MARKETS TANK ON FISCAL CLIFF FREAKOUT
Like yesterday, markets seemed to move on every fiscal cliff headline. Unlike yesterday, stocks tanked.
First the scoreboard:
President Barack Obama called on Senate leaders to come to a bipartisan agreement to avert the year-end fiscal cliff following a meeting with Congressional leaders at the White House.
“The hour for immediate action is here,” Obama said during a press conference at the White House. “It is now.”
Obama said he was “modestly optimistic” about an agreement. A bipartisan deal now lies in the hands of Senate Majority Leader Harry Reid and Minority Leader Mitch McConnell, who will try to hash out an agreement on Saturday.
“This is deja vu all over again,” Obama said. “The American people are watching what we do here and obviously their patience is already thin. The American people are not going to have any patience for a politically self-inflicted wound to our economy.”
Donald Trump: GOP Has ‘Nuclear Weapon’ In Fiscal Cliff Talks (VIDEO)
Billionaire businessman Donald Trump said he thinks the debt ceiling is Republicans’ “nuclear weapon” in the ongoing negotiations over the fiscal cliff.
“The Republicans have a very strong negotiating position,” Trump said on a call to “Fox and Friends” Monday morning. “The debt ceiling’s coming up in another month and a half, and the debt ceiling is going to be devastating to Democrats if the Republicans want to play that card.”
“The Republicans are sitting there with a nuclear weapon, so to speak,” Trump continued.
Bill Black: GOP threatens to use debt ceiling as leverage, creates conditions for more austerity measures by Obama
Obama Negotiating? NO! He’s Demanding HIS Way 100%–THREATENS To Use State Of The Union Speech Outright Lie To America About Boehner.
Obama like to look like he’s “negotiating” with the Republicans. The reality is that he’s demanding his way like a dictator.
Mr. Boehner, irritated with the White House, was finding it hard to keep his troops in line as details of his negotiations with Mr. Obama leaked out. In the speaker’s office just off the Capitol’s majestic rotunda that afternoon, he told his top lieutenants that he was already thinking about a pared-down backup plan. “In the absence of an agreement, ‘Plan B’ is the plan,” he told his deputies, according to a script he read them that afternoon.
A review of the negotiations, based on interviews with a dozen aides and lawmakers, suggests the problems lay in Mr. Boehner’s inability to coax his rank-and-file to support a deal that raises taxes on higher-income Americans. Another factor was what Republicans saw as President Obama’s unwillingness to bend when a deal was in sight, jamming the speaker with a deal his party couldn’t swallow.
Mr. Obama repeatedly lost patience with the speaker as negotiations faltered. In an Oval Office meeting last week, he told Mr. Boehner that if the sides didn’t reach agreement, he would use his inaugural address and his State of the Union speech to tell the country the Republicans were at fault.
At one point, according to notes taken by a participant, Mr. Boehner told the president, “I put $800 billion [in tax revenue] on the table. What do I get for that?”
“You get nothing,” the president said. “I get that for free.”
After the election, Boehner aides tried to shape the debate by offering early concessions, including that the GOP would agree to raise new tax revenue. A speech Mr. Boehner planned to give was rewritten 18 times and included input from top Republican leaders.
He is offering NOTHING…nor are any Democrats.
Obama hasn’t given an inch in these supposed “negotiations”, and Obama’s plan cuts more from Welfare, Food Stamps, Medicare, and Social Security than the Fiscal Cliff does…
Also raises taxes across the board…
Watch Maria Bartiromo call them out on this the other day.
This is funny….and kudos to her for doing it.
(video at link)
CNBC’s Maria Bartiromo Attacks Ben Cardin Over Fiscal Cliff Talks
Obamacare contains twenty new or higher taxes. Five of the taxes hit for the first time on January 1. In total, for the years 2013-2022, Americans face a net $1 trillion tax hike for the years 2013-2022, according to the Congressional Budget Office.
The five major Obamacare taxes taking effect on January are as follows:
The Obamacare Medical Device Tax: Medical device manufacturers employ 409,000 people in 12,000 plants across the country. Obamacare imposes a new 2.3 percent excise tax on gross sales – even if the company does not earn a profit in a given year. In addition to killing small business jobs and impacting research and development budgets, this will increase the cost of your health care – making everything from pacemakers to artificial hips more expensive.
The Obamacare Flex Account Tax: The 30-35 million Americans who use a pre-tax Flexible Spending Account (FSA) at work to pay for their family’s basic medical needs will face a new government cap of $2500. This will squeeze $13 billion of tax money from Americans over the ten years. (Currently, the accounts are unlimited under federal law, though employers are allowed to set a cap.)
There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children. There are several million families with special needs children in the United States, and many of them use FSAs to pay for special needs education. Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education. This Obamacare tax provision will limit the options available to these families.
The Obamacare Surtax on Investment Income: This is a new, 3.8 percentage point surtax on investment income earned in households making at least $250,000 ($200,000 single). This would result in the following top tax rates on investment income:
|2013+ (current law)||23.8%||43.4%||43.4%|