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The Sunday Political Brunch – Dec. 2, 2012


It’s that weird political season between Election Day and the inauguration. But Congress is back in Washington, so let’s see if members can make any progress with President Obama on that phrase we all love to hate, the “fiscal cliff”!

Here are some thoughts:

A Taxing Problem, An Age-Old Problem – At some point the two sides will compromise, and I am betting the following will happen: Republicans will agree to raise the tax rates on people making over $400,000 per year (the President wants the level at $250,000). Democrats will agree to incrementally raise the retirement age for Social Security and Medicare benefits (it will probably only apply to people age 45 and younger). We’ve seen this before. Years ago my retirement age was indexed up from 65 to 67 years and 10 months. We are likely to have a similar plan. People are living and working longer – therefore paying into the plans – and, at the same time many are delaying the receipt of their benefits. At best, this is a short-term fix.

Deducting Deductions? – One of the items being tossed about is putting a cap on itemized deductions. Right now, things such as home mortgage interest and charitable contributions are fully deductible. There is discussion of a cap – say $50,000 per year for all deductions combined. I predict it will never happen. The lobbyists for these causes are just too powerful. The National Association of Realtors and Mortgage Bankers Association believe the home mortgage deduction is a big motivator for home ownership. Organizations such as Catholic Charities and the Red Cross depend on large donations (yes, even from people doing it simply for the tax advantage). Even if deductions are capped (and I doubt they will be), the levels will be so high as to only affect perhaps the top 1 percent of wage earners.

Jump! – So will we go over the fiscal cliff? Probably, at least for a while. Our government always operates in crisis mode. It is reactive; not proactive. We never seem to learn the lessons catastrophes like Hurricane Katrina and 9-11, or the messes that were the two government shutdowns in 1995. We wait until our house is engulfed in flames before calling the fire department! While the deadline for the fiscal cliff is January 1, I bet it will be more like February 1 before action takes place. All budget cuts and tax increases that happen after January 1 can be retroactively fixed. It will be a mess, but that’s how the U.S. does business.

The Pledge – One of the most persistent political issues for Republican candidates over the past 20 years has been pressure the take a pledge not to raise taxes. This wasn’t just a promise; it was a signed pledge and oath. The commitment was to Grover Norquist, founder of Americans for Tax Reform. I’ve always found it odd that any politician would swear to any pledge, other than the oath of office. I know the goal is to keep them honest and steadfast (and to keep taxes low), but politicians should be free to compromise, and, if they suffer the consequences from voters, then so be it. Pledge allegiance to the flag, and pledge to uphold the Constitution in the oath of office, but that’s where it should end.

White House Cantina – President Obama hosted his Republican rival for lunch in the Oval Office on Thursday. Their conversation was private, but the lunch menu was not. In a decidedly Latin twist, the men dined on white turkey chili and Southwestern grilled chicken salad. Maybe it was a subtle message: If Romney had spent more time courting and cultivating the nation’s growing Hispanic voter base, maybe he would have been hosting lunch for a defeated president. Food for thought anyway!

Oh, Christmas Tree! – Rhode Island was thrust into the national spotlight again this week and not in a positive way. For the second straight year Gov. Lincoln Chafee (I-RI) has been embroiled in a controversy over what to call the Christmas tree in the State House rotunda. He says it’s a secular “Holiday Tree” and held a lighting ceremony with only 30 minutes notice to the public, to avoid a protest like the one last year (photo above). According to a Providence Journal poll, 82 percent of respondents want it called a Christmas tree; 6 percent a holiday tree; and 12 percent checked the, “Who Cares?” box! The national TV exposure was brutal: http://www.youtube.com/watch?v=iMTBwmiXfCc. Most Rhode Islanders – if you ask them – want Santa Claus to bring more good paying jobs to a state with the second highest unemployment rate in the nation.

As always, we welcome your thoughts! Click the comment button at www.MarkCurtisMedia.com.

 

 

 

Govstench

5:38 pm on Monday, December 3, 2012

Mark, this govt is operating in a crisis mode. They always react and never plan. The people spoke and we elected this loon for another 4 years. I hope the country survives because this guy has no clue on how to run it. He is an amature and continues to blame the other guy.

