Back in October, I wrote the following Post about the so-called “Fiscal Cliff”, https://thetruthoncommonsense.com/?s=The+Fiscal+Cliff. The on-going Back-and-Forth in Congress has been going on for several years. How many times are we going to hear of the hollow threats to shut the US Government down. Now, if we just shut Congress down, perhaps we might see “smooth sailing”.
Lately, however, there have been a number of references to the Gloom and Doom that would be caused; so, I wanted to bring the Fiscal Cliff back to the front burner. Speaker John Boehner has spoken about working with President Obama, however, Senate Minority Leader Mitch McConnell seems to not have learned his lesson about working to make Obama a One-Term President. So, how much can we expect Congress to accomplish between Thanksgiving and the Christmas Holidays?
Right now, I believe that the Republicans feel that they would, indeed, suffer the political backlash if something is not accomplished, with regard to the Budget Impasse. A year or so ago, the President offered $10.00 of Spending Cuts for every $1.00 of Tax Cuts. Republicans didn’t like that. The President had heard from his Constituency that that is not the way to go.
Besides the Political Fall-Out, the GOP doesn’t want to see any cuts in the Defense Budget–even though across-the-board Cuts had been agreed to. In previous Posts, I have written about the apparent Symbiosis, in Washington, between the Pentagon, Defense Industry and Congress. So, Congress doesn’t want to offend their Defense Lobbyists.
So, as the linked Post (above) notes, there might be some volatility if the Fiscal Cliff does occur. However, at that time, once the Bush Tax Cuts have been wiped-out, the Congressmen who signed Grover Norquist’s Tax-Pledge (not to raise taxes) would be free to lower tax rates. That’s because, once taxes go up, they can lower them for the Middle Class. That’s a Hell of a way to run an Airline.