REAL COMPROMISE or CAPITULATION?

By JOHN EYSTER   Monday, December 31, 2012 - 5:28 a.m.

REAL COMPROMISE or CAPITULATION?

“Dems abandon tax demands, but still no ‘cliff’ deal” is the website promotional headline on an article with the full title, “Senate negotiators yet to reach ‘fiscal cliff’ deal as clock winds down.” The article by Lori Montgomery and Paul Kane with contribution by Rosalind S. Helderman.

The key point is that in spite of the fact that the DEMOCRATS have abandoned the $250,000. Threshold for tax increases. NOW, the proposal opens the door to $450,000 a year! Is this COMPROMISE or CAPITULATION? I note that President Obama campaigned clearly on the $250,000 threshhold. WHY would he NOW allow the GOP to protect the wealthy to $450,000?!

As I asserted yesterday in my WE THE PEOPLE blog post, I hope OBAMA does “KEEP THE VETO PEN HANDY!” NOW I think that is the MORE critical. What do YOU think?

I urge you to read the whole Post article, YOU can use this link, “Senate negotiators yet to reach ‘fiscal cliff' deal as clock winds down.”

I am troubled to read that the DEMOCRATS also relented on the politically sensitive issue of the estate tax, promising to stage a vote in the Senate that would guarantee that taxes on inherited estates remain at their current low levels, a key GOP demand. WHY?

BELIEVE IT OR NOT, the article reports that Senate Majority Leader McConnell (R-Ky.) was still holding out to set the income threshold for tax increases even higher, at $550,000, according to people close to the talks in both parties. And he was protesting a Democratic proposal to raise taxes on investment profits for households with income above $250,000. Again, ALERT TO PRESIDENET OBAMA, “KEEP THE VETO PEN HANDY!” What do YOU think?

Read the article to gain information as to the Reid – McConnell game of “chicken.” HELP!

The key is identified by the Post article asserting that many Republicans are very troubled by a deal that would require them to vote for a significant tax increase for the first time in more than 20 years.

The article clarifies, “Republicans would be more open to the tax hike if it was used to reduce the federal budget deficit but remained resistant to raising taxes to expand government spending.”

Be sure to remember this key point made by the article as to the REALITY of the current situation vis-à-vis the “FISCAL CLIFF,” “…on the central issue of expiring tax cuts enacted during the George W. Bush administration, Democrats proposed to let the cuts expire on income over $450,000 a year for couples and $360,000 for individuals — a big jump from their original demand of $250,000 for couples and $200,000 for individuals.”

And, “Republicans were insisting late Sunday on even higher thresholds, arguing that income under $550,000 for couples and $450,000 for individuals should be completely protected.”

Keep in mind that our US Senate’s rules make the process very demanding even after there is an “agreement.” The article underscores, “Even if the leaders forge an agreement, the midnight deadline would be daunting to meet. Reid and McConnell would require the consent of all 100 senators to dispatch with the normal parliamentary procedures and complete debate and vote in hours rather than days.”

Add, “And Senate passage would not guarantee an easy ride in the House, where Boehner’s conservative flank has shown deep resistance to any tax hikes. The speaker has indicated he does not want to approve a bill with mostly Democratic votes and a sliver of his 241-member Republican conference.”

Will the HOUSE really wait until tomorrow – New Year’s Day after we go over the FISCAL CLIFF? The article reports, “Some lawmakers said they were anxious the Senate would adopt a bill Monday and expect the House to act within a matter of hours. Instead, House members may push to delay a vote until Tuesday. That would mean missing the fiscal cliff deadline, but with U.S. financial markets closed for the New Year’s holiday, some members reasoned that the economy would be unlikely to suffer.”

I hope you will add to your awareness of the crisis vis-à-vis the “fiscal cliff” Chris Cillizza’s OpEd column, “The Fix,” “As ‘fiscal cliff’ looms, Republicans have no political incentive to make deal with Obama.”

Cillizza reminds us, “Amid the last-minute wrangling over a ‘fiscal cliff’ deal, it’s important to remember one overlooked fact of the 2012 election: Republicans in the House and Senate have absolutely no political incentive to compromise with President Obama.” I encourage you to review the data which he analyzes helpfully.

After analyzing the data Cillizza asserts that ONLY President Obama does NOT have to keep at least one eye on the next election race.

