The Fiscal Cliff: What You Need to Know

The Fiscal Cliff is coming.

...And it could be bad. But then again, it could be good.

Two events will happen December 31, 2012, unless Congress takes action:

1. Tax cuts from the Bush-era will expire.
2. Government spending will be reduced will take effect.

President Bush signed tax cuts that were to end in 2011, but President Obama extended them to keep the government running through the 2012 Presidential election and expire January 1, 2013. This would return taxes back to 2001 rates. This could mean A LOT more to be paid in taxes...by everyone. 

Colorlines stated:
The fiscal cliff was a gun that the president and Congress pointed at their own heads, in order to force themselves to deal with the country’s longterm debt. That debt, accumulated mostly through defense spending and irresponsible tax cuts for the wealthy, has to be resolved in a responsible manner if the U.S. is to prosper as the economy recovers. Both that debt and the fiscal cliff that we now face are products of an absence of leadership in Washington. As the nation’s chief executive, the president has to spearhead the unwinding of the trap that he helped to create. Doing so in a way that preserve’s progressive values will be his charge. However difficult, it’s the only way to avoid a calamity.

The Fiscal Cliff - Everything You Need to Know



What does the Fiscal Cliff mean for you?

Campus Progress explains what this could mean for you, me, and everyone else:

Considering all that is included in the fiscal cliff, the expiration of the Bush Tax Cuts for the middle class, the end of the temporary, two percent reduction in payroll taxes that the Obama administration passed, and the expiration of the long term unemployment benefit extension, and it’s clear that this will have a major impact on middle class families. A tax increase would make it even harder for parents to send their kids to college and young graduates to get their feet on the ground and begin their own successful careers.

As if this wasn’t enough, the spending cuts from the sequestration will hit Medicare, the Federal Emergency Management Agency, and education funding just to name a few areas. Adding it all up, failure by Congress to act would mean taking about $800 billion out of the economy next year alone. Such a severe shock could send the economy back into a recession, driving unemployment back up and erasing so many of the gains middle class families have made over the last four years.

Young people should be especially concerned because this is the kind of economic event that would ripple across generations and only add to the hurdles Millennials already face in earning a college degree, achieving financial independence, and beginning a successful career. Taking a huge bit out of family incomes means that the constantly rising cost of college will be even more challenging for families to tackle and the 37 million borrowers that have had to take out student loans to pay for school will continue to grow even more.
Our elected leaders must understand the critical juncture the country is at and take swift and decisive steps to see that action is taken now. Americans want common sense tax reform that eases the burden faced by middle class families and requires the wealthy to pay their fair share is put in place and a firm commitment to continue investing in the vital programs that have helped so many families and young people to succeed.

Shortly, after re-election President Obama said...

Be informed.

Be aware.

Be prepared.

State of the Union: What did President Obama really say?

Last night was the State of the Union address by President Obama and I must say I was very pleased! The way he called out members of Congress (both sides) and the top 2%. The way he told everyone to get along and play nice for the sake of the American public.

So what did the POTUS say?

-- "the basic American promise" that hard work can allow one to own a home and support a family are at risk if the government doesn't do more to balance the scale between the nation's rich and poor. We work hard, very hard and get very little for our efforts. We work and work and work...we need to see positive results in ur wallets and in our country.

-- "The defining issue of our time is how to keep that promise alive. No challenge is more urgent. No debate is more important. We can either settle for a country where a shrinking number of people do really well, while a growing number of Americans barely get by. Or we can restore an economy where everyone gets a fair shot, everyone does their fair share, and everyone plays by the same set of rules.  What's at stake are not Democratic values or Republican values, but American values.  We have to reclaim them." AMEN!

-- an "economy built to last, where hard work pays off and responsibility is rewarded." We work HARD, let us play HARD!

-- "In the six months before I took office, we lost nearly four million jobs.  And we lost another four million before our policies were in full effect." Just a reminder...

