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Tue Dec 18, 2012, 06:26 PM

Once Again America Expects Obama To Clean Up Another Republican Fiscal Mess

http://www.politicususa.com/america-expects-obama-clean-republican-fiscal-mess.html


Once Again America Expects Obama To Clean Up Another Republican Fiscal Mess

By: Rmuse
Dec. 18th, 2012


snip//

The new proposal calls for $1.2 trillion in new revenue that is down from the Presidentís original offer of $1.6 trillion, and second of $1.4 trillion, and should be easier for Boehner to take back to Republicans for moaning and groaning about inflicting pain on so-called job creators, but accept and pass the deal. The new proposal calls for Bush-era rates to remain in place for income under $400,000 annually and is a good counter-offer to Boehnerís call for incomes under $1 million in response to the Presidentís initial proposal of $250,000. Obviously, many Democrats will oppose the lower threshold, but compared to just a year ago, it is nearly unimaginable the prospect of raising taxes on the rich is in the realm of possibility.

In what will be difficult for many in the progressive caucus to swallow is allowing the payroll tax cut passed two years ago to lapse without an apparent replacement, but the Presidentís plan does call for an unemployment benefit extension and funding for infrastructure spending Republicans have obstructed and claim is better spent on more tax breaks for the rich. The one part of the proposal Republicans will have the hardest time swallowing is a demand that the nationís debt limit be raised for two years, and allowance for Congress to periodically vote to not raise the limit, but the deal gives the President veto power over any congressional opposition. The President is well within his right to veto any refusal to raise the debt ceiling because the Constitution clearly says in Section 4 of the Fourteenth Amendment that, ďThe validity of the public debt of the United States, authorized by law, shall not be questioned,Ē and any attempts by Congress to question the debt, or cause a default on the debt is a Constitutional violation. There are some scholars who claim the 14th Amendment only applied to debt incurred during the Civil War, but they are the same adherents who argue for a textualist interpretation that Section 4 clearly meets. Undoubtedly, if the President invoked a Constitutional provision to avert a credit default it would invariably lead to a court battle because this President is an African American Democrat.


Republicans should be comfortable with the level of spending cuts in the Presidentís latest offer because it pairs the level of cuts with revenue increases that, coupled with last yearís debt ceiling standoff of a trillion dollars in spending cuts and those in his latest proposal, amounts to $3.4 trillion in deficit reduction. Adding in savings from winding down the wars exceeds $4 trillion that is closer to the Presidentís initial plan Republicans rejected last year that led to the Super-Committeeís failure and the current fiscal cliff deadline. The GOP could have averted sequestration cuts, the dreaded fiscal cliff, and a credit downgrade if they had accepted the Presidentís $4 trillion balanced approach in 2011, but then again expecting Republicans to work with the President has been a fantasy for four years. In fact, the Presidentís latest offer will reach the same levels of spending cuts and revenue increases he called for last year that sent Republicans into an obstructionist fit the nationís economy, and citizens, have suffered for the past year.

The American people have signaled time and time again that they expect their representatives to compromise to solve the nationís problems, and President Obama has fulfilled his part of the deal since he was elected. His latest fiscal cliff offer is further proof that, despite what Republicans claim, he is willing to make concessions to move the country forward, and follow the will of the people.
President Obama won reelection on the promise of raising taxes on the wealthiest Americans while making hard choices to cut the deficit that does not include gutting Medicare and Social Security. His latest offer will not entirely satisfy many Democrats, but he has put forth an offer that can pass both houses of Congress if Republicans drop their aversion to tax increases for the wealthy and Draconian cuts to Americanís retirement and healthcare accounts.

As of last night, Boehner had not commented on the Presidentís latest offer, but with a deadline looming and legislators panting to be home for the holidays, time is running out for a solution that avoids the fiscal cliff and uncertainty in the markets. John Boehner has an opportunity to show some leadership and corral recalcitrant teabaggersí absurd demand that all deficit reduction comes solely from spending cuts, and if he is either unwilling, or unable, to compromise with the President, then when the deadline passes and the economy reacts negatively, Americans will rightly blame Republicans. It is just unfortunate that Republican obstruction sent the nation to the brink of another fiscal crisis they could have easily avoided if they had accepted the ďgrand bargainĒ the President and Boehner reached over a year ago, and will now probably save the economy from going over the Republican-caused fiscal cliff.

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Reply Once Again America Expects Obama To Clean Up Another Republican Fiscal Mess (Original post)
babylonsister Dec 2012 OP
freshwest Dec 2012 #1
MotherPetrie Dec 2012 #2
babylonsister Dec 2012 #3
forestpath Dec 2012 #4

Response to babylonsister (Original post)

Tue Dec 18, 2012, 06:45 PM

1. Good news, too complicated for those watching the GOP spin..

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Response to babylonsister (Original post)

Tue Dec 18, 2012, 06:46 PM

2. I am an American - and I expect Obama to NOT SCREW people dependant on SS

 

So that tax cuts on people earning $399,999 don't expire!

If that makes me NOT American, then I guess I'm not American after all.

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Response to MotherPetrie (Reply #2)

Tue Dec 18, 2012, 06:48 PM

3. You have no clue how the hell this is

going to turn out; the sky isn't falling despite your dire predictions.


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Response to MotherPetrie (Reply #2)

Tue Dec 18, 2012, 06:56 PM

4. +1

 

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