He concludes, “That mentality means that for the vast majority of Republicans in Congress, a deal is more dangerous than no deal. A deal creates the possibility of a primary challenge from their ideological right in districts and even states that, by and large, went heavily against Obama in November. No deal means they might — with the emphasis on “might” — face some blow back from constituents who want them to get something done for the good of the country and put the partisanship and politics aside.

“And so, if you are wondering why congressional Republicans won’t, in the words of Obama, just “take the deal,” now you know. They have every political reason not to. “ What do YOU think?

I PRAY for YOU - each and every one - a meaningful & inspiring, fulfilling & blessed NEW YEAR 2013!

Here we go...

Mr. E.

John Eyster lives in the Edgerton area. He is an adjunct professor of political science at UW-Waukesha and an advocate for democracy/civics education in Wisconsin high schools. John is a community blogger and is not a part of The Gazette staff. His opinion is not necessarily that of the The Gazette staff or management.

reader COMMENTS
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(41)
donnaw
Jan 4, 2013 at 6:04 a.m.
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kio....you got it!

kiowamohican
Jan 4, 2013 at 2:33 a.m.
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As we all knew, a meaningless deal would be reached. Well, not so meaningless to the lobbyist, of course. NASCAR, Hollywood, and countless others got there usual kick backs, and tax breaks!
.
Now onto the next big joke...THE DEBT CEILING, which will be another big farce that Eyster will pontificate endlessly about with daily updates, and worthless links. Of course one should all ready know how that coming "crisis" will also end...A last minute "deal" will be passed....In which they of course increase it, have the fed create more $$ to pay for it, kick the can down the road, and add TONS of pork in the last minute bill for all the big oligarchy players who donated boat load to get them into office.

donnaw
Jan 3, 2013 at 11:48 a.m.
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It just keeps getting better...notice all the pork in the fiscal cliff bill? Millions to such things as NASCAR, rum producers, electric motorcycles and of course the place that needs it the most....HOLLYWOOD!

garyprimer
Jan 3, 2013 at 10:36 a.m.
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With all of the answers to everything,
I just cannot understand how you are not in charge of the whole world.
I guess that it is just our loss.
Somehow we must carry on.

wislady
Jan 2, 2013 at 5:48 p.m.
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Badgerlvr

Any "Sandy" bill should be devoid of pork. Giving millions to fisheries in Alaska, is just one example. A new roof for the Smithsonian Museum, another.They were right not to vote for it, and when the pork gets cleaned out, it will be passed. Christy should ask his BFF, who vowed to make sure the storm victims wouldn't have to go through all the red tape. What happened to that promise? This is Obama's Katrina, and his response to it pathetic.

It has already been documented that help and donations given to them, were not being used, or were misused.

Maynard
Jan 2, 2013 at 4:08 p.m.
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Long post but please take time to read and digest. 2011 Tax Facts: Personal exemption 3700. Standard Deduction if not able to itemize was 5800 for a single person and 11600 for a married couple. So 9500 deduction for single person and 19000 deduction for married couple. Page 98 of 2011 1040 instructions show that effective tax rate JUMPS from 15 to 25% for single taxable income of 34500 (total gross income of 34500 + 5800 = 40300. JUMPS from 15 to 25% for married couple taxable income of 69000 (total gross income of 69000 + 19000 = 88000). BTW. In both individual and married case the effective tax rate is nearly 13.8% on the income prior to the JUMP. Rate continues at this 25% up to 83600 for individual and 139350 for a married couple. Then gradually took additional steps of 28, 33, and 35%. MY POINT: People get your head out of the sand and realize that both parties in our government are heavily taxing the bulk of the middle class while hiding it with smoke and mirrors by creating this class warfare envy. I do not have the numbers but am guessing a good portion of this country that is not receiving government aid are gettting caught in this JUMP to 25%. And both sides claim they are trying to help the middle class ??? I am not buying it. They are helping the poor and the rich at the expense of the middle class. IMO

Badgerlvr
Jan 2, 2013 at 12:11 p.m.
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donnaw: I agree. I was hoping that we'd "go over the cliff" as it might bring things back into focus. Everyone would then understand the situation at hand. What's your response to my 10:27 post?

