Back to the current demand for increased taxes. According to Ron Paul in a CNBC interview,
They are arguing over power, spin, who looks good, who looks bad; all trying to preserve the system where they can spend what they want, take care of their friends and print money when they need it.The tax increase on the top 2% will fund the government for 8 days, ie., a trivial amount. The "spending cuts" from the W.H. include savings from wars that are over, ie., reductions of what might have been and saved interest costs, ie., no real spending cuts at all. In reality spending will increase and the deficit will increase this year and every year into the future. This would normally continue until the bond market revolts. But the bond market is irrelevant now the Federal Reserve will print money out of thin air to monetize the entire debt!
Even if the WH proposal passes the Senate and House, unless tax deductions and tax credits are reformed as Boehner wanted, the top 2% will find ways to minimize their tax increases.
There is no adult in charge in Washington. Obama and Reid fiddle while the nation is passing the point of no return. There will never be a return to fiscal sanity.
ALL of this could have been avoided if Mitt Romney had been elected: no fiscal cliff crisis, an end to Ben Bernanke's monetary madness and a more receptive climate to start to address spending.