Sure there is regardless what you see, read or hear…..the plan that all want to ignore is the Simpson-Bowles……Repubs do not like it because they will have to go against Nordquist…..Dems do not like it because they would have to change a few of the entitlement positions….I do not like it because I think it does not go far enough in areas……but you decide…….read it here…..
The 6 Tenets of “The Plan”
1. Discretionary Spending Cuts
- Eliminate all Congressional earmarks
- Reduce Congressional and White House budgets by 15% (including travel budget)
- Freeze Congressional pay until 2014
- Freeze federal workers’ wages through 2014
- Also, eliminate 200,000 federal jobs by 2020 (10%)
- Also, eliminate 250,000 federal non-defense contractor jobs by 2015
- Hold discretionary spending in 2012 to 2011 levels; by 2013, reduce descretionary spending levels to those of 2008. After 2013, increase the spending by half the rate of inflation.
- Both security and non-security funding cut in equal percentages
- Increase transportational revenues until the transportaion trust fund is fulled-funded (includes a gas tax-hike starting at $0.15)
- Create a committee to cut $11 billion of unnecessary programs by 2015
- Cut $1 billion of “low-priority” Army Corps of Engineers programs by 2015
- Cut oversea’s budget by 10%, cut contributions to the U.N. by 10%, and cut foreign aid budget by 10% by 2015
- Cut almost $1 billion in fossil fuel research funds
- In order to spend above the caps: (1) Affirmative vote from House of Reps (2) 60-vote point of order in the Senate
- President proposes annual limits to war spending
- Establish a disaster fund based on the average amount spent in the past decade (rolls-over annually)
- Create a committee to cut duplicative, unnecessary, or non-priority programs from spending
2. Tax Reform
- “The Zero Plan”
- There will only be 3 personal tax brackets
- There will only be 1 corporate rate
- All deductions, loopholes, and credits will be eliminated
- This includes EITC and mortgage interest deductions
- The 3 tax rates will be 8%, 14%, and 23%
- The 2nd Plan
- Personal deductions would increase to $15,000
- The 3 tax rates will be 15%, 25%, and 35%
- Repeal or extensively limit tax deductions
- This includes state, local, and mortgage interest deductions
- The 3rd Plan
- Force Congress to reform taxes by raising taxes each year that they fail to act
- Implications of Their Suggested Changes
- The above 3 plans allow Congress to only collect taxes on income made in the US
- It redudes or eliminates taxes on revenues companies earn abroad and US expatriates
- The report also suggests raising the gas tax by $0.15/gallon
3. Healthcare Cost Reduction & Reform
- More lower-income citizens would be put into Medicaid-managed care
- Freeze Medicare payments through 2013, cut them in 2014, and create a better physician payment formula
- Medicaid co-pay amount would increase
- Reform or repeal the Community Living Assistancer Services and Supports program – it is unsustainable
- Begin previously-planned cuts to Medicare Advantage and home health care programs
- Use pilot programs more often
- Create savings by reducing administrative costs, excess payments, and fraud, reforming cost sharing, medical malpractice, and Medigap coverage, and eliminating state gaming on the program
- Create a spending cap for Medicaid/Medicare growth
- If the health care system overspends in 5 years, Congress and the President may be forced to increase premiums or co-pays
- If the health care system overspends in 5 years, Congress and the President may be forced to raise the Medicare eligibility age
- Create a long-term budget for total health care spending, limit growth to GDP growth plus 1%
4. Mandatory Spending Cuts
- Government expenditures and revenue stop at 21% of GDP
- Reduce argicultural subsidies
- Eliminate federally subsidized student loans in which the government makes interest payments while the student is in school
- Reform military and civil service health and retirement savings programs
- Charge market rates for federal electricity-generation
- Require the TVA to charge rates to cover its costs
- Give Postal Service more rule over their restructuring
- Increase user fees with inflation
5. Social Security Reform
- Retirement age will increase based on longevity statistics
- In 2075, estimated retirement age will be 69
- Raise the Contribution ceiling:
- Currently, people only pay Social Security taxes on the first $100,000 that they make – This accounts for only about 85% of taxable wages
- Let’s take the ceiling up to 90% by 2050
- Ensure the minimum benefit is 25% higher than the poverty line
- Use “chained CPI” instead of standard CPI to measure Social Security cost of living adjustments
- Increase benefits to individuals older than 85
- Achieve a net-reduction in benefit payments by (1) increasing benefits for low-income beneficiaries and (2) decrease benefits for higher-income people
6. Process Reform
- Enforce deficit reduction targets
- Adopt triggers for extended unemployment benefits based on the unemployment threshold
- Only allow spending cap adjustments for review of IRS enforcement, anti-fraud efforts in health and labor programs, and disability claims
Read the bill here. If you think there is more that could be done, then read the whole thing and draw an informed conclusion…..
News Flash! In case you missed it…Santorum suspended his campaign yesterday….so now there are three….but only one that will now focus on sniping at the president…….pretty much hands Mitt the nomination on a silver platter…….well played Mr. Romney!
I have said that I would support an idea no matter where it comes from as long as it passes my test…that being in the best interests of the people of the US……and now it is about time for the deficit circus to begin again……..but it will be the same partisan game they have been played since the election of Obama….none of these worthless individuals are concerned with the country and that sucks!
