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Author: Howie52 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1960845  
Subject: Re: Why do you want a compromise? Date: 11/13/2012 10:52 PM
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" It's important to be an informed voter. "

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Thought you might be interested in a post from another board
you may have missed:

http://boards.fool.com/the-fiscal-cliff-solving-the-wrong-pr...

"Let’s examine the fiscal cliff top 5 dollar issues for 2013. In rank order they are:


1. Bush tax cuts for lower incomes $288 billion

2. Extend 2% holiday and extended unemployment $108

3. Bust tax cuts for upper incomes $42

4. Other spending $40

5. Defense spending $24

Total $502"

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The post links to a CBO report which discusses the impacts of the
"cliff" in a very straight-forward manner.


Allowing the AMT to come back in full force is another item
up for discussion which I have not heard many folks recognize yet.

And of course the deficits are still there:

http://www.usgovernmentspending.com/federal_deficit_chart.ht...

"FY 2013*: $901 billion FY 2009†: $1,413 billion
FY 2012: $1,089 billion FY 2008: $459 billion
FY 2011: $1,300 billion FY 2007: $161 billion
FY 2010: $1,293 billion"

The deficit for 2013 would be reduced to 560 billion dollars based on
CBO forecasts. I don't know if the forecasts account for a
potential recession.

But as for the question 'Why do you want a compromise?" - I suspect
that neither political party would want a second recession when the
starting point is an unemployment rate of 7.9%, when unemployment
benefits are cut by the standing "cliff" agreement, when the
unemployment among some groups is 10% and higher, when government
spending would be curtailed in many ways - via defense spending cuts
and reduction in civilian employees working for the military.
In short there would be an immediate job-loss inside the beltway.
The government does not like reductions inside the beltway.


Howie52
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