Tuesday, November 27, 2012

America + Revenue = Apocalyptic Debt

The Fiscal Cliff is fast approaching. The word to look for from those who are paying attention to the shades of gray and underlining messages, is "Revenue."

America is looking to make money, i.e. "get [real] rich [real] quick!"

Unfortunately we know the drill, a scam or ponzy scheme will come crashing down, as if it is too good to be true, it probably is.

What Obama will do, will be to seek out revenue [cash flow coming in] by cutting/raising taxes, closing loopholes, better spending, etc. This raises so many questions its beyond the capabilities of man to comprehend. To make this revenue work, you would literally need an A.I. of American interests/infrastructure to manifest in the form of a dictator.

The amount of creativity, knowledge, mastery, etc tor pull this off is other-worldly. So the bedieved [lesser of two evils] approach will be: exploitation, resource tapping [that's the most dangerous I think; where is it coming from?! - plus this is the American answer to every problem, consume!], debt, etc. The debt now will be generated from the most abstract theoretical [re]sources possible.

It seems the World really has gone mad in the field of theory: debt theory, resource theory, war theory, political theory, science theory, religious theory, gender theory, etc...Is there any viable truth left? It's all mad scientist theories that are self-consuming!

Obama will find his revenue, just like Physics has found its Higgs Boson, and every other field fashions their own holy grails too, "in the sweat shops of China"...it's gotta be a bargain, ya know? - on everybody else's expense.

America's resources are virtually gone. Debt is unprecedented. Consumerism went cannibal. Creativity died a long time ago. Leadership disappeared. You get the point.

I only see three viable options: War,  find new resources, or a Central Bank, NWO. In fact, they are all the same. The only delay in the institution is the arrogance of Man, and his upkeep of borders that fell some time ago.

Moshiach has better be God's answer to the proverbial cliff, otherwise we are all consumable resources in Obamaworld.

It's now widely agreed that steering away from the fiscal cliff — the combination of spending cuts and tax increases set to hit at the start of the year — will require some combination of revenue increases and spending cuts. The central sticking point could well be whether President Obama and Congress can agree on the definition of revenue.

Tuesday, November 27, 2012 A grand bargain, a compromise to avert the so-called fiscal cliff, could all come down to one word: revenue. It's now widely agreed that steering away from the cliff — the combination of spending cuts and tax increases set to hit at the start of the year — will require some combination of revenue increases and spending cuts. The central sticking point could well be whether President Obama and Congress can agree on the definition of revenue.

At the moment, the casual observer could easily get the sense that the president and Republicans in Congress are talking past each other.

"I think there's a growing consensus — a consensus that has long existed, but growing now in places that weren't always fertile for growth, that we have to do this in a balanced way and that revenue has to be part of it," White House spokesman Jay Carney said Monday.

Meanwhile, Senate Minority Leader Mitch McConnell, R-Ky., said on the Senate floor Monday that Republicans have stepped out of their comfort zone by agreeing to talk about revenue.

"We've been open to revenue by closing loopholes as long as it's tied to spending cuts and pro-growth tax reform that broadens the base and lowers rates," he said.

Talk Of Compromise

Now, the translation: When White House officials talk about revenue, they mean allowing the Bush-era tax cuts to expire for the wealthy. Under the president's definition of revenue, the richest 2 percent would see their top tax rate rise to 39 percent, and he'd also limit deductions and cut out loopholes. That's simply not what McConnell and many of his fellow Republicans mean.

But at this point in the negotiations, no one is saying that — at least not publicly. Instead, there's been a lot of talk of compromise from lawmakers like Senate Majority Leader Harry Reid, D-Nev.

"I remain optimistic that when it comes to our economy and when it comes to protecting middle-class families from a whopping tax hike come January 1st, that Democrats and Republicans will be able to find common ground," he said Monday.

Opposition To Tax Increases

The ability to find common ground may depend on just one man's definition of revenue — a man not in the White House or the Capitol. He's anti-tax lobbyist Grover Norquist, and he's gotten the vast majority of Republicans to sign a pledge saying they will oppose any and all tax increases. A few signatories have recently come out saying they won't be bound by the pledge, but Norquist made it clear Monday on Fox News that they do so at their own peril.

"We could ask President Bush, George Herbert Walker Bush, how his second term went after he broke his pledge," he said.

Those comments might explain why many in Washington are brainstorming ways to raise revenues without, strictly speaking, raising tax rates. Those ideas include capping deductions for the wealthy, more broadly limiting deductions, and possibly even making the wealthy pay the top tax rate on every dollar they earn.

David Kamin, an assistant professor of law at New York University, was involved in last year's debt-ceiling negotiations as a special assistant to the president.

"It's a possible place where people could maybe get to a compromise. It's also a classic move," Kamin says, "where one side says they don't want to increase the statutory rate, but the other side says maybe there's a way we could kind of do it in a different way that doesn't increase the statutory rate but gets us to the same place."

Falling Over The Fiscal Cliff

He says it's both mathematically and politically impossible to get all the revenue needed through closing loopholes and capping deductions while also lowering rates, which is what Republicans are calling for.

But unlike last year's debt ceiling negotiations, Democrats are the ones with the ultimate trump card, says Rep. Chris Van Hollen, D-Md., a member of the House Budget Committee.

"If they don't put any additional revenue on the table, the fiscal cliff is going to deliver more revenue than anybody wants," he says.

That revenue will come from automatic tax increases on just about everyone — if Congress and the president don't work something out by the end of the year.

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Leah said...

Rabbi Katz,
What I find to be stressful and astonishing is listening to the "experts" who are on teh conservative radio programs here.
They are genuinely concerned with where the US is headed and they make comments that Obama needs to do this to avoid this and if he wants to work with Congress to do this he should employ this strategy...and so forth.
What gets me is what I think they either don't get or cannot say: Obama does not care. That's number one. The other thing is that I believe that he knows very well what he is doing and is doing this big and slowly because he knows that if he set up the system to crash all at once from the get go, it wuold be both suspicious and prevented. I think he is willing to live with intelligent people wondering if he is an idiot or inexperienced.
I believe his actions are intentional.

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