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no regr allia b

6:22 pm on Monday, December 3, 2012

Pretty Much in a nut shell there Gov ;-}

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Naome Lixes

6:03 pm on Tuesday, December 4, 2012

" I hope the country survives because this guy has no clue on how to run it. He is an amature and continues to blame the other guy."

So, I have reached a conclusion. Given your inability to spell frequently used words, your insistence that the most highly placed official in the land is incompetent and your endless prattling about non-existent problems;

You're an idiot.

I now bask in the Glorious Sunrise of our Impending Socialist Utopia, and have the greatest opportunity over the next four years; baiting, hounding and needling
you clueless hacks with one foot in the grave, the other in your mouths.

Leave RI

5:24 pm on Tuesday, December 4, 2012

Mark,
I did find it funny that the faux guv stammered and blubbered on that link. I think we've all missed the fact that before he jumped the party ship, he was also involved with a blubbering and stammer filled debate with Grover
http://www.youtube.com/watch?v=Af1_iPolkpY

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Leave RI

5:25 pm on Tuesday, December 4, 2012

C'mon even Stevie Wonder could see this coming

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Naome Lixes

5:58 pm on Tuesday, December 4, 2012

Wait, Wait - Don't tell me had him on in Reverend Norquist's staid (or stead)...

Much more entertaining than the pretender.
Who is also quite fuzzy - but not so cute.

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Naome Lixes

6:22 am on Thursday, December 6, 2012

Playing with grownups is MUCH more fun than with my kids.

I still like Grover, mind you.
I'll miss Elmo. Elmo needs to learn to check ID more closely...

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Leave RI

9:49 pm on Thursday, December 6, 2012

Yes..I too, had, well a slightly deeper fascination with one of that same gang (we'll call her MP for code). When it was reported that the affair had become more than platonic.. I insisted someone produce proof..this nearly resulted in a courts martial..although they are my eyes..DNA was inconclusive
http://humandescent.deviantart.com/art/Pig-headed-94339325

Rags 1

12:05 pm on Wednesday, December 5, 2012

The Repubs are showing their hypocrisy. Take an oath to a non-elected tax zealot or group then take an oath to uphold the constitution that allows and demands that the House pass monetary legislation.
The only alliances or oaths should ever take regarding his/her job is to the constituents. No exceptions.
When Romney said that the reason Bain Capital had investors put their money
in the Cayman Isles was to avoid US taxes. Hello! As an Independent, he lost me on that one and voting for President Obama was easy.
I would vote against anyone taking an oath of loyality to do the job to a non-elected group.
People know that they have to pay taxes to run a govenment, it is how the money is spent that drives them crazy.

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Joe Sousa.

6:31 am on Thursday, December 6, 2012

The National Debt Clock ticks as we close in on $17 trillion . Our children's future is being cast in chains. Slaves to a debt they never had any say in. Hold your heads in shame.

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Leo

8:16 am on Thursday, December 6, 2012

All the Republicans have to do is stop trying so DESPERATELY to protect the wealthy 2% who don't NEED their protection and the budget problem is solved! Shameful politics!

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Bill

9:11 am on Thursday, December 6, 2012

You apparently believe the lie. OK, so let's say we do what is proposed. We raise taxes on the wealthy. Now, assume that there are no negative consequences which reduce revenues like increased unemployment, decreased investment, etc. This year, we will spend approximately $1 trillion more than our Federal revenue. We have been $1 trillion in the hole every year for the last 5 years. At best, we can expect something like $100 billion. So where do the other $900 billion come from? Personally, I wish the Republicans would create a 1-item, yes-no vote bill which only raises the tax rates on the "rich" just to take away the inane talking point from the Democrats.

no regr allia b

11:49 am on Thursday, December 6, 2012

Leo

“Raising the tax rates on everybody in the top 2% will not get enough additional tax revenue to run the government for 10 days. And what will the government do to pay for the other 355 days in the year?

