With all of the hype and bluster about the wealthy paying “their fair share” coming out the Democrats you would think that tax hikes were the be all and end all of future economic success. If ALL of President Obama’s proposed tax hikes were implemented they would amount to about .5% of the total yearly national debt. Even really stretching and assuming that those tax hikes don’t further cripple a struggling economy, those tax hikes will have a negligible impact on the U.S. economy.
The only meaningful progress that can be made to reduce the deficit, reduce the national debt and even start to approach fiscal responsibility is through measures to reduce spending. This is not some big secret, everyone in both parties knows this. Neither party will do anything meaningful during these negotiations to avoid the “fiscal cliff.” Without major reductions in medicare, welfare and other entitlement programs, no real progress can be made to avoid piling on to already crippling national debt. I don’t think that either party has the resolve to make real change.
Evidently bowed by the loss of the Presidential election, it looks like the House Republicans are either intimidated or bowed into submission and it looks like the Democrats are more than willing to play a game of chicken with out national economy. Democrats are milking the virtually irrelevant tax hikes for all they are worth banking that their war on wealth will continue to resonate with the American people. Further Democrats seem willing to risk going over a fiscal cliff that all experts universally agree will send the country into a deeper depression because they are convinced that they can sell the public that it is the Republican “obstructionism” and not Democratic stupidity that drove the country over the cliff. Unfortunately this is a political play with real and lasting consequences and we have no one but ourselves to blame because we are the ones that put these weak and selfish folks into office.