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How to Approach the ‘Fiscal Cliff’

Home - by - November 28, 2012 - 10:15 America/New_York - 20 Comments

NRO

Keep payroll taxes low and fight for entitlement reform.

James C. Capretta

 

Negotiations between congressional Republicans and the White House will intensify this week as the deadline for steering clear of the year-end “fiscal cliff” approaches. Like the 2011 showdown over the debt limit, these talks will be a high-stakes affair for both parties, with the potential for lasting political effects. With so much at stake, how should the GOP approach the talks? The following are a few suggestions for navigating the treacherous political waters that lie ahead.

Acknowledge the Economic and Policy Risks of Going Over the Cliff.
Tempting as it might be, the GOP should resist minimizing the very real and very likely negative consequences of going over the cliff. It is true that the risks are uncertain. Indeed, it is possible that, despite predictions to the contrary, the U.S. economy would continue to grow modestly, even with $500 billion in immediate tax hikes and spending cuts. And it is also possible that, despite massive cuts in U.S. military spending, there would be no real-world consequences in terms of degraded capacity to defend our interests worldwide.

 

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» 20 Comments

  1. Keith in Seattle

    November 28th, 2012

    You sneak up on Obama and Reid while they’re looking over the edge and PUSH THEM OVER IT!

    Noteworthy Comment Thumb up +12

     
  2. Boobie the Rocket Dog

    November 28th, 2012

    Tell that MF to keep his dirty hands off your clean suit or you’ll show him what short people are made of.

    Thumb up +2

     
  3. old_oaks

    November 28th, 2012

    We need more than ever to go off this cliff.

    SO WHAT, we go into recession.

    Why?

    Because the freaking government stops spending!

    WHAT they fail to realize.

    A solid recession based on SPENDING CUTS will have a MASSIVE up slope once the pain has been truly CURED.

    Thumb up +8

     
  4. old_oaks

    November 28th, 2012

    Here’s why we’ll never go over the cliff.

    “The political fallout would be substantial.”

    Who gives a fuck about political fallout?

    Voters?

    Thumb up +8

     
  5. Menderman

    November 28th, 2012

    I disagree with almost everything Capretta says. First off, the Republicans WILL be blamed for anything negative and Obama WILL get credit for everything positive. Didn’t you watch the news in October Mr. Capretta? Second, you never acknowleged that the tax hikes do absolutely nothing towards the goal of financial stability. Less than $100 Billion in revenge hikes to cover a $1.3 Trillion and growing annual deficit is nothing but politics. And the Payroll taxes? Really? Payroll taxes are intended to directly fund ones own benefits. You put in X and later you get out X plus inflation. Obama used that to lower taxes on people that don’t pay any, and you fell for it? Now, these same people put in X minus 20% and still get X plus inflation later and expect others to pick up the tab. Unless we have real spending cuts this negotiation is nothing but kicking the can down the road for our grandchildren to play with. There are ZERO, ZERO, ZERO spending cuts being offered unless we go over the cliff, and that onl amounts to about $600 billion dollars, or half of 1 years deficit.

    This whole game is designed to fail and have the Republicans take the blame…the leftist MSM has already written the stories just wondering when to air them. If we don’t CUT SPENDING DRAMATICALLY there is no reason to play along! It ain’t about getting invited to the nice cocktail parties for the voters…remember us voters?

    Noteworthy Comment Thumb up +11

     
  6. Edith McCrotch

    November 28th, 2012

    Everything the Royal Revenger touches turns to shit.

    “Take your stinking paws off me, you damn dirty ape!” – George Taylor, Earth 3978 A.D.

    Thumb up +8

     
  7. Xavier

    November 28th, 2012

    Capretta doesn’t know what the fuck he’s talking about. He’s trying to use facts in a MSM controlled environment – a sure sign he doesn’t understand how things work.

    1] The GOP will “compromise”.
    2] Any negative effects will be blamed on Conservatives.
    3] Rinse and repeat.

    Noteworthy Comment Thumb up +10

     
  8. Unruly Refugee

    November 28th, 2012

    Notice that poor bastard doesn’t have a drink in front of him to rinse out the taste of 0bama’s vag. Then check out the look on his face.

    Priceless.

    Thumb up +6

     
  9. Menderman

    November 28th, 2012

    Capretta is a “Visiting Fellow” at The Heritage Foundation…WTF?

    I hope it is a short visit.

