Add this Page to Facebook!   Submit to Twitter   Submit to Reddit   Submit to Stumble Upon   Pin It!   Fark It!   Tell A Friend  
Printer Friendly Page Save As Favorite Save As Favorite View Article Stats
2 comments

OpEdNews Op Eds

Fiscal Cliff Over, Now the Attack on the People Begins

By (about the author)     Permalink       (Page 1 of 1 pages)
Related Topic(s): ; ; ; ; ; ; , Add Tags Add to My Group(s)

View Ratings | Rate It

Headlined to H2 1/2/13

Become a Fan
  (48 fans)

opednews.com

Cross-posted from Global Research


Last night, Congress passed a watered-down fiscal cliff package that will raise taxes on everyone, but the worst is yet to come, and this "deficit cutting" measure contains some surprises.

Economist Jack Rasmus highlights Obama's comments after passage which signal what we can expect:

"I am very open to compromise ... Medicare is the biggest contribution to the deficit." In fact, Medicare does not contribute to the deficit because it is funded by a separate tax, but Obama has signaled -- expect cuts to Medicare and Medicaid. Obama has been laying the ground work to cut social insurances since 2010.

The "deal" only cut the deficit by $620 billion of the bi-partisan goal of $4 trillion so there are a lot of budget cuts ahead and they will not come from the military or national security state, they will come from the necessities of the people. Even if the U.S. had gone over the cliff, cuts to the military were minimal. DoD cuts scheduled to take effect in 2013 were only $24 billion, according to the Congressional Budget Office, much less than the oft-mentioned $500 billion reported in the media. The $500 billion are cuts over 10 years, mostly backloaded to the out years. Thus, these are cuts the military would likely never see.

The reason that the deal cut the deficit so little is because Obama backed off his campaign promise to raise taxes on the top 2%, and instead only repealed the Bush tax cuts on the top 1.5% -- those earning over $400,000. As a result, rather than raising $1.2 trillion in revenue, the deal only raised $600 billion and part of that came from working people as payroll taxes were reinstated. The result will be more cuts on the rest of us -- so later this year the bi-partisan cut to corporate tax rates can be passed.

The "deal" was not all about cuts, as Matt Stoller writes, the deficit cutters were very generous to Goldman Sachs: "Goldman got $1.6 billion in tax-free financing for its new massive headquarters through Liberty Bonds." Another gift to big finance and multinationals: a provision was included that allows U.S. multinationals to not pay taxes on income earned abroad at a cost $1.5 billion to the budget.

And, the people will need their circuses as austerity hits, so NASCAR got $43 million in tax breaks over two years to build race tracks and associated facilities. Hollywood studios received $150 million in tax breaks for 2010 and 2011.

People facing foreclosure and living in underwater houses lost the small foreclosure relief programs that existed and tax laws were set to treat any write-down on a mortgage as income (i.e. if a mortgage was written down by $100,000 the taxpayer had to pay taxes on $100,000 income) but the cliff deal delayed that tax change for one year.

Taking care of ill family members at home was dealt a set-back with a provision in the Affordable Care Act designed to let millions of elderly and disabled people get help at home rather than be placed in institutional care being repealed.

There was good news for Green energy in the deal. Roughly a dozen provisions would extend credits and incentives for plug-in electric vehicles, energy-efficient appliances, biodiesel and renewable diesel, and other alternative energy initiatives.

Budget debates are how government sets its priorities and the fiscal cliff package shows where government's priorities are: low taxes on the wealthy and corporations, giveaways to business and take-aways from the American people.  People can expect much worse in the months to come unless they get organized and mobilize against austerity in a big way.  Elected officials will need to be scared by the public in a big way to stop the bi-partisan assault on the people.

This article was taken from the weekly e-newsletter of Its Our Economy.  Sign up for the newsletter at www.ItsOurEconomy.US.

 

http://www.ItsOurEconomy.us and http://www.ComeHomeAmerica.U

Kevin Zeese is co-chair of Come Home America, www.ComeHomeAmerica.US which seeks to end U.S. militarism and empire. He is also co-director of Its Our Economy, www.ItsOurEconomy.US which seeks to democratize the economy and give people greater (more...)
 
Add this Page to Facebook!   Submit to Twitter   Submit to Reddit   Submit to Stumble Upon   Pin It!   Fark It!   Tell A Friend
The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact Author Contact Editor View Authors' Articles

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Why I Was Among Eight Health Care Advocates to Get Arrested in the Senate Yesterday

The Seeds of Rebellion Are Taking Root, and Protests Against Injustices Are Blooming Across the Country

BREAKING NEWS: BIG BREAKTHROUGHS FOR SINGLE PAYER HEALTH CARE

Ron Paul Press Conference Unifies Third Party and Independent Candidates Around Four Key Positions

Paperless Electronic Voting Machines Flipping Votes from Obama to McCain in West Virginia

Election Theft for 2008 Already Underway

Comments

The time limit for entering new comments on this article has expired.

This limit can be removed. Our paid membership program is designed to give you many benefits, such as removing this time limit. To learn more, please click here.

Comments: Expand   Shrink   Hide  
1 people are discussing this page, with 2 comments
To view all comments:
Expand Comments
(Or you can set your preferences to show all comments, always)

This is EXACTL... by Alan MacDonald on Thursday, Jan 3, 2013 at 12:15:00 PM
click hereBest, Alan... by Alan MacDonald on Thursday, Jan 3, 2013 at 12:21:28 PM