November 21, 2012
On the upcoming political battle over the “fiscal cliff”…
Not only are we not going to avoid the cliff; it is my contention, I say to you today that the Obama agenda is to go off the cliff. He wants the cliff. And he wants it for two reasons: (A), because of the genuine economic damage that it will do, and (B) for the politics of it. What happens? If we go over the fiscal cliff, what happens? Taxes go up. Simply by virtue of the expiration of the Bush tax rates. Taxes go up. They go up on everybody, not just the rich. And as is also a part of the fiscal cliff, defense spending gets cut, which Obama wants. If you don't believe me, don't forget that Obama has doubled his request for tax revenue from $800 billion to $1.6 trillion. That's his opener in his negotiations with the Republicans to stop going over the fiscal cliff. I'm here to tell you, using my intelligence guided by experience, there will not be any entitlement cuts as part of any cliff deal, because Obama does not want any. The Democrats do not want any. There will be no cuts in the entitlements. And the fact is, I don't think anybody in Congress wants any cuts in entitlements, either, if you get down to brass tacks. So what's gonna happen is this: We'll go over the cliff. We won't get a deal before we go over the cliff. The tax increases, by the time we have a new Congress sworn in, we're gonna have tax increases, and we're gonna have military cuts. This is going to happen, I fear.