The lines are now set for the battle over the fiscal cliff. The fiscal cliff, which is a combination of expiring lower tax rates and automatic cuts to government spending, largely focused on the military, is set to cripple our economy come January 2013.
Already, Senate Minority Leader Mitch McConnell (R-KY) has said he will not stand for tax hikes. So has House Speaker John Boehner (R-OH). If we are to avoid the fiscal cliff – which was designed by Obama to hurt defense spending as a leverage to force Republicans to raise taxes – Obama will have to agree not to raise taxes.
Now Obama has fired back, suggesting that he will allow the economy to fly off the fiscal cliff, Thelma and Louise style, should Congress not cave and allow him to raise taxes on every individual and small business filing as an individual earning over $250,000 per year. His threat is simple: either punish the job creators, or he’ll let the automatic tax expirations punish them. Either way, the economy loses.