I say let’s go over the “fiscal cliff.” I’m not sure I see that much of a downside to going over. The Republicans will get blamed and rightly so because they don’t want their lobbyist friends to have to pay more taxes. The defense budget will get cut by 10 percent, and rightly so in this economy. We spend more on defense than the next 10 countries combined. All government spending will get cut by 10 percent. That ought to include salaries of Congress members. I think they ought to get paid based on how much product they put out, like the rest of us.
The Republicans should be begging Obama to only raise taxes on those earning over $250,000. If we go over the cliff, the wealthy will get hit hardest on capital gains and interest earned on dividends.
If you make a lot of money from buying and selling investments, or if a lot of your income comes from dividends on those investments, and you can’t hide enough of it in the Cayman Islands or Swiss accounts, you are not going to like going over the cliff. The Republicans like to say that raising taxes on the wealthy will hurt jobs.
Just remember, these tax rates have been in effect since 2001. If these rates are going to stimulate jobs, where are they?