This is so odd of me saying this…
But like LOTR‘s Gollum who jumps Frodo in the end of The Return of The King, it may be the odious monster we were somehow bonded to, that becomes the real hero after all, albeit for selfish motives…..
If the Tea Party does not pass the Senate Deal passed 89-8 in the wee hours of the New Year, we go onto Clinton’s tax plan.
Just like that.
In a fair way, everyone pays more. But bottom line, we start paying down our deficit, and at the same time we are doing that, we take away the money siphoned off out of our economy, and reinvest it back in at the bottom where it grows again…..
I don’t know how many of you remember it, but during the 2000 election cycle in the debates Al Gore said this of George Bush’s Tax cuts when he advocated that the poor would get tax cuts too… Al Gore said, the tax cut would amount to getting an extra Diet Coke a week; it would help a poor family that much! Well, guess what? When it expires, they will do with one less Diet Coke a week…. That hurts but it is something they can live with.
Unless you’ve lived before and during the Clinton Tax Rates, you have difficulty appreciating just how exactly perfect they were. We’ve had higher rates before, and lower rates after, but none were the perfect balance that achieved economic growth and raised revenue to the extent that had it continued, it would have eliminated the entire National Debt by 2008.
They were the perfect balance. Investment flourished, jobs grew, and as the economy responded, more money poured into the treasury, and its loss to individuals was barely felt.
And now, by default, they are here again….
Estate taxes raise an additional $26 billion a year in revenue over what Obama proposed… Investment income donates an additional $22 billion to the Treasury, each year! Income tax revenue is $118 billion over what Obama just proposed… All told, per year, $166 billion extra off our $1.2 trillion deficit, will not have to be borrowed this year…. Of course, we’d still be borrowing $1.1 trillion, but … what the hell, The $166 billion is just a one percentage off our yearly GDP…. So we lose a penny off every dollar… It is making us healthier.
Obama couldn’t do it, he ran on not increasing taxes under $250,000. The Republicans can’t do it, they ran on using cuts, not taxes to balance the budget…. But, in sort of a miraculous way, one only God could have devised, we can achieve a balanced budget, by having no agreement at all. Revenues go up, more than promised. Cuts go into effect, more than promised, and we slowly stop borrowing money to pay for our government’s expenses. Instead, we start to pay as we go.
Both sides can appeal to their constituents, … look, we did all that we could do. Fate just took a different turn. For the most part, both side’s constituents will back them up on that.
But for it to work, the Tea Party has to do what they were elected to do… be fiscal hawks and vote to balance the budget. If they balk on the Senate deal so no deal is reached, the warm, fuzzy, Clinton tax regime again goes into effect…. Will there be causalities? If one looks at history, probably not, at least none lasting more than two months… Then they get a better job than they would have had, had things stayed where they were…
And when history looks back, it will be the Tea Party that saved us… who again put this nation on the course of peace and prosperity, making us again the economic engine that drives the world. Although its motives like those of Gollum may not be of the highest nature, the results will be the same… As the “Ring That Has Ruled Us All” ( the Bush Tax Cuts), slowly melts into the lava under Mt. Doom, the dark forces collapse upon themselves, and the good that lies in all America, stands again basking in the New Year’s sun, resplendent in victory, knowing the Dark Days of Sauron, are gone for good.
Frodo was not the real hero. If you remember, he, like Democrats walked us up to the edge of the cliff, then failed. The Tea Party seeing the foot steps walking back from the brink,, can and will take the ring, and destroy it from our sight…. forever…..
Not even i could have seen that coming….. The Tea Party,… coming to the rescue.