Third_Eye
Jan 2, 2013 at 11:23 a.m.
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Badgerlvr Jan 2, 2013 at 10:27 a.m. Diversion.
"the act or an instance of diverting from a course" (or subject)

donnaw
Jan 2, 2013 at 10:45 a.m.
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Badger...the fiscal bill just passed added ANOTHER $4 trillion to our debt. Where will all this end? I am ashamed of our whole congress and administration. They are cowards.
Badger..I await your answer to my previous post...why keep taxing the rich when we keep spending like drunken sailors. We should have let the new tax rates go up for everybody so everybody pays their fair share.

Badgerlvr
Jan 2, 2013 at 10:27 a.m.
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Representative King (R-NY) said this morning on CNN, that the GOP has lost it's feeling toward family by not voting on a bill that would have helped the thousands of people affected by Hurricane Sandy. He and other GOP rep's in New England are upset at the lack of empathy toward the victims. I find it interesting that yesterday's "over the cliff" vote has split the GOP. Boehner voted in favor, Cantor against. It appears that the GOP is going over the cliff. I await your comments donnaw, wislady, et. al.

donnaw
Jan 2, 2013 at 10:09 a.m.
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Badger...also "their fair share"... They top 10% earners paid 71% of the federal income taxes and earned 43% of the income while the bottom 50% paid 2% of the taxes and earned 13% of the income. So who is not paying their "fair share?"
And even if we taxed the rich 100% it would not begin to pay off our debt. Slamming the rich is a red herring by the left to deflect from the issue of out of control spending. We have slippery fish on both sides of the aisle who just want to avoid the real issues. We have not done any favors for our children and grandchildren.

Third_Eye
Jan 2, 2013 at 9:06 a.m.
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"Would you at least agree that the wealthy need to contribute more?" (Badgerlvr)
No.
This kind of thinking is the root of the present problem. As a country we used to applaud people for succeeding in life and we worked to do the same.
Today many have turned to wanting the fruits of the successful for themselves. "Tax the rich" is the battle cry as if the rich were people on another planet, not your fellow citizens who worked hard to get where they are.
The anecdotal evidence presented by the liberals is always a 'rich' person that inherited money. The example of 'rich' is never the people that took risks, worked long hours, and had worries beyond what we can imagine.

Badgerlvr
Jan 2, 2013 at 8:39 a.m.
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donnaw: I agree wholeheartedly that democrats needs to reign in entitlements. What I don't understand is how you and the rest of the conservatives continue to allow and encourage the ultra rich (democrats included), the luxury of tax breaks. I agree that spending has to decrease and some oversight is necessary. Would you at least agree that the wealthy need to contribute more? If it were up to me (which it's not), I'd throw the entire Congress/Senate out on their ear and start over. It sounds to me like you want no government at all. How can one say "ANARCHY" nicely?

donnaw
Jan 2, 2013 at 5:44 a.m.
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Badger...with you it's always the other viewpoint that is "misguided." What conservatives want is less govt always bailing out people able to do it themselves. Notice, I said able. Extending the unemployment benefits another year is an example. If you haven't found a job by now, you need to look a little harder. Entitlements just keep growing and we are told unemployment rates are going down, the economy is getting better, etc. but it feels good to give freebies. "look at us! Aren't we wonderful!" Give a person a fish and it fills their stomach for bit, but if you teach a person to fish they can support themselves. Maybe because when times were rough when we were growing up and there was no "freebies" from the govt, we learned to be self reliant and knew if we wanted to eat we better work.

Badgerlvr
Jan 1, 2013 at 9:23 p.m.
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wislady: There you go AGAIN, saying that I'm accusing conservatives of being greedy. Show me where I said that. I too grew up in the '40's with more children in our house than you had. Not only did we have ration stamps, we also had no indoor plumbing. Am I sorry for the way I was raised? Not in the least. I do however feel sorry for your misguided views.

wislady
Jan 1, 2013 at 4:31 p.m.
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"IMO, ANYONE who wants to help the rich get richer and the poor get poorer has got to be a member of the 1%"

The Obama WH is a perfect example of the rich getting richer from the cronyism we have seen. Have you seen the Obama's with anyone who is not rich, or a movie star? He didn't get all his campaign money from the people on food stamps, just their votes.

"I was raised to be charitable and kind to the less fortunate. Greed was not part of our family vocabulary."

Many of us can say the same, we are a generous nation. When you grow up in the 40's in a family of 6 children, and see your parents with the rationing books, you learn early about not being greedy. Most everyone I know is very charitable to those in need, and your shallow attempt to paint conservatives as "greedy" is rather silly.

