Fiscal cliff: What you need to know
May 16th, 2012
02:18 PM ET
3 years ago

Fiscal cliff: What you need to know

New York (CNNMoney) - On Tuesday, House Speaker John Boehner all but promised an ugly fight over the debt ceiling this year unless GOP demands for spending cuts are met.

Sound familiar? The GOP took the same tact last year, leading eventually to an epic Washington fight that led to a first-ever U.S. credit downgrade and a major disruption in global markets.

FULL STORY

Filed under: Budget • Congress
soundoff (35 Responses)
  1. Anonymous

    "THis is the biggest load of crap. The GOP trying to reduce our deficit didn't lead to the downgrade and financial disruption – out debt did and the out of control spending. In order to prevent the downgrade, they needed to cut more than they did, but the dems would not let them"

    Well, at least that first sentence is correct, if applied to the rest of your words. The GOBP flat-out refused to raise the debt ceiling to approve ITS OWN SPENDING FROM THE BUSH ERA! Full stop. You have no defense; and the GOBP cult has no defense. They ran up the bill; and then tried to run out of the restaurant without paying. "Fiscal responsibility" is a phrase they love to shout, yet never follow.

    May 16, 2012 03:29 pm at 3:29 pm |
  2. Governor 47th in Job Growth

    googleman

    THis is the biggest load of crap. The GOP trying to reduce our deficit didn't lead to the downgrade and financial disruption – out debt did and the out of control spending. In order to prevent the downgrade, they needed to cut more than they did, but the dems would not let them
    ----------------------------------------------–
    Here's what S&P said after the move to downgrade our credit:
    The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy.

    And:

    Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues

    The fact is that the rating agency most assuredly placed blame on a party, and it wasn't the Democratic party. Once again, to have a serious debate on the issue, you must look at both sides of the ledger and that includes revenues, not just cuts. One party has broken an Oath of Office and signed a pledge to some fool named Grover.
    Tea Party downgrade. One more fact: Boehner said he got 98% of what he wanted. (8/1/11). He too shall get 98% of the blame for the downgrade. Game. Set. Match.

    May 16, 2012 03:31 pm at 3:31 pm |
  3. demwit

    Its just monopoly money.., print more.., no worries.

    May 16, 2012 03:34 pm at 3:34 pm |
  4. FLIndependent

    I never see any polls that determine what Boehner's job approval is...why not? It's probably in the negatives! He has to be the worst, least effective, and weakest Speaker we've ever had. He bows to his Tea Party masters and blames everything on the President when it's his job to get his House to move on legislation. I'm so tired on their antics and also those who are brainwashed by all the debt rhetoric. I know the debt is a big problem but why wasn't it ever discussed during the Bush years? Why suddenly when Obama took office it became the #1 issue? President Obama has tried and is still trying to work with these idiots to move the country forward and also cut the deficit for the long term but it won't work when they've signed pledges not to raise taxes and will only cut programs that support the 99% of us. I've had it with these Repubs/Tea Partiers and their disgusting tactics!! Obama 2012 and hopefully a Dem House & Senate!!

    May 16, 2012 03:35 pm at 3:35 pm |
  5. Obama 2012 - BEND Forward America, take another 4 long years of FAILURE

    Leftist/Democrat logic:
    Trying to STOP the spending and borrowing damages the country's credit rating.
    Continuing to spend and borrow 20, 50, 100, 999 TRILLION dollars does not damage the country's credit rating.

    How are logical people supposed to deal with kooks like this???

    May 16, 2012 03:44 pm at 3:44 pm |
  6. Claudia, Houston, Tx

    Same Boehner and the Taliban GOP, you get the same results, nothing and remember the only thing that "trickles down" is water so don't let them feed you that crap about supporting the rich creates a trickle down effect that creates jobs.

    May 16, 2012 03:45 pm at 3:45 pm |
  7. Mikey

    @Bend – In the 50's, the highest marginal tax rate was 92%... and we prospered
    In the 60's and early 70's the highest marginal tax rate was 70%... and we prospered
    In the 2000's, Bush and friends lowered tax rates to the lowest they have been in 2 generations... and the wheels came off the economy. High tax rates do not hurt the economy very much. Do you know what does? High income disparity and a weak middle class.

    If you chart the incomes of and wealth held by the top 1%, you will notice that there are two very high points on the graph – the late 1920's and the 2000's; right before the two worst economic downturns in the past century. Coincidence? I don't think so.

    May 16, 2012 03:48 pm at 3:48 pm |
  8. Anonymous

    "Not really, socialism operates on very high percentages. But your 35% is totally misleading. Democrats want to raise the top rate to over 39% and with additional "millionaire penalities" that raise it even higher into the 40's maybe mid-40s. Add to this state, local, sales taxes and you're around 55-60%. So exactly at what percentage are we offically a socialist state? When half the people in the country pay ZERO income taxes, fewer and fewer pay more and more so these percentages will need to climb to support the massive number of tax dodgers."

    Are you calling Ike, Kennedy, Johnson, Nixon, Ford and Carter socialists? The top marginal tax rates were quite high then, around 90% during the Ike era. Strangely, the only people running around screaming "socialist" and "communist" back then were McCarthy and his little cult, along with the John Birch Society. Admit it, they're your heroes aren't they?

    May 16, 2012 03:50 pm at 3:50 pm |
  9. Anonymous

    "Its just monopoly money.., print more.., no worries."

    So, were you complaining when the GOBP was running up all that debt?

    May 16, 2012 03:53 pm at 3:53 pm |
  10. The Real Tom Paine

    -Obama 2012 – BEND Forward America, take another 4 long years of FAILURE

    GonzoinHouston – 100% taxation is socialism or Marxism. 35% is not.
    ===================================================
    Not really, socialism operates on very high percentages. But your 35% is totally misleading. Democrats want to raise the top rate to over 39% and with additional "millionaire penalities" that raise it even higher into the 40's maybe mid-40s. Add to this state, local, sales taxes and you're around 55-60%. So exactly at what percentage are we offically a socialist state? When half the people in the country pay ZERO income taxes, fewer and fewer pay more and more so these percentages will need to climb to support the massive number of tax dodgers.
    ***************************
    State and local taxes were raised after the burden of those services fell on them over the last 30 years of budget cutting at the federal level: this was the goal of regan's " New Federalism", a misnomer if there ever was one. The righties actually expect the level of services to remain the same while cutting the amount of money needed to operate them. Its actually astonishing they even claim to be fiscally responsible, when they have deliberately ignored the basic premise of actuallypaying for what you want, as opposed to their practice of kicking the can down the road for future generations to pay. All fo a sudden they scream about spending, after their policies looted the federal treasury for decades to pay for tax cuts that rarely dleivered the jobs promised. Tax cuts produce debt, demand produces jobs. If anything, the GOP has been promoting Socialism for the Wealthy and corporations: hey, meybe that's why Mitt thinks corporations are people, too, since they are the most adept at being subsidized by middle-class taxpayers.

    May 16, 2012 03:58 pm at 3:58 pm |
1 2