-- "As long as I'm president, I will work with anyone in this chamber to build on this momentum. But I intend to fight obstruction with action, and I will oppose any effort to return to the very same policies that brought on this economic crisis in the first place." Play nice or no recess for you, Congress!

-- "blueprint for an economy that's built to last" based on four main themes: American manufacturing, American energy, skills for American workers and "a renewal of American values." Isn't that what our country was built on? Why did we ever leave those values behind?

-- a rollback for tax breaks for American companies that outsource jobs overseas and proposed new tax cuts for manufacturers that build their products stateside. Keep American jobs American.

-- proposing new tax incentives to help homeowners save $3,000 a year on their mortgages. Much needed help for homeowners.

-- He also announced the creation of a federal task force to monitor banks, mortgage lenders and credit card companies for fraud. See what a lack of monitoring will get you?

-- "Millions of Americans who work hard and play by the rules every day deserve a government and a financial system that do the same. It's time to apply the same rules from top to bottom: No bailouts, no handouts, and no copouts. An America built to last insists on responsibility from everybody." The bailouts didn't trickle down as intended. Sharing is caring!

-- He also called on Congress to enact measures to ensure student aid--but he also warned higher education institutions to crack down on skyrocketing education costs. Thank you!

-- "If you can't stop tuition from going up, the funding you get from taxpayers will go down. Higher education can't be a luxury--it's an economic imperative that every family in America should be able to afford." More education leads to more innovation...

-- "We don't begrudge financial success in this country. We admire it. When Americans talk about folks like me paying my fair share of taxes, it's not because they envy the rich. It's because they understand that when I get tax breaks I don't need and the country can't afford, it either adds to the deficit, or somebody else has to make up the difference." Sharing is caring!

-- "With or without this Congress, I will keep taking actions that help the economy grow." BOOM!

Remember to VOTE and let's keep this progress going!

Warren Buffett Tells Republicans Put Up $$ or Shut Up

Yahoo! Finance posted the article recently entitled Buffett to Republicans: if you pay, so will I in which he tells the members of the Republican members of Congress he will give $1 of his own money for every $1 they put towards the National Debt! And $3 for every $1 put up by Senate Republican leader Mitch McConnell. This move by Buffett isn't his first attempt to get Republicans, and Democrats for that matter, to contribute more of their millions to help the U.S. get out of debt. 

Mr. President, this is my plan to get the U.S. out of debt...

This idea came from a NY Times article Buffett wrote where he basically said the top 1% should be taxed more than everyone else. Hmmmm, makes sense to me. The top 1% have more money than the other 99%, so why shouldn't they be taxed more? They get more tax breaks, so I doubt giving a little back wont hurt their pockets. Of course, those in the 1% aren't happy about anything Buffett is saying lately. In a reply, McConnell said Buffett should extend this offer to Democrats and to President Obama. Hopefully, they will step up!  

Mr. McConnell, what's wrong with Mr. Buffett's plan?

I think McConnell is missing the point, or maybe he is sly like a fox. Either way, his response is typical of the way many Republicans think towards their contributions to our country. "They" have and we don't. If Buffett, who has more money than these Congressmen, is willing to hand over his own money to help get our country out of this mess, why wouldn't the Republican Congressmen be willing to do what they can to help save our economy?

I like the concept behind Buffett's proposal and strongly feel more of the top 1% should do what they can instead of putting the pressure on us. We can't afford life these days. More people are sliding from "middle class" daily and these millionaires are getting richer. That's pretty selfish.

I know Republicans don't like to "support" those that don't have - including those Republicans that don't have and still feel they are supported by their Republican Party when they aren't - and feel the downfall of our country is do to us and no the tax breaks they have been given. Remember it takes a villiage....not just to raise a child, but to support a society.
 

Help me save our country!

So.....Republicans and Democrats...open your wallets and step up to Buffett's challenge! Help stop our country from falling further and further into debt.

Do you think the Republicans will step up? The Democrats?