My last day of non-existent Zen…no deal out of Washington……and the beat goes on…..tick….TOCK!
The third and last part of the wonder that is ‘cut, cap and balance’……..the Balance part of the equation and here is where this whole thing falls apart, in my opinion…….FleetAdmiralJ of Blue Wave News has done a fine job at describing the act and if you want to read the whole thing go to Parts 1&2….or go to blogroll and click on Blue Wave News and if that is too slow for your liking then this should help……http://bit.ly/mRYhLS
Title III: Balance
This section extends the debt limit to $16.7 trillion (an increase of $2.3 trillion), but only unless and until a balanced budget amendment as introduced in H. J. Res. 1, S. J. Res. 10, or H. J. Res. 56 (or any comparable amendment) is passed by 2/3 of both houses of Congress and sent to the states.
And then 2/3 of the states must vote to put this in the Constitution……NOT gonna happening, sports fans…..why? Think about the ERA or as us old farts called it the Equal Rights Amendment….which would truly have made everyone equal……if the states could NOT pass an equal rights amendment, which by the way is something that the Constitution already says we have….what chance would a balanced budget amendment have?
Let’s be honest….if you have read parts 1,2 & 3 you have seen what they want to do to the budget and to the country………but if this were to actually pass…..what would it do? Let us be clear!
- Make it near impossible to implement stimulus spending in a recession. In fact, it would almost certainly require severe budget cuts in the very programs that help people the most during a recession.
- It would create a disincentive to implement possible stimulative tax cuts as it would take a 2/3 vote to repeal them (assuming one couldn’t just sunset them)
- It would make it difficult for the government to provide disaster relief in the case of a major hurricane, earthquake, flood, drought, or other natural disaster as it would require a 2/3 vote to do so
- It would make some common sense fixes to Social Security difficult, by making any vote to raise or eliminate the payroll tax cap subject to a 2/3 vote, putting the sustainability of Social Security into even further question
- The Patient Protection and Affordable Care Act would almost certainly have to be repealed. This would actually make it harder to balance the budget, as the PPACA has the net effect of lowering the deficit, but it would violate the 18% of GDP provision.
- It would almost certainly require that any steps to be taken to lower the national debt would have to be taken by spending cuts only.
- If the GOP cut taxes with the argument that it would increase revenue – and were wrong – it would be nearly impossible to reverse as it would take a 2/3 vote to do so.
- However, it would make it (relatively) easy for a party who controls Washington to do something such as Invading Iraq again, as it would only take a 3/5 vote of both Houses to declare doing so a “imminent and serious military threat to national security.” – but would make it difficult to pay for such action by raising taxes as 2 of the 3 amendments wouldn’t waive the 2/3 vote to raise taxes provision, even in a time of war.
- It would make the US much like California in that it would take a 2/3 vote to do any sort of real budget reforms. This situation was a large reason why California faced one of the biggest budget deficits in the nation
- It would encourage Congress to balance the budget using budgeting tricks, similar to what is happening in many states with balanced budget amendments right now, making the nation’s financial situation less stable, not more stable…….
Many have that it was a pretty good plan…..but once again it would fall on the shoulders of the middle class to solve ALL the country’s economic woes…….personally, I am weary of all the these programs that have me and people like me having to shallow the austerity pill……It is about time that we ALL…..and that means just what I said…..ALL…….to be part of the solution…..if they cannot do that then…..LET IT RIP!