How the sequester happened

On Friday, the deadline for the federal spending sequester passed without an agreement between Democrats and Republicans on what portions of the federal budget to cut. Many may wonder exactly what the sequester is and how the nation reached the point where $85 billion will be cut from federal spending with no one in Washington taking responsibility.

The sequester has its origins in the debt limit debate of the summer of 2011. As the nation’s credit rating was downgraded and the federal government neared the end of its ability to borrow, President Obama pressed Congress to raise the debt limit. In exchange for doing so, House Republicans insisted onspending cuts. By 2011, President Obama was spending nearly a trillion dollars per year more than 2008, President Bush’s most expensive year, according to the White House Office of Management and Budget. Nevertheless, President Obama and the Democrats fiercely resisted any attempts to rein in spending. For their part, Republicans were equally tenacious in their opposition to tax increases.

 

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http://www.examiner.com/article/week-review-the-sequester-takes-effect?cid=db_articles

Senator: Obama doesn’t want fiscal cliff deal

Isakson

Georgia Senator Johnny Isakson wrote yesterday that he is concerned that President Obama is not sincerely negotiating to avoid the fiscal cliff. The comment, written in Isakson’s weekly newsletter to constituents on Dec. 7, echoed a statement made earlier this week on MSNBC’s Daily Rundown with Chuck Todd.

Isakson wrote, “I am concerned that the president is not acting in good faith and actually wants us to go off the fiscal cliff, let tax cuts expire, cut defense spending and then turn around and cut taxes on just a few later on in order to gain exactly what he has wanted all along while looking as though he has single-handedly rescued the country.”

 

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http://www.examiner.com/article/ga-senator-says-obama-may-not-want-fiscal-cliff-deal?cid=db_articles

Obama proposes new rules banning profits, losses

In the wake of last week’s news that investment bank JP Morgan had lost a staggering $2 billion in hedge fund trading, President Obama today proposed a new “Dimon Rule” that would prohibit banks from investing in securities that lose money.  The rule, named for JP Morgan CEO Jamie Dimon, would hold investment firms civilly and criminally liable if their investments decrease in value.

President Obama announced the initiative in a press conference at the White House this morning.  As reported by the Wall Street Journal, President Obama praised Dimon and JP Morgan saying, “JP Morgan is one of the best-managed banks there is.  Jamie Dimon, the head of it, is one of the smartest bankers we got, and they still lost $2 billion and counting.”

 

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http://www.examiner.com/article/president-obama-proposes-rules-banning-investment-losses-profits

Barack Obama’s doomsday tax plan

(Elizabeth Cromwell/Wikimedia)

While President Obama has been stumping for his proposed Buffett Rule, a minimum 30 percent tax on the wealthy, the United States is hurtling toward a combination of tax increases and spending cuts that will automatically go into effect at the end of the year.  If Congress does nothing, these across-the-board tax increases will likely cause the already stagnant U.S. economy to slide back into recession.  Many economists are calling the looming increases “Taxmageddon.”

The danger is realized by all sides.  Ben Bernanke, chairman of the Federal Reserve, recently warned Congress that the nation is “headed for a massive fiscal cliff.”  As reported by The Hill, Bernanke said, “Under current law, on Jan. 1, 2013, there’s going to be a massive fiscal cliff of large spending cuts and tax increases.”  He continued, “All those things are hitting on the same day, basically. It’s quite a big event.”

Continue reading on Examiner.com Barack Obama’s doomsday tax plan – Atlanta Conservative | Examiner.com http://www.examiner.com/article/barack-obama-s-doomsday-tax-plan#ixzz1syF6NeJz

Ga. GOP proposes tax reform

In a surprise move the Joint Special Committee on Tax Reform unveiled its proposed tax reform package yesterday with only seven days left in the current session of the General Assembly.  According to the Atlanta Business Chronicle, the proposal is made up of eleven provisions, all of which have been attempted unsuccessfully in the past.

The tax reform bill, officially called H.B. 386, would make the following changes to Georgia tax law:

Continue reading on Examiner.com Ga. GOP proposes last-minute tax reform – Atlanta Conservative | Examiner.com http://www.examiner.com/conservative-in-atlanta/ga-gop-proposes-last-minute-tax-reform#ixzz1pgM1WTT9

Herman Cain unveils economic plan

(John Trainor/Wikimedia)

In an article in the Wall Street Journal, Georgia native Herman Cain unveiled the specifics of his economic plan for the first time today.  Cain’s plan, called the “9-9-9 plan,” appeared on the editorial page of the September 15 Journal.

 

The core of Cain’s plan is a tax reform proposal that would replace current personal and corporate taxes with flat taxes at a 9 percent rate.  Businesses would deduct business-to-business purchases and capital investment and then pay a nine percent flat tax on the remainder of their income.  Individuals would deduct charitable deductions and pay a 9 percent tax on their remaining income.  Capital gains would be excluded from taxation.

 

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http://www.examiner.com/elections-2012-in-atlanta/herman-cain-unveils-economic-plan