December 5, 2012
On the ongoing “negotiations” between the Republican House leadership and President Obama to supposedly avoid the fiscal cliff…
There aren't any spending cuts, even if they claim there are because of the current services baseline. All there will ever be until that's fixed is cuts in the rate of growth of spending. But there won't be any real spending cuts. And the Republicans showed today that they're not even interested in it. And now they're ceding the language. So now deductions are loopholes. You know what that sets up? That sets up the premise that 100% of income is subject to taxation and that everything that we might deduct from our overall gross earnings is a loophole, not a deduction, not a legitimate deduction. They just gave that away by conceding on the language here. A loophole is not a deduction, but it has become one. I mean, stop and think. When you think of a loophole in the tax law, what do you think of? You think of an unintended error that allows people to get away without paying their taxes. That's what you think a loophole is. Well, sorry. Now a standard, legal itemized deduction and everyone one of them have become loopholes. And such, they are subject to elimination. So now the premise of 100% taxation, the premise is now on the table. And all that means is that all money is Washington's, and what we end up with is totally up to their discretion and their big-heartedness or mean-heartedness, what have you.