going up.  If we go with the Democrats plan their taxes are going up. The thinking could very well be...."If my taxes are going up, let everybodies taxes go up too."

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