Avoiding Fiscal Cliff
by Alfred Regnery
Issue 211– September 12, 2012
After three and a half years of pure Keynesian economics – temporary tax relief, massive bailouts and stimulus programs, mind-boggling deficits – (following eight years of out of control spending), all the Obama- Geithner-Reid Axis can consider are more “targeted” tax cuts, i.e. soaking the rich to jolt the economy rather than a reasoned, long term policy of spending cuts and across-the-board tax cuts.
Ideologues cannot accept the fact they may be wrong – and if there ever was an ideologue in charge we have one now. So in the event that Mr. Obama is returned to office in November, who should be surprised that we will face economic Armageddon.
In the early 1980′s, Ronald Reagan warned us that Keynes was wrong and that his theories were a failure. Reagan’s huge 1981 tax cut, coupled with across-the-board spending cuts resulted in one of the greatest economic expansions in history. Let’s hope that the supply-side lesson of the 1980s resonates with a new administration in Washington.
Here’s what conservatives are saying this week.
“There’s an old humorous expression that goes, “Never do today what you can put off until tomorrow.” Unfortunately, in Washington it’s not a joke – it’s federal policy.
Over the past three and half years, our national debt has exploded as a result of trillion-dollar-plus deficits each year. Now, with our debt approaching $16 trillion – $5.3 trillion more than when President Obama entered the White House – it is abundantly clear that our government has a veritable fiscal crisis on its hands. But instead of trying to solve these problems, President Obama and the Democratic majority in the Senate have chosen to continuously kick the can down the road.
Last week, the crisis got worse. On Wednesday, the CBO reported that the American economy will go into a recession in the first half of 2013 if the 2000 and 2003 tax cuts are not extended.
Yet the Democratic majority refuses to take the necessary action or even introduce a viable plan to avert the coming catastrophe. Consider: the Democrat-controlled Senate hasn’t passed a budget since 2009. And Sen. Patty Murray (D – Wash.) actually supports Congress doing nothing and taking the American economy and American families over the fiscal cliff. This kind of attitude is a complete abdication of Congress’s governing responsibility. It is time for Congress to put politics aside, extend the current tax rates to help grow our economy and start rolling back the president’s bloated spending programs.”
Sen. Pat Toomey
“The CBO’s report that the President’s plan to impose higher taxes on job creators will drive our economy into a recession in 2013 is the latest evidence that we are careening toward a fiscal cliff. We are also headed for a steep “regulatory cliff” as several multibillion-dollar regulations that have been postponed are set to go into effect after the November election, further hindering job creation across the nation. Rather than ignoring these dire warnings, Democrats and Republicans should work together before the election to make sure our fragile economy is not saddled with these devastating tax increases and additional Washington red tape at year end.”
Sen. Rob Portman
“The report from CBO is troubling. Is predicts that if Congress does not act to prevent the so-called ‘fiscal cliff’, the country will revert back into a recession and unemployment could jump as high as 9% again. Despite this and other warnings, some Senate Democrats have recklessly threatened to let the country drive off the fiscal cliff as a political strategy to raise taxes on hardworking Americans. I hope others in their caucus are more responsible and join with Republicans in Congress to protect the economy, extend current tax rates, and make the kind of immediate spending reforms that will help reduce the deficit and balance the budget.”
Sen. Mike Lee
“Years after the democrats’ “Summer of Recovery” the economy is still stagnant and the latest CBO report points that it is getting worse. It is because of the policies of the Obama administration that the economy is where it is. The fact that the Obama administration is more willing to talk about Joe Biden’s gaffes or Fast and Furious is further proof that they do not have a valid plan to fix the economy. It seems their only plan is to try to instill fear, uncertainty and doubt about the actual plan that Mitt Romney has proposed and hope that this negative campaign will garner them enough votes for four more years.
Amy Kremer, Chairman, TeaPartyExpress.org
“The Wizard of O: The Jobless President Obama will do anything and say anything to deflect attention from his dismal record on the economy. But the numbers don’t lie –the Congressional Budget Office (CBO) projects that unemployment will hit 9.1% in 2013 – and there will be another Obama recession. The Department of Labor weekly jobless figures showed that an additional 4,000 workers filed first-time claims for unemployment benefits for the second week in a row. 5.59 million Americans now receive unemployment benefits. All this shows that the trillions of deficit spending has failed to put Americans back to work – instead money’s been used to expand the welfare rolls and drive up the national debt to historic proportions.
Former Indiana Congressman David M. McIntosh
“The CBO confirms that a severe contraction of our economy may be inevitable because this President and this Senate have cynically chosen to buy votes with trillions of dollars of borrowed money instead of acting responsibly to save the nation from clear and present economic danger. At the very moment when Europe’s sovereign debt crisis should have been teaching us the foolishness of irresponsible spending, Barack Obama, Nancy Pelosi and Harry Reid rammed ObamaCare through Congress over the objections of a majority of Americans. Promised to reduce healthcare spending, this new entitlement program has accelerated such costs. Frightening new levels of debt and new taxes and penalties on the middle class, businesses and economic activity are not medicine for the nation but poison.
Ken Hoagland, chairman, Restore America’s Voice Foundation
Obama broke the economy. Then ran over it with a red steamroller. Then backed up and did it again. Obama’s plan is working. Unfortunately, this is his plan. It isn’t ours.
Seton Motley, president, Less Government
Alfred S Regnery heads The Paul Revere Project.