Read More At IBD: http://news.investors.com/ibd-editorials-perspective/120312-635476-tax-hikes-on-wealthy-americans-wont-make-a-dent-in-deficits.htm#ixzz2EI4FDJ00

As you can see taxing the so call rich even at 100% would only last about 100 days of the government by most estimates. Of course then those rich would be added to the welfare rolls after you take 100% of their wealth. Oh and the Country would then be bankrupt and working in Chinese factories for vouchers to pay the Deficit.

The problem is spending, fraud, waste and abuse. Along with a society that has forgotten what self-responsibility is. Nothing to do with the top 20% of people paying currently 60% of all taxes. Leo you need to ask your senator to send you a copy of the Federal budget (it is Free) and read it. It seems you have no clue how much this government spends or where.

PS. It is not one party against another, it is the "People of the Republic" against a Government out of control spending money that does not exist but in a printing press.

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Naome Lixes

6:25 pm on Thursday, December 6, 2012

"It seems you have no clue how much this government spends or where."

There is no doubt that waste, fraud and corruption undermine the expenditures of our largest line item - the Department of Defense. That's what you meant, right?

Do tell, "over half of all entitlement spending flows to the elderly, and around 40% of that sum is spent on health care." The Economist, Makers and Takers 13OCT12

The ridiculous notion that the wealthiest pay into a fund from which they receive no benefit ignores the generous exemptions, including interest paid on mortgages up to $1M and contributions to gold-plated health insurance total $1.3 TRILLION
per year, equal to 8% of GDP.

More than 60% of all tax preferences accrue to the wealthiest 20%,

The government is, in effect, subsidizing large houses, expensive health care
and retirement savings for those that already have money.

As to the decrepit notion that money flows from "job creators" - trickle down economics had 30 years to prove it's mettle, and the country is a wreck.

You want to double down on that, Jack?

The problem is that idiots think a government should run like a business.

http://www.forbes.com/sites/johntharvey/2012/10/05/government-vs-business/

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no regr allia b

6:38 pm on Thursday, December 6, 2012

Great Talking point NL but thats bout it. Same boring rhetoric. This is a world economy and people can move where they want. Keep the vilifacation up and you will get what you want a third world economy failing when the rich and the companies they own go bye bye. When your 401K and all the public pensions invested in those so called rich evil people fail you will be begging for help, but Uncle Sam will be tolotarian then and none will come.

End of argument link miester. You have your opinion and I have mine. Keep your insults to yourself it only proves your credibility is non existent.

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b kcaj

9:02 pm on Thursday, December 6, 2012

Jack-This is approximately one thousand times you have stated you will not respond to Naome and you always go back on your word and keep on asking for more, and making a fool of yourself in the process.

Anyway, if you have such a problem with the FEDERAL deficit, why don't you make a bold statement, and ask the FEDERAL government to reduce your FEDERAL pension?

Who knows Jack-you might start a trend and solve the national debt.

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Leo

8:25 am on Wednesday, December 12, 2012

I believe we are all well aware that taking away the unnecessary tax breaks handed to the wealthy by GWB is not all that is needed, but it is a very necessary and helpful start. Before you attempt to talk down to me, you should read the other components of Obama's plan to reduce the deficit. All very sound ideas which the majority of Americans want carried out. THAT is why he was reelected so let's give his ideas a try.

Rags 1

1:51 pm on Thursday, December 6, 2012

Money debt is a banker's accounting sheet. The wealth of any country is in its ability to produce and export goods and services. Sadly, because of labor costs and greed, we approved NAFTA and actually gave tax breaks that created jobs overseas, manufacturing jobs at that.
Economics 101--giving tax breaks will not intice businesses to run out and hire workers. Workers are hired to sell products or make products to sell for profit.
The business of business is business.
People have to have disposable income to spend, jobs are needed, and then, with a favorable balance of payments, our debt will drop like a rock.
We need to close tax loopholes like futures and commodities trades with oil and
gas that artificially raises the price of gas and cooper that was also exempted that raised the building costs sky high. Congress exempted Oil and Gas. Why?
Close the loopholes and stop allowing tax subsidties to large corporations that have made multi-billions and pay less than you and me on their capital gaines.
Lobby anyone?

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