The fiscal cliff legislation was a total disaster. It failed on so many levels. It failed to address any real problems. The only thing it did was to make it seem like Congress was doing something when in reality, they are doing absolutely nothing. Last minute compromises, back door dealings and insane promises have once again marked another piece of really bad legislation. It has gotten so bad with Congress and the President, that they clearly no longer have any idea what good legislation is.
The first problem is spending. Spending hasn’t changed. Spending levels haven’t changed. Spending is still going up. There are no plans to stop it or even slow it down. None of these tax raises will touch the problem. No future tax raises on whatever income level will fix it. There isn’t enough money in the entire planet to fix things. If spending isn’t put into check or at least slowed down, the country is still in the same fix it was before the legislation. Nothing on this score has changed.
The Federal Budget still is non-existent. This is a huge problem because this is something that the Congress is supposed to pass as part of their jobs. Yet, they haven’t even gotten their act together to do that much. Everyone knows in order to fix a problem like spending, you have to know what you are spending your money on. The first part of that process as mentioned in every single self-help, get out-of-debt book is to write a budget. A lot of the blame falls on Harry Reid. He won’t place any budget legislation on the calender unless it comes from the President. Never mind that the President’s last budget proposal got zero votes. Yep, you read that right. Zero, not a single vote from his own party. Part of being irresponsible is to ignore where the government’s money is going to.
The third problem is a failure to address the problems of a high unemployment rate, the increasing number of food stamp recipients, the increase in Social Security recipients and the amount of time that these individuals spend on these programs. The problem here is that the overall burden is increasing. This is putting major pressure on the States and other areas of the budget. At this point, States have very few options other than to make those Draconian cuts to education. They have to pay for the mistakes they made in over-committing to benefits based on a booming economy. They have to pay for the mistakes they made in not saving enough or not stashing away enough funds. Unfortunately, things like this often catch up with you and there is no real way out. Of course, nothing in the legislation covers this.
Problem number 4 will be very visible on January 15th, otherwise known as payday. Yes, your taxes have gone up. It will be right there in your pay statements. This means smaller household operating budgets. Remember, this legislation really didn’t stop taxes from going up. It may have appeared that way. But the proof is right there in your check. So call this lie number whatever by President Obama or by the media. The truth is pretty clear in those numbers. The legislation did not stop tax increases across the board.
Clearly, there have been a lot of letdowns in this farce of a legislation. It failed on so many levels. Yet, some politicians are trying to claim victory. That’s like getting last place, and by the time you get to the finish line, everyone’s gone home. So, no one was there when you called yourself the winner. It was such a farce to say this legislation would prevent the fiscal cliff from coming. It actually has done nothing to stop it from coming. It is still coming. So, be prepared for it to come. A piece of useless legislation isn’t going to stop it. It isn’t even slowing it down.