Perhaps we will see the return of rationing on all items?

http://www.ameshistoricalsociety.org/exh...

billnewbie
Jan 1, 2013 at 4:02 p.m.
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When Governor Walker and the Republicans won total control of the State government, John bemoaned it saying that splitting government power between the parties is the best way to go. I guess he only means that when Republicans have control since he's obviously perturbed that Federal control is split. After all, compromises that suit nobody are usually the result of parties splitting power, isn't it John?

I do agree though that the President should veto anything that Congress sends him. Then it will be clear to everyone just who it is that refused to compromise, preferring the cliff to working with Republicans. It might be a bit tougher for him to pin the blame on Republicans after he vetoes the compromise he's been asking for. But I'm sure that his spinmeisters and the main stream media (pardon the repetition!) will push that theme just the same. And his loyal minions, a bunch of whom post on the Gazette, will gobble it up (with the usual orifice, I presume!).

Honorfirst
Jan 1, 2013 at 1:34 p.m.
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Let's not fall over the cliff, LET'S RUN TOWARD IT WITH ENTHUSIASM AND LEAP OFF IT! It will be a bit less take-home money, but at least we will ALL pay more taxes. This includes people that for years have LIVED OFF THE SWEAT AND SUCCESS OF OTHERS and I think IT IS ABOUT TIME THEY PAY THEIR SHARE! There will be approximately 30 billion dollars less spent on the "Chronic unemployed", cuts to the defense budget will BE MATCHED BY ENTITLEMENT SPENDING CUTS and ultimately when discussions are held on the debt ceiling, we need to demand even more cuts in entitlements. This could prove to be a very uncomfortable 4-10 years, but it will get our house in financial order. Think of all the items that will be put up for sale that we will be able to pick up dirt cheap! If you have worked and saved throughout your life, it will be a "buyers market" as people become more desperate for money.
As for Mr. Eyster's viewpoints and ramblings, they lose relevancy as they are ALWAYS slanted toward favoring the left and chastising the right. John, as an adult and educated person, you should know it is not as one-sided as you claim it to be. Seriously, I could have just about wrote your article for you without reading it, knowing how you would present your viewpoint. The refusal of the Democrats to compromise based on the "election results" is about as ridiculous as it gets. ANY Republican that votes for this deal, will not only lose all credibility with their base, but will have to begin looking for a new line of work .

RetiredAirForce
Jan 1, 2013 at 10:36 a.m.
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Perspective, for those always willing to spend others in their very progressive fashion.

http://www.zerohedge.com/news/2013-01-01...

Badgerlvr
Jan 1, 2013 at 10:26 a.m.
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IMO, ANYONE who wants to help the rich get richer and the poor get poorer has got to be a member of the 1%. I was raised to be charitable and kind to the less fortunate. Greed was not part of our family vocabulary. I'm certainly not jealous of those who have more but feel we all can contribute to mankind. I too have all of my possessions paid for. Your accusing me of being "hateful" tells me a lot about you. Maybe you should look in the mirror and take a GOOD look. Not everyone has it as good as you (or me).

wislady
Jan 1, 2013 at 10:01 a.m.
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The Senate "deal" is repulsive.

It cuts only $15 billion in spending while increasing tax revenues by $620 billion—a 41:1 ratio of tax increases to spending (according to the CBO).

Besides, we will be doing this again in 3 months.

Where is the BUDGET, democrats?

vnvet7071
Jan 1, 2013 at 9:17 a.m.
(This comment was removed by the site staff.)
wislady
Dec 31, 2012 at 4:44 p.m.
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Badgerlvr

I am not a 1% person, but I admire others who have gotten their by their own hard work and persistence. I also have to live within my financial means. I do have a house and cars that are paid for, but I doubt that makes me one of the "elite" you are so jealous and hateful of.
Whatever I have, my husband and I have both worked for....a combination of of more than 90 work years. I owe you NOTHING.

I wonder how you come to the conclusions you do.

Maynard
Dec 31, 2012 at 2:05 p.m.
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hdonlybob: Agree

joker
Dec 31, 2012 at 12:48 p.m.
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Estate tax at a low level. Are you kidding 35%? Say good bye to all family farms. Most are worth a lot of money because of the cost of the equipment needed to run them. However most do not have that kind of money sitting around to pay such an enormous tax like the Democrats are asking for. 40%

garyprimer
Dec 31, 2012 at 12:24 p.m.
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At least it is the same orifice.

