The fiscal cliff – and the hullabaloo surrounding it — is a curious phenomenon. It has been over 3 years since Harry Reid’s Senate passed a budget. The U.S. federal government is over $16 trillion in debt. And Uncle Sam is borrowing 1 out of every 3 dollars he spends.
If there is a “fiscal cliff,” our federal government drove off the edge of it about ten trillion dollars ago.
And yet we’re being told another recession looms unless we avoid automatic tax hikes and spending cuts scheduled for Jan. 1. So powerful insiders are negotiating a “bipartisan deal” behind closed doors to give us … tax hikes and spending cuts. What’s the difference?
In Washington, “shared sacrifice” means everyone must sacrifice except the government. History has shown that in these bipartisan “deficit-reduction deals,” the tax hikes are immediate while the spending cuts are promised – yet never materialize.
In the last such “deal” in 2011, taxpayers were cornered into raising the debt ceiling by $2 trillion while a so-called super committee was created to find $1.2 trillion in cuts over ten years. If the super committee failed to agree on where the cuts would be made, across-the-board cuts would kick in.