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Some say it isn't real, some like AFL-CIO Boss Richard Trumpka, union thug extraordinaire, but the so-called fiscal cliff is looming out in front of President Obama as he tries to show some leadership for the first time ever.
So, what is the fiscal cliff everyone seems to be talking about? Well, the big issue we're talking about here is the expiration of the Bush tax cuts that were supped to expire in 2010.
The deal to extend the Bush tax cuts also included a reduction in the Social Security employee payroll tax which is also set to expire.
But that was another stupid move by republicans to agree to this because while the democrats whined that republicans did not care about the poor working man enough to give them a $20 a week boost in their paycheck,
no news organization on the face of the Earth even bothered to mention the fact that this was a tax which directly funded an already bankrupt program.
It is important to stop here and realize what this is that the news never covered. How does Social Security get funded?
It gets funded by employers and employees both contributing 6.2% before the cut, each out of a paycheck to the SS system that has undefended liabilities to the tune of $8.6 trillion.
Got that? There isn't enough money already in the system to pay for it, it is underfunded by more than $8 trillion and somehow both democrats and republicans agreed to put less funds into a system that's already bankrupt.
So what does Obama do to try and avoid this so-called fiscal cliff of tax hikes for everyone? What does he do to offer a balanced approach to this looming problem? He asks for $1.6 trillion in tax hikes over the next 10 years?
Instead of just once again extending the Bush era tax cuts, President thinks he going to come to the bargaining table and ask for a tax increase of $1.6 trillion.
That increase is twice as high as the one he asked for last year when the budget negotiations failed. No republican in their right mind is going to agree to that and Obama knows that. And he calls what he is doing a balanced approach?
Do you think for a minute if Obama and the democrats get that $1.6 trillion tax hikes, they won't spend it lie gambler in Vegas and not reduce penguin one dime? You really think they are going to be responsible with that extra money?
It looks like we are going off the fiscal cliff folks. What do you think that going to do to the stock market and the economy? Are you prepared?