Talk show hosts and other bloviators have spent hours giving their versions of the fiscal cliff. In fewer than 750 words, I’ll explain the truth.
Taxes and the deficit are intertwined. If Congress can’t come up with a plan to solve those problems, the U.S. will jump into the abyss of a deeper recession than existed under the latter years of the Bush–Cheney administration.
Let’s first look at taxes.
The Bush tax cuts expire at the end of this year.
The idea of the cuts was to spur the economy and give what is loosely called the “jobs creators” a slight push to hire more people.
But, the millionaire “jobs creators” held onto their money. They continued to downsize and outsource jobs, making even more money—which they used to buy whatever trinkets that rich people spend money on.