The Debt Ceiling Has One Purpose – Extortion

Even though Republican lawmakers, Fox News pundits and conservatives at large believe the debt ceiling puts a limit on federal spending, that doesn’t make it so. The debt ceiling (or limit) is a 1917 law (part of the Second Liberty Bond Act) that gave the executive branch power to take on debt without congressional approval. So it sounds like Mitch McConnell and other Republicans are right when they say President Obama wants to do away with the debt limit so that he has the free rein to spend all he wants, right? — Wrong! Only congress can authorize new spending. However, it is up to the Treasury Department to actually pay the bills, and Treasury is part of the executive branch. And when the federal government is running a deficit, that means some bills are paid by loan (government bonds).

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House Passes Fiscal Cliff Bill 257-167

The House of Representatives passed the Senate fiscal cliff bill by 90 votes, and it has not gone unnoticed by this liberal that both the Senate and the House votes happened in the new year. It means not a single Republican voted for a tax increase since all tax cuts expired at midnight before either of the votes. How convenient.

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Senate Approves Fiscal Cliff Deal 89-8

In the early hours of the new year, the U.S. Senate voted and approved the fiscal cliff deal 89 to 8. This is a much wider margin than most could have even predicted, which really puts the pressure on the House of Representatives to pass the bill. The problem is, it’s the House of Representatives, led by Speaker John Boehner who has no control over the ultra-conservative (radical actually) tea party Republicans.

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A Fiscal Cliff Deal? – Not Before We Jump

We are all jumping off the cliff at midnight. — Apparently there will be no vote tonight on a deal to avert the fiscal cliff. Earlier today it was announced by Senate minority leader Mitch McConnell that a deal on the tax side was reached, but a deal on the spending side is still pending.

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A Fiscal Cliff Deal? – Not Yet

I hate to be the pessimist in the room, but regardless of all the positive talk today about a potential fiscal cliff deal, nothing is done until congress votes on it. The details of the potential deal includes an extension of unemployment benefits, a patch of the Alternative Minimum Tax (AMT) so that it doesn’t hit middle class families, and extensions of the earned income tax credit and college tax credit for 5 years.

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