Shop Now At Amazon

In plain english, someone explain this fiscal cliff to me

Discussion in 'The Howard Stern Show' started by JoeyG, Nov 10, 2012.

  1. JoeyG

    JoeyG Member

    Reputations:
    6
    Joined:
    May 14, 2012
    Messages:
    402
    Likes Received:
    3
    Is this much ado about nothing? I am pretty much your avg Joe (literally!). Married, two kids age 13,16, with a dog. Avg home ($240,000) underwater (in real estate terms, not hurricane terms). Dual income of just over 100 g's, I work for local gov't, she works in medical field. We're already getting killed with health care premiums. Tell me what this fiscal cliff means for me. TIA
     
  2. Sponsor

    Sponsor

    Reputations:
    0
     
  3. Obi Drunkenobe

    Obi Drunkenobe Well-Known Member VIP

    Reputations:
    692
    Joined:
    Jan 15, 2012
    Messages:
    9,966
    Likes Received:
    40
    I'm far from an expert but I think I heard everybody's taxes will go up 2400 bucks if the dems and repubs can't work a budget before the end of the year.
     
  4. Avery

    Avery Well-Known Member VIP

    Reputations:
    32,416
    Joined:
    Oct 22, 2010
    Messages:
    31,073
    Likes Received:
    2,366
    Taxes go up.

    Government spending goes down.


    Capisce?
     
  5. MyLazyHand

    MyLazyHand Dumber Than Yesterday VIP

    Reputations:
    41,598
    Joined:
    Sep 11, 2010
    Messages:
    7,440
    Likes Received:
    1,627
    There are a bunch of tax cuts in place right now. We're not paying as much as we were years ago (FICA, for example is down 8% below where it was when it was cut to spur the economy).

    There are some other spending cuts in place as a result of deals made in Congress. All of the shit hits the fan at the same time - January 1st.

    If our stupid politicians cannot work out a deal, everyone will be taking home a lot less money in their paychecks, and the government must also slash spending in a lot of areas. The result will be a huge shock to the economy, and we'll face a big recession.
     
  6. Getthepoisonout

    Getthepoisonout Member

    Reputations:
    -366
    Joined:
    Jun 14, 2012
    Messages:
    151
    Likes Received:
    4
    The predictions are that the combined tax increases and spending cuts will result in a 5% drop in US GDP and result in recession. It is important to note that the shock will not happen on January 1st but be a gradual thing so there is no need to panic if a deal is not reached by the end of this year. In fact some economists are urging Obama not to take any deal but wait for the right deal when working with the GOP's in the house. If you want to keep up with this businessinsider is a great website with info on this kind of stuff.
     
  7. Johnny B

    Johnny B New Member

    Reputations:
    -3
    Joined:
    Mar 5, 2012
    Messages:
    2,166
    Likes Received:
    0
    Sell the kids, pimp out the wife.. money problems over.
     
  8. Horff

    Horff Member

    Reputations:
    82
    Joined:
    Feb 11, 2012
    Messages:
    616
    Likes Received:
    20
    Also if you have any investment income the taxes on capital gains and dividends are going to shoot up
     
  9. CowboyX

    CowboyX New Member

    Reputations:
    0
    Joined:
    Apr 3, 2012
    Messages:
    323
    Likes Received:
    1
    Republicans forced this agreement in order to raise the debt ceiling the last time...the same argument that led to our credit rating being down rated. Automatic spending cuts will go into effect in entitlements and the military.

    This is combined with the end of the Bush tax cuts which are set to expire...time to pay the bills.

    Taxes will be going up and less money will be going into the economy from the government could lead to a potential stall of the recovery.

    All, of course, the doom of supply-side economics, or Reganomics, which we are still suffering under and which has destroyed our economy over the past 30+ years.
     
  10. Avery

    Avery Well-Known Member VIP

    Reputations:
    32,416
    Joined:
    Oct 22, 2010
    Messages:
    31,073
    Likes Received:
    2,366
    Except for that part between 1982 to 2007. That part of Reaganomics ruled.
     
