Econ 101 the hard way

http://legalinsurrection.com/2012/12/ob ... %B7tion%29

.............................."Three reporters interviewed New Yorkers (most of whom, statistically, voted for Obama) of all income groups, asked them what they earn per year, and passed on how much extra they’ll be paying unless a comprehensive deal is worked out.

The story is a terrific primer on the impact of higher taxes on a consumer economy—how what Person A spends on goods and services from Person B affects what Person B can afford to buy from Person C, who in turn… You get the idea.

Unfortunately, the Post didn’t realize that it was publishing such a story and left unsaid the best stuff. So let’s fill in the picture.


“It’s that much higher?” asked IT worker Vikas Kataria, 34, who discovered that his combined household income of about $250,000 per year will cost him nearly $10,000 more in taxes.

“I thought it was a couple thousand — but that’s a lot,” said Kataria, who works at Merrill Lynch in Manhattan and is married to a systems analyst for a brokerage firm. “That’s huge!”

With higher taxes, the couple would have to cut out on traveling and family vacations.

Kataria represents tens of thousands of Americans who will each be cutting back on $10,000 worth of traveling, meaning hundreds of thousands fewer airline tickets, hotel rooms, rental cars, "..............................

But Bob, the Gubment will have plenty of money! Won't it be great when the largest companies take their operations overseas, the wealthy move out, and the tax paying labor pool disappears? We will finally achieve economic equality and the Gubment will take care of all of us with the money that they will continue to collect from... oh wait...

The best news of all? The collective "we" voted to be in this situation.

The Fiscal Cliff Questions The White House Press Corps Should, But Won't Ask President Obama

http://www.forbes.com/sites/paulroderic ... ent-obama/

Carol Leeson (WSJ):

“During the election campaign, you called for a ‘balanced approach’ to the fiscal cliff with spending cuts matched by tax increases. As I understand the negotiations, you are demanding tax increases on high-income taxpayers now in return for spending cuts sometime in the future. The Republicans have fallen for this ‘raise taxes now reduce spending later’ trick before. Does your negotiating offer fulfill the balanced approach you promised voters?”

President Obama:

“Carol: You should know that we need stimulus spending not spending cuts during a weak recovery. That’s why my plan calls for more spending and higher taxes on the rich. When things get better, we’ll gather around the table to negotiate spending cuts, but not now. Of course, it could happen that things don’t get better. Then we’d have to continue spending more.”

Carol Leeson (follow up):

“You assured voters that we had a solid recovery underway — that your policies worked and we were out of the woods, so to say. Now you are telling us the recovery is so weak we need more stimulus. It seems last time you gave us a trillion dollar stimulus, not much went according to plan. Why should it go better this time?”

President Obama:

“Well, you see— (stammers)”

Carol Leeson (second follow up):

“If I could follow up on a slightly different angle: You told the American people that you will fight soaring deficits by raising taxes on the top 2 percent. You said that we will be in good shape if only the rich pay their fair share. Are you not aware that your own Congressional Budget Office estimates that increasing taxes on the top two percent will scarcely lower the deficit?”

President Obama:

“Carol: As a writer for the Wall Street Journal, you should know that, under my predecessor, the rich and Wall Street Fat Cats made out like bandits. Isn’t it time they paid their fair share?”

Carol Leeson (third follow up):

“I asked how much of the deficit would be covered by your tax on the top two percent. You have not answered my question. The CBO’s answer is about 5 percent. Not much. Are you prepared to accept their estimate?”

President Obama:

“Let’s move on. Jake Rapper.”

I know this is fiction but as the President and the Dems try to bully the Republicans into a bad deal, wouldn't it be great to hear the press corps ask some actual cutting questions instead of humping the Presidents leg?

Just where IS that balanced approach promised by the President during the campaign?

How Obama negotiates, take my deal and I will only promise future possible cuts that we know will never actually happen. Which party has ever actually cut the budget or even decreased the rate of growth?

How the GOP negotiates.......do it our way or we will stomp our feet and hold our breath till we turn blue.

archer wrote: How the GOP negotiates.......do it our way or we will stomp our feet and hold our breath till we turn blue.

Just like what the Dems are doing...hmmmmm, go figure. Stalemate. Wow, you're party rocks.
Lionshead, that interview was good, more could have been accomplished so that we could all get more intel, but tough questions have never been Barry's forte.

Edit: "Wow, you're party rocks." I've said the GOP should cave to whatever the Dems want so we can show the obvious blame and move on, but that isn't gonna happen.

archer wrote: How the GOP negotiates.......do it our way or we will stomp our feet and hold our breath till we turn blue.

Plan B? Boehner(R) was offering a compromise and the TEA Party Republicans rejected it, but even if they would have approved it, Sen. Harry Reid had already promised that he would not have let the Senate vote on it. So who is blocking legislation? Sen. Harry Reid(D)

But lets not let facts get in the way of a good zinger right?

Neither side is making a good faith effort and both are hoping the other will take the fall. Just like here on this board, partisanship before patriotism. It makes me sick.

May as well put on your best pair of cheap sunglasses, break out your favorite lawn chair, and adult beverages of your choice, this is what's going to look like:

[youtube:5xz7wuze][/youtube:5xz7wuze]

"That was cool! What? What'd you mean those were the only two trains left and we are 1000's of miles from anywhere?! Walk?! What about all the stuff I was promised by the Chief Snollygoster?!"

Wait a minute. I thought President Obama and the Dems have been fighting against raising taxes on the middle class?

'Fiscal Cliff': Biden, McConnell Close In on Last-Minute Deal

http://abcnews.go.com/Politics/OTUS/fis ... d=18099848

Regardless of the "cliff," virtually all workers are due to see less in their paychecks starting in January when the temporary 2 percent payroll tax cut will expire.

Gee, I wonder why none of the politicians haven't been talking about this 2% increase in the Payroll Tax for Social Security? Isn't this a tax increase that hits all working Americans? The lower and middle income folks too?

Oh, maybe that's it. It's okay as long as it only hits those who are working right? Hmmmmmm?