More taxes. More spending. No surprises.
Tim Kern taught economics for fifteen years, and discovered...
WASHINGTON, DC, January 2, 2013 ― When Congress engineered the fiscal cliff a year and a half ago in response to its persistant over-spending, the idea was to tie an increase in the debt limit to future budgetary responsibility. Immediate responsibility was out of the question as the campaign season was ramping up.
With the elections finally over, we finally turned our attention to the fiscal cliff. And again, irresponsibility won.
President Obama continues to repeat the convoluted half-truth that the middle class won’t see its tax rates increase, without mentioning that their taxes will rise. His use of language is Clintonesque.
“Taxes on the wealthiest 2 percent” will go up, though income taxes won’t rise on the wealthiest, but only on high-earners. The truly wealthy aren’t affected by income tax hikes. The wealthy will be hit with higher estate taxes when their property, already taxed at every stage of its accumulation, passes to their heirs, but the truly wealthy aren’t affected by this, either: They have trusts to avoid such looting.
Government spending will continue to rise. The very minor cuts that were negotiated will come from baseline budgets, which means that they will represent cuts in spending growth, not actual spending cuts. Algae farms, export subsidies, movie-maker subsidies, rum-maker subsidies, wind and solar, biofuel development are all untouched, or even increased.
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