Northman
Dec 31, 2012 at 11:51 a.m.
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Interesting how when it comes to Walker, compromise is an absolute, positive must-do, and any failure to compromise significantly makes him a really horrible person. When it comes to Obama, compromise is a dirty word, something he shouldn’t consider, and if he fails to stay the course, he’ll be a really horrible person. Doesn’t it get painful, talking out of both sides of your mouth like that?

kiowamohican
Dec 31, 2012 at 10:42 a.m.
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We all know a MEANINGLESS compromise will eventually be made. One that will do absolutely nothing to reduce deficit spending or debt accumulation. Warren Buffet is of course right. All one needs to do as always is follow the $$$. Markets are not going down much at all, because Buffett, and the big wall street players in this oligarchy we live in, all know that they will ultimately settle on a solution to keep the giant pyramid scheme going. The 'pyramid scheme' of course meaning that you simply have King Ben and the fed create more $$ to prop up markets and fund government. All the squabbling is simply a SMOKE SCREEN to keep partisan clowns in the public to blame 'the other side', and blind the general public from seeing how screwed they all really are down the road.

garyprimer
Dec 31, 2012 at 10:26 a.m.
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Go back to 250k after the deadline.
These boobs deserve no concessions for
failing to negotiate.

hdonlybob
Dec 31, 2012 at 9:37 a.m.
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This pathetic situation is just one more example of what is wrong with our society..
Democrats despise Republicans, and Republicans despise Democrats...and so on.
Meanwhile we the people suffer, due to their total irresponsibility.
And they ALL should be embarrassed. What ever happened to good old courage ??
None of them give a rats butt about you and me. And every vote they make is calculated by their personal re election chances.
And they wonder why people like me give them a less than ~10% approval ?????

donnaw
Dec 31, 2012 at 9:36 a.m.
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Badger...I am not in the 1% but I am not jealous of those who are. I earned my money the old fashioned way...hard work, got an education, didn't spend more than I earned, didn't t have kids until I was married and could afford them, saved for my retirement, and was responsible for my own well being. Along the way, volunteered and followed a healthy living style. I am at a good place in life because I made good choices and worked hard.

NVgrf
Dec 31, 2012 at 9 a.m.
(This comment was removed by the site staff.)
Badgerlvr
Dec 31, 2012 at 8:43 a.m.
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For the first time I'm beginning to understand the stance of wislady, donnaw, and RAF. It's clear that they're members of the 1%.

johnnyreb6977
Dec 31, 2012 at 8:43 a.m.
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The republicans are not the only ones to blame eyster!!!!!! There is plenty of blame to go around for the democrats also!!!!! Wasn't it the democrats who couldn't come up with a balanced budget proposal for how many years????? It's people like you eyster who are to blame for voting a straight party ticket and not using common sense when voting! Try using some common sense for once eyster, it's a wonderful thing and you just might find that it may do you some good! I won't hold my breath on that one though as you are such a hypocrite and you feel that your way is the only way and everyone else is wrong! Wake up and smell the coffee eyster!!!!!! You are supposed to be a man of higher education after all!!!!!!! Time to prove that you are both a man and a man of higher education! Quit wasting taxpayers money and do your job by actually teaching the whole subject of politics and not just your far left sided slant all of the time!!!!!!!!!

wislady
Dec 31, 2012 at 7:34 a.m.
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No matter what happens with a fiscal cliff "deal"....

Democrats’ $1 Trillion Obamacare Tax Hike to Hit American Producers on January 1

"And, that doesn’t include the tax hikes you can expect if Congress and Obama do not reinstate the Bush tax cuts before January 1."

http://www.thegatewaypundit.com/2012/12/...

RetiredAirForce
Dec 31, 2012 at 7:03 a.m.
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Wow John just 2 months ago you wanted a grand compromise and wanted both sides to take a big bite to get a deal done. Now you are taking partisan swings claiming capitulation...seriously you have no conviction.

http://gazettextra.com/weblogs/we-people...

donnaw
Dec 31, 2012 at 6:27 a.m.
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WHERE ARE THE SPENDING CUTS JOHN? Obama will use the tax increase to pay for new proposals, not spending cuts. These tax cuts are worthless and will do nothing to stop the growth of our debt. Diversion, diversion, diversion.

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