Last night the House passed the Senate bill to avert the Obama Cliff. Nobody’s taxes were cut, entitlements were extended, tax increases were used to fund spending increases, and spending was increased by well over $300 Billion. Let’s look back at what we said yesterday.
Burst Updates, Jan 1: Long term unemployment remains as is, capital gains and inheritance change, sequestration is delayed, but the heart of this deal is ‘Old 41′, $620 Billion in new taxes and $15 Billion in spending cuts. That’s the ratio Obama came before the country yesterday afternoon and campaigned for while the Senate was trying to work something out. “Now, if Republicans think that I will finish the job of deficit reduction through spending cuts alone, and you hear that sometimes coming from them…”
We looked at the liberal reaction to the deal. Krugman: “And at least one positive thing can be said: no giveaway on Social Security, Medicare, or Medicaid. Basically, no spending cuts at all.”
Bottom line, without the deal, the government goodies would have been lost. Give so little on taxes and get so much on entitlements.
America continues to become more and more like Europe. The Obama Cliff deal brings us that much closer. Just like Europe;
We tax the successful
No control of spending
Our government grows uncontrollably
We provide cradle to grave entitlements
Our mountain of debt continues to grow higher
The Obama Cliff deal adds $4 Trillion in new debt and America cannot pay it. Just like Europe.