Texas Republican Representative Ron Paul has, based on his decades of experience watching Washington negotiate and dither, predicted a last-minute compromise that will increase government spending and put off hard decisions into the future. On his website Paul noted, "America faces yet another congressionally-manufactured crisis which will likely end in yet another 11th hour compromise, resulting in more government growth."
He’s seen it all before:
The hysteria surrounding the January 1 deadline for the Budget Control Act’s spending cuts and expiration of the Bush tax cuts seems all too familiar. Even the language is predictably hysterical: if government reduces planned spending increases by even a tiny amount, the economy will go over a “fiscal cliff.” This is nonsense.
But it’s being treated as serious business indeed by the power brokers in the House of Representatives and the White House. On December 3, House Speaker John Boehner (R-Ohio) sent a letter to the president outlining the Republicans’ plan to avoid the fiscal cliff while criticizing the president’s plan offered last week as containing “very little” that was constructive in reaching a compromise. Regrettably, said Boehner,
that proposal calls for $1.6 trillion in new tax revenues [over 10 years], twice the amount you supported during the campaign. [Your] proposal also includes four times as much tax revenue as spending cuts, in stark contrast to the “balanced approach” on which you campaigned….
What’s worse, the modest spending cuts in [your] offer are cancelled out by the additional “stimulus” measures [you] are requesting.
Boehner then countered with....
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