    Thumb up +4

     
  10. Da Penguin Asks: Are we there yet

    November 28th, 2012

    so which one of these guys is supposed to be our our side, I cannot get them straight.

    or as Orwell said:

    No question now, what had happened to the faces of the pigs. The creatures outside looked from pig to man, and from man to pig, and from pig to man again; but already it was impossible to say which was which.”

    Thumb up +9

     
  11. Stranded in Sonoma

    November 28th, 2012

    “This is my brother Darrell and this here’s my other brother Darrell.”

    Thumb up +3

     
  12. Menderman

    November 28th, 2012

    I read the article Capretta linked at the NYT. Yeah, great place for Republicans to seek political advice, right?

    Basically the dude is saying “just do away with the payroll tax, we all know it is a ruse anyway”. Really? It isn’t a savings account like Roosevelt promised? So since we were lied to, just make it a tax and move on leaving the entitlement intact? I suppose we should do the same with Obamacare now? Open sociallism is now the path to Conservative victories?

    OK, you two brilliant pundents, explain to me why a 2% tax cut for the poor is instumental in saving our economy? When you finnish, apply that same logic 1,000 fold for tax cuts for the rest of the country…you know, they ones that actually pay taxes?

    Either tax cuts stimulate the economy or they don’t…you can’t have it both ways.

    Thumb up +2

     
  13. serfer62

    November 28th, 2012

    Obama proudly introduces another member of his reelection team!

    Thumb up +3

     
  14. Barry O.

    November 28th, 2012

    “This is my little buddy, Johnny Boehner. Say ‘hello’ to the folks out there in the audience, Johnny! Wait a sec, let me get my hand up the backside…there we go, now say ‘Hi’ to folks Johnny.”

    Thumb up +2

     
  15. MNHawk

    November 28th, 2012

    Bring it on. The bigger cliff waits if we don’t. Don’t like massive tax hikes? Then the piglets in this country better rethink just how much government they want. Last time I looked, 51% voted for $3.8 trillion in largess and rising.

    It’s time to show the United Piglets of America just how much it costs to fund their “free” s**t.

    Bring on the cliff. Then triple it.

    Thumb up +3

     
  16. Joe

    November 28th, 2012

    Little Johnny Boehner looks like he has a boner.

    Thumb up 0

     
  17. MaryfromMarin

    November 28th, 2012

    Going over the fiscal cliff sounds good right now. (Can’t wait for it to happen to CA.)

    If politicians don’t realize the consequences of their decisions and actions, they will just carry on being egomaniacal lunatics.

    If voters don’t realize the consequences of their decisions and actions, they will just carry on being self-centered pigs demanding free stuff.

    No recovery is possible until both those lessons are learned, the hard way.

    Thumb up +2

     
  18. Tim

    November 28th, 2012

    We’re over it. Geithner said two years ago that there’s nothing anyone can do to stop it. The debt will take on a life of its own as soon as these criminals raise the “debt ceiling” again and destroy our credit rating once and for all. My guess is that they’ll attempt some sort of inflationary scheme – but that’ll fail, too.

    Socialism ALWAYS leads to penury and death on a continental scale. Better get some goats and chickens.

    Thumb up +2

     
  19. What - Me Worry?

    November 28th, 2012

    O.K. In this example Boehner is the sheep, and Obama is the shepherd.

    Now for shepherds to get the best f*ck out of a sheep they take them up on the precipice, and then the shepherd gets the sheep right on the edge, and sticks his tallywacker in that place where men should never go with a sheep. As the passion of the shepherd mounts, the sheep, fearing for it’s life, will frantically try to back up, repeatedly on the shepherds unit.

    This little explanation about Obama’s fiscal cliff strategy, is an illustration of what Obama is doing to Boehner, and the other RINO incompetents in the Congress. The more passionate Obama becomes in his desire to scr*w the American people, the more Boehner backs up giving Obama the ride of his life.

    So far in all matters fiscal Boehner, and McConnel have some how yelled, and screamed about how they were not going to cave to Obama’s demands, but Obama always comes away from the negotiations with more than he asked for, and he never gives a d*mn thing the RINOs pretend they want.

    This fractured fairy tale brought to you by the number sixteen trillion (and counting).

    Thumb up 0

     
  20. Snowball the Sourpuss

    November 29th, 2012

    Jesus Christ, is that pantywaste crying?!!

    Thumb up 0