] Dick Morris: No Automatic Tax Increases!

In this issue

Jonathan Tobin: Defending the Right to a Jewish State

Heather Hale: Compliment your kids without giving them big heads

Megan Shauri: 10 ways you are ruining your own happiness

Carolyn Bigda: 8 Best Dividend Stocks for 2015

Kiplinger's Personal Finance editors: 7 Things You Didn't Know About Paying Off Student Loans

Samantha Olson: The Crucial Mistake 55% Of Parents Are Making At Their Baby's Bedtime

Densie Well, Ph.D., R.D. Open your eyes to yellow vegetables

The Kosher Gourmet by Megan Gordon With its colorful cache of purples and oranges and reds, COLLARD GREEN SLAW is a marvelous mood booster --- not to mention just downright delish
April 18, 2014

Rabbi Yonason Goldson: Clarifying one of the greatest philosophical conundrums in theology

Caroline B. Glick: The disappearance of US will

Megan Wallgren: 10 things I've learned from my teenagers

Lizette Borreli: Green Tea Boosts Brain Power, May Help Treat Dementia

John Ericson: Trying hard to be 'positive' but never succeeding? Blame Your Brain

The Kosher Gourmet by Julie Rothman Almondy, flourless torta del re (Italian king's cake), has royal roots, is simple to make, . . . but devour it because it's simply delicious

April 14, 2014

Rabbi Dr Naftali Brawer: Passover frees us from the tyranny of time

Greg Crosby: Passing Over Religion

Eric Schulzke: First degree: How America really recovered from a murder epidemic

Georgia Lee: When love is not enough: Teaching your kids about the realities of adult relationships

Cameron Huddleston: Freebies for Your Lawn and Garden

Gordon Pape: How you can tell if your financial adviser is setting you up for potential ruin

Dana Dovey: Up to 500,000 people die each year from hepatitis C-related liver disease. New Treatment Has Over 90% Success Rate

Justin Caba: Eating Watermelon Can Help Control High Blood Pressure

The Kosher Gourmet by Joshua E. London and Lou Marmon Don't dare pass over these Pesach picks for Manischewitz!

April 11, 2014

Rabbi Hillel Goldberg: Silence is much more than golden

Caroline B. Glick: Forgetting freedom at Passover

Susan Swann: How to value a child for who he is, not just what he does

Cameron Huddleston: 7 Financial Tasks You Should Tackle Right Now

Sandra Block and Lisa Gerstner: How to Profit From Your Passion

Susan Scutti: A Simple Blood Test Might Soon Diagnose Cancer

Chris Weller: Have A Slow Metabolism? Let Science Speed It Up For You

The Kosher Gourmet by Diane Rossen Worthington Whitefish Terrine: A French take on gefilte fish

April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review Nov. 30, 2012/ 16 Kislev, 5773

No Automatic Tax Increases!

By Dick Morris

http://www.JewishWorldReview.com | The front end of the financial deal now under negotiation in Washington will be akin to the tip of the tax iceberg. It won't appear threatening. But it's what under the water that will really matter.

On the front end, the negotiators will likely craft a package of revenue increases carefully constructed to avoid the appearance of tax hikes. They will follow Romney's lead in proposing a cap on deductions for upper income people, but won't agree to lower the rates as the Republican nominee had urged. The negotiators will seek all kinds of revenue "enhancements" by cutting industrial tax deductions, reducing tax subsidies to oil companies and the like. And they will probe deeply for revenues from the sale of federal lands and unused government-owned buildings.

But, on the back end, the deal will undoubtedly leave a "balloon" payment due — debt that will not be covered by the deal but which Congress will address at some future date. To deal with this additional piece of deficit reduction, Congress will enact the Democratic Party's dream — a deal to raise taxes without making anyone vote for it.

Automatic taxation would be triggered by a failure to pass further deficit reductions or by backsliding on the spending cuts already enacted.

The spending cuts likely to ensue from the feel-good fiscal cliff deal will probably be in the non-defense discretionary party of the government spending pie chart. It is very unlikely that Obama or the Democrats will agree to cuts in poverty-based entitlement programs like Medicaid, food stamps, subsidized housing, and welfare. These programs will remain intact, having almost doubled on Obama's watch as president.

And here's the rub: The increase in taxes and the failure to reach a comprehensive deal in the near term will probably cost the economy dearly in future growth. With unemployment up and expansion down (and perhaps even a recession coming), these poverty based entitlements will swell even further in their enrollments and benefits. As a result, the Congressional Budget Office will doubtless find that the deficit reductions measures of the short term fiscal cliff deal have failed to reach their objectives. As a result, they will order more tax increases (and phony spending cuts) to make up for the shortfall.

Then Democrats will have what they wanted in the first place: few spending cuts — and those overridden by entitlement increases — and a lasting program of tax increases. And nobody will have had to vote for the tax hikes! They will simply take effect automatically under the terms of the fiscal cliff deal.

In fact, a long term cycle could ensue of tax increases which slow the economy and increase entitlement spending followed by more tax increases to offset the falloff in revenues!

The key point about the fiscal cliff is not how we avert it, but that at its present incredible size, any path we choose will inflict massive economic harm, likely enough to tip us into recession. Tax increases, massive spending cuts, or just adding more debt and printing more money will all lead to recession in whatever combination they are enacted.

The fault was Congress' and the president's for letting the fiscal balloon swell to these proportions. At this order of magnitude — four years of fiscal crises rolled into one by the annual postponement of a solution — the deficit is lethal no matter how it is paid off.

The only way out that would be somewhat painless was Romney's solution of lowering tax rates as we cap deductions, a kind of revenue neutral tax cut. The cut in rates would offset the decrease in deductions and would stimulate the economy, growing our way out of the deficit just like we did in 1997.

But Obama's victorious legions will insist on their revenge against the "rich" and will burden job creators with tax increases that will set in motion the vicious cycle we see on the horizon.

Dick Morris Archives


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© 2012, Dick Morris