The Fiscal Cliff (It's more like a slope)

[James]

McConnell should fall on his sword, since he failed in his primary mission of defeating Obama's reelection.

Jim

[mtcbrlatrap]

Actually if you remember total income tax revenues peaked in the early 2000's not the late 90s. right before the big drop the income tax revenue was over 1 trillion dollars. If you remember correctly the GOP used this data to indicate that lowering rates even more was the reason for this and that by lowering the rates more the economy would get even larger and more robust and that revenues would continue to increase. This they were saying while they were running up 400-500 billion dollar deficits when we had the best income tax revenues on record. How much of the economic boom that Bush had came from the policies of the moderate Dem's and GOP of the 90s we will never be able to accurately measure but if we want to go back then to me that is better than the early 1980s which saw some of the very worst tax law and code changes and revenues dropped enough so that other GOP presidents like Bush 1 had to raise taxes and get beat. Clinton won raised taxes and things worked out quite well.
When we deviated from the manufacturing wealth creating economy to the paper money economy of Wall street in the early 2000s our slippery slope started and we are still sliding down that one today. When we invest trillions into non productive assets such as residential housing as a way to create wealth and the only time their is any liquidity is when it is sold we have an issue. Couple that with loans for non productive property backed by "funny" money or REITS that were geared to pay some owners more if they lost value than if they gained the recipe for the cliff was complete. Funny how liberal, union oriented, socialist Democrats work mostly in wealth building occupations and conservative, righteous, wealth hoarding GOP members prefer paper wealth and non liquid assets or off shore accounts that allow them the benefits of being a US citizen with much less commitment to being one.

Bryce