All the articles focus on the massive tax increases with the fiscal cliff

[magical thyme]

as a reason for President Obama to supposedly be in a weak bargaining position.

Don't forget it comes packaged with massive cuts to the GOP darling: the MIC.

There's no rush. Don't forget to remind the rethugs in your life that if they don't start making some serious concessions and compromise -- especially on increasing taxes on those who have benefited the most from all our labor -- soon not only will their taxes go up, defense spending will be slashed.

Just sayin'

[Swede Atlanta]

1. The tax implications and the budget cuts are two totally different things.....

If I look at the tax rates (I keep my tax returns and the tax schedules well beyond the required statutory period) that were in place in 1999 and then what they were after the Bush tax cuts went into effect, for a person in my income bracket, the tax cut was negligible. I think the net effect was about 2%.

Granted if the temporary social security tax cut also expires I will be paying something like 3% more than I did last year.

That is not MASSIVE. I suspect, however, that the upper-income earners that received a proportionally much larger Bush tax cut could see a more significant tax increase.

So the term "massive" depends on your income level.

I don't disagree that we should find a way to avoid having the mandatory spending cuts trigger on 01 January. These cuts will be devastating to education and other programs that actually help people.

[magical thyme]

2. but the cuts are cumulative. a few weeks or months

will not bring the economy or education to its knees. But holding strong against the republicans can bring long-term improvement in the situation. And the MIC may well put a lot of pressure on the GOP in particular to compromise...

It's worth tightening the belt and being stoic for a few weeks if it means a significant change in position for the long term.

I'm so low income right now that any tax increase will be pretty irrelevant. And if I get the part time job I'm in contention for, then my income will go up regardless.