MORNING BUZZ: New Year, Same Story
Good Morning and Happy New Year!
We are not big New Year’s revelers in our house…though we didn’t get invited to any New Year’s Celebration either so it’s not like we had somewhere to go. So it was a quiet night and an early morning. I thought we’d have a pretty small audience this morning but judging from the size of the response from our Facebook post, I’d say a lot of you decided New Year’s Day is a day you’d rather work than sleep off a hangover. The United States Senate was also working last night into this morning.
The Senate overwhelmingly passed a deal to keep taxes from going up on most Americans. Taxes will go up but only on Americans who make more than 400,000.year. The Senate decided they couldn’t agree on spending cuts to reduce the deficit…so they did what all lawmakers do in Washington…they kicked the can down the road a few months in the hopes that something would happen and the solution would become either less painful or more clear. I doubt it will be either of those things. What a waste this entire process has been. Senators Harkin and Grassley both voted no on the agreement by the way. Grassley said the deal didn’t do anything to address the deficit and he’s right. That’s the spending side. All this deal does is feed the monster more by raising taxes..even if its only on a (relatively) few people. For his Part, Harkin says it didn’t raise taxes on ENOUGH people. He wants more revenue.
If you ask me they’re all waiting for the economy to keep improving…hoping hey won’t ave to make tough choices. There was a window here where our leaders could have really changed the way the Federal Government operated, but too many people with too much influence are too invested (read, benefiting) from the current broken system. Leadership failed to act…to tell members of their own party that change, however painful, has to come to fix the mess we are in.
As for the Fiscal Cliff, a lot of you were skeptical it was ever going to hurt anyone…Sen Harkin called it “manufactured”. I understand why…but I guess I would make this analogy. if you had way too much to drink last night and still got behind the wheel of a car…chances are you got home and didn’t hurt anyone. Why would you do that? Why would you put the country behind the wheel while it’s so vulnerable to crashing?
More is good
Iowa has more money. That’s good. The increase in revenue is attributed to an increase of more than 60% in corporate tax collection. Not bad.
I had a friend put an interesting theory forward this weekend. He thinks it’s going to be states that bail the Federal Government out. Republican Governors in a lot of states like Iowa are out pounding the pavement trying to get significant foreign investment in their State. If it works, if State revenue increases like Iowa’s has…might it be enough to give the Economy inertia?
It’s time, Our Christmas tree has been up since Late November. A month is a little too much to ask from a Christmas tree. I expect 3/4 of the needles will be on the living room floor by the time we get the lights off. Easy enough to vacuum up. I think we’re going to hear it from the boys however. They aren’t ready to give Christmas up quite yet. I’m ready to have the Living Room back. I hope you all have a good day off if you are fortunate enough to be able to take it…