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12/30/12

HAPPY NEW YEAR TO ALL

You all know about the republican’s pledge to not raise taxes.  If a deal is struck before Jan 1, income taxes will be raised and the republicans will look bad because they violated their tax pledge (can’t have that).  On Jan 1, the Bush tax cuts expire and all tax rates go up.  So if a deal can be reached after Jan 1 the end result is that income taxes will be lowered.  So the republicans have got this figured out, let the Bush tax cuts expire and then lower income taxes.  How about that . . . the republican look good by keeping their no new taxes pledge.  Seems totally logical to me . . .  in a weird kinda way.

I call these guys (democrats. and republicans) clowns with good reason.  It’s so much fun watching American politics at work.  As Will Rogers said, we have the best politicians that money can buy.

Now the flip side of this situation is that no deal is struck for weeks (months???).  WOW.  Wall Street and investors around the world will go nuts because of Congress’ inability to govern during a critical period.  Same thing happened during the 2011 debt crisis.  The stock market declined 21% as a result of that mess.  I’m old and remember when the debt ceiling used to be raised without any discussion by either side.  Of course we hadn’t achieved 3rd world debt status back then.

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This entry was posted on December 30, 2012 at 5:11 PM and is filed under UPDATE. You can subscribe via RSS 2.0 feed to this post's comments. You can comment below, or link to this permanent URL from your own site.