  11. StormCloud

    StormCloud Well-Known Member

    Reputations:
    1,385
    Joined:
    Oct 31, 2012
    Messages:
    4,464
    Likes Received:
    106
    Just as the American car companies allowed their costs to spiral out of control when they were operating with little or no competition from overseas, our government built large social programs and defense spending that it thought we could afford back when our labor was not competing with everyone in the world. It costs a lot of money in government compliance costs, social program costs, and just plain wages to operate in our country. Big business is abandoning the safety of operating in our country partially because our military is such a good global police force. This all leads up to the fact that we will never pay off all of the debt that we have accumulated so far. That is OK because the value of our money is really based on pure fantasy. We can probably play the same game we have been playing for a long, long time. We just have to have a little political theater to make the politicians feel relevant.
     
  12. Yomama

    Yomama Member

    Reputations:
    159
    Joined:
    Jun 12, 2012
    Messages:
    433
    Likes Received:
    4
    very well put.
    this all came about because the 2 political parties could not agree on a budget last year. So this fiscal cliff was put together and was meant to force republicans and democrats to cut a deal. The thinking was that if they did not cut a deal - the result would hurt both parties just as badly. Raising taxes - which would upset republicans , and making severe cuts in spending (social programs) which would hurt democrats.

    The point is everyone would lose if an agreement is not reached. And this would effect the entire world with its consequences.

    The shit will hit the fan - they NEED to work out a deal.
     
  13. Mr. Potato Head

    Mr. Potato Head ~Would Like to Play~ Gold VIP

    Reputations:
    10,121
    Joined:
    Sep 15, 2010
    Messages:
    39,259
    Likes Received:
    900
    It's a great theory, however the republicans won't cut a deal because they are too worried about making sure Obama looks bad. If they had to choose between watching the country burn or letting Obama look good, they'd all be grabbing marshmallows. And no, I didn't vote for Obama, but have to say this shit is beyond ridiculous.
     
  14. Avery

    Avery Well-Known Member VIP

    Reputations:
    32,416
    Joined:
    Oct 22, 2010
    Messages:
    31,073
    Likes Received:
    2,366
    You all don't get the "show" politics is? They'll figure it out at *GASP* the 11th hour like they usually do. Don't worry and enjoy the show.

    I read this on some blog. I don't really agree with it. It's a very, very cynical outlook on it:

     
  15. Howards Wig

    Howards Wig Active Member

    Reputations:
    377
    Joined:
    Jan 16, 2012
    Messages:
    489
    Likes Received:
    59
    You have an interesting perspective. I am curious, do you feel our labor should be competing with everyone in the world? A decline in our standard of living seems inevitable as we "equalize the labor market".
     
  16. CowboyX

    CowboyX New Member

    Reputations:
    0
    Joined:
    Apr 3, 2012
    Messages:
    323
    Likes Received:
    1
    You're right, stagnant wages for 30 years have been a big win for profits...the middle class? not so much
     
  17. Avery

    Avery Well-Known Member VIP

    Reputations:
    32,416
    Joined:
    Oct 22, 2010
    Messages:
    31,073
    Likes Received:
    2,366
    You can only crush the world through war and have them dependent on your exports for so long, sparky.

    It is what it is.

    But if purchasing power of a nation's currency is your concern, you feel free to let me know what devalues that. K?

    Not that it matters. blame the dead guy.
     
  18. Tom Doyers

    Tom Doyers New Member

    Reputations:
    -3
    Joined:
    Mar 7, 2012
    Messages:
    4,874
    Likes Received:
    0
    I'm afraid the US fell off the fiscal cliff a few years ago. It will be impossible to dig ourselves out of the debt we are in.

    You can tax 100% of every "rich person's" income and cut all welfare programs at the same time and it wouldn't make a dent -- both sides of the political fence have been played.

    Suckers. :coffee:
     
  19. CowboyX

    CowboyX New Member

    Reputations:
    0
    Joined:
    Apr 3, 2012
    Messages:
    323
    Likes Received:
    1

    Better to protect your industries through tariffs the way Alexander Hamilton suggested, Washington implemented, and which happily funded our country's government (and its amazing investments and accomplishments) for the first 200 years.
     
  20. Avery

    Avery Well-Known Member VIP

    Reputations:
    32,416
    Joined:
    Oct 22, 2010
    Messages:
    31,073
    Likes Received:
    2,366
    I'm sorry.

    What did these tariffs fund way back when?
     
  21. Tom Doyers

    Tom Doyers New Member

    Reputations:
    -3
    Joined:
    Mar 7, 2012
    Messages:
    4,874
    Likes Received:
    0
    Opium farming in Monticello and slave mistresses :cheer:
     

Share This Page