Ireland has aksed for, and received an economic bailout from other Eurpoean countries to keep it from going completely insolvent. A crash in real estate prices has left the government with a huge shortfall in meeting its social program commitments. There simply isn't enough money to pay for all the handouts the government gives, and there won't be for many years.
Ireland follows Greece in doing this. Portugal, Italy, and Spain are in danger of needing bailouts as well. The money needed for the bailous is coming from other nations, in the EU, the United States, and through the IMF. The drain of their cash to give to these countries is creating a strain on the nations that are istill in relatively good shape, phsing them into problem areas.
Spain appears to be the lynchpin. If it goes under, the whole EU may implode. France and Germany will not have the will or capital to save everyone else. England is facing massive problems. The riots by college students this week are because the government addressed college tuition prices. The government took away many of the subsidies it gives to finance students through university. It had to to cut their budget numbers. The effect is that the average student who was using the government subsidies will have to pay 3 times more than what they are now in order to continue their education.The financial situation in England is dire. Whole sections of their defense establishment will be cut to trim expenses, leaving the former Empire relatively helpless to defend itself. Why is England having so many problems - Socialist medicine and other government handouts/entitlements that spend far more than the government takes in.
Obama reached a deal with Republicans to extend the Bush tax cuts for 2 years. 2 whole years. The result has been a revolt by the far left and most of the Democrats in the House, who see this as Obama caving in to the rich. All Dems wanted the so-called middle class tax cuts to remain in place (rebranding them as the Obama tax cuts). It is tax rate for the 'rich' that has got their panties in a wad. Democrats in the House conspired amongst themselves in caucus (no Republicans allowed) to block Obama's proposal from even reaching the floor of the House for a vote. Reports from multiple news sources say the meeting was angry, loud, and vindictive. One unnamed Democrat Rep was said to have jumped to his feet during the proceedings and shout "F**K OBAMA" at the top of his voice.
The far left has the most liberal/social President in office the country has ever seen. He is their poster boy. And now, he does one thing they don't like, and they are jumping all over him. F**K OBAMA ... who would have predicted that 6 months ago?
Obama, Democrats, and a few moderate Republicans are freaking out at the extension of the Bush tax cuts for the 'rich'. They say it will cost our government over $700,000,000,000 over the next two years. BULLSHIT. The extension of the tax cuts only keeps the tax rate at the level it has been for the past 8 years. It is not aadditional cuts. No one is going to see more money in their pocket from this extension. What it does mean that $700,000,000,000 will stay in our pockets, rather than being stolen from us by the Federal Government. That doesn't COST the government anything. It prevents them from spending that money, money they don't have.
Obama and the Dems have pushed through their huge spending bills by using CBO numbers to help project the cotst of those bills as much lower than they really will be. The CBO had to use numbers based upon expiration of the tax cuts, and the resulting jump in all tax rates to all Americans, to base their reports on.
The left is screaming bloody murder at how the rich are stealing hundreds of billions of dollars from the government through extension of the Bush tax custs for those who earn over $250K. I have heard such incredible claims as it is going to cost the government up to $700,000,000,000 to extend these 'rich' cuts for two years. What an absolute load of political bullshit.
Consider this. The filthy rich, those who the left hates so much, employ armies of lawyers and tax accountants to help them avoid paying taxes. Does anyone in their right mind think that George Soros, billionaire Socialist, payes income taxes on his worth at the current top rate of 35%. No way in hell. I'd be surprised if he hasn't managed to find a way to get the government to pay him! Loopholes and tax shelters createds specifically to allow the rich to avoid taxes are scattered throughout the tax code - put there by politicians helping their rich friends. This theoretical example is entirely possible. Billionaire T.T. does not work for anyone, and hence does not receive a 'paycheck'. He makes millions every year through his investments in tax free bonds and securities. He takes advantage of government tax breaks, and shelters for his money. T.T. could double his fortune in a year, and not owe a single penny of income tax - under Obama, he could even receive a government check back.
Is upping the tax rate on the 'rich' going to make these people pay their share of taxes? If they aren't paying at 35%, what makes anyone think they'll pay at 39.6%?
There have been movements in the past to close these loopholes, but they haven't gone anywhere. Why? Because the targets of such a movement own the politicians who would have to change the laws. It just ain't going to happen.So, what does this leave? It leaves the 'rich' who fall into the category of $250K up to, I guess, about $5,000,000. Rich, perhaps. Paying income taxes, because they aren't rich enough to have the armies to gain all the loopholes with. Upping the tax rate on them by another 5% or so will do what, exactly? It might gain the government an extra $12,500 from someone making right at $250,000, per year. That's less than a drop in the bucket to the government, It is a lot of money to the person it is being taken from, money directly out of their pocket, decreasing what they can spend, what they can invest.
So, if Obama and the Democrats are right in claiming $700,000,000,000 lost from the loss of this tax increase on the 'rich', and presume that the uber rich aren't going to pay anymore than they already do (which is almost none), that means that there have to be about 56,000,000 people in the United States making between $250K and $5,000,000. (Yes, my math is not exact, but it does illustrate the size of the issue pretty well).
Either 1/6 of all people in the United States (men, women, and children) are mid-level millionaires, or Obama's numbers are a trumped up pile of BULLSHIT. I tend to believe the latter is actually the correct choice ....
Update - While they are screaming bloody murder that the Bush tax cuts on the top level tax rate will cost the government $700,000,000,000, Democrats are tyring to push through an overall spending bill to keep the government running, before the lame duck session is over. Republicans are balking, because the 1924 page spending bill is full of pure pork spending. Lawmakers, primarily Democrat, have loaded this bill up with every pet project and vote buying scheme they can think of, and are trying to push it through quickly before anyone can read the massive document. Billions upon billions of wasted money - OUR MONEY. Democrats - absolute f**king liars when it comes to fiscal responsibility.