The Repubs have their plan…..Dems have their plan……The White House has their plan…..an NO one talks about it…..all they can accomplish is a sprint to a microphone and sling out lame ass talking points…..this accomplishes absolutely NOTHING!
Personally I like the Simpson-Bowles solution from a couple of years ago……it was a perfect place to start the conversation….but NO the players had to go back and be told what to believe and it did not fit into the scheme of their political BS……in case you missed it back when it was published let me refresh your memory…….
Social Security cuts:
- Index the retirement age to longevity — i.e., increase the retirement age to qualify for Social Security — to age 69 by 2075.
- Index Social Security yearly increases to a lower inflation rate, which will generally mean lower cost of living increases and less money per average recipient.
- “Increase progressivity of benefit formula” — i.e., reduce benefits by 2050 for middle, and, especially, higher earners, relative to current benefits.
- Increase the Social Security contribution ceiling: while people only pay Social Security taxes on the first $106,800 of their wages today, that’s only about 86% of the total potentially taxable wages. The co-chairs suggest raising the ceiling to capture 90% of wages.
- The co-chairs suggest capping both government expenditures and revenue at 21% of GDP eventually.
- In their first plan, called “The Zero Plan,” they suggest reducing the tax brackets to three personal brackets and one corporate rate while eliminated all credits and deductions. Without any credits or deductions (including the EITC and mortgage interest deductions), the 3 tax rates would be 8, 14 and 23 percent.
- In their second plan, they would increase the personal deduction to $15,000, create 3 tax brackets (15, 25 and 35%); repeal or significantly curtail a number of popular tax deductions (including the state and local deduction and the mortgage interest deduction); and eliminate other tax expenditures.
- The third plan would force Congress to undertake comprehensive tax reform by 2012 by raising taxes for each year Congress fails to act.
- All their proposals limit Congress to collecting taxes on income made within the United States, reducing or eliminating taxes on American expats and revenues companies earn abroad.
- They also suggest raising the federal gas tax by 15 cents per gallon.
- Force more low-income individuals into Medicaid managed care.
- Increase Medicaid co-pays.
- Accelerate already-planned cuts to Medicare Advantage and home health care programs.
- Create a cap for Medicaid/Medicare growth that would force Congress and the President to increase premiums or co-pays or raise the Medicare eligibility age (among other options) if the system encounters cost overruns over the course of 5 years.
Discretionary spending cuts
- Eliminate all earmarks.
- Eliminate the Office of Safe and Drug-Free Schools.
- Freeze federal worker wage increases through 2014; eliminate 200,000 federal jobs by 2020; and eliminate 250,000 federal non-defense contractor jobs by 2015.
- Eliminate subsidized student loans, in which the government makes interest payments while the student is in school.
- Establish co-pays in the VA medical system and change the co-pays and deductibles for military retirees that remain in that system.
- Eliminate NASA funding for commercial space flight.
- Require the Smithsonian museums to start charging entrance fees and raise fees at the national parks.
- Eliminate funding to the Corporation for Public Broadcasting — which many conservatives suggested in the wake of the firing of former NPR contributor Juan Williams.
- Reduce farm subsidies by $3 billion per year.
- Create a Committee to eliminate unnecessary programs to the tune of $11 billion by 2015.
- Merge the Department of Commerce and the Small Business Administration and cut its budget by 10 percent.
- End “low-priority” Army Corps of Engineers programs to the tune of $1 billion by 2015.
- Cut the State Department’s overseas budget by 10 percent by 2015; reduce the proposed foreign aid budget by 10 percent in 2015; and cut voluntary contributions to the United Nations by 10 percent in 2015.
- Eliminate the Overseas Private Investment Corporation, which provides subsidized financing and political risk insurance for U.S. companies’ investments abroad.
- Cut $900 million in fossil fuel research funds.
- Force airlines to increase their contributions to airline security costs and allow them to increase per-ticket security fees.
Defense spending cuts:
- Double the number of defense contractor positions scheduled for elimination from 10 percent of current staff augmentees to 20 percent.
- Reduce procurement by 15 percent, or $20 billion.
- Eliminate the V-22 Osprey program.
- Cancel the Marine Corps’ Expeditionary Fighting Vehicle program.
- Halve the number of F-35 Joint Strike Fighters in favor of F-16s and F/A-18Es.
- Cancel the Marine Corps F-35 program.
- Cancel the Navy’s Future Maritime Prepositioning Force.
- Cancel the new Joint Light Tactical Vehicle (JLTV), the Ground Combat Vehicle, and the Joint Tactical Radio.
- Reduce military forces in Europe and Asia by one-third.
- Send all military children based in the U.S. to local schools.
I know it is a lot to digest but if you do not know what is being offered then it is possible that the MSM will make all your political decisions for you………this would be a great place to start negotiations…provided that was ever the intention……
It is the day after Labor Day and the Congress should be making their way back to work….or at least to Washington……and when they return it will be the super committee that will get most of the media attention……..and very little will be said about those donors that will be pulling strings……..
Each party named 6 people to work on the Super Committee that will be working on the spending cuts thingy that consumed Washington for 6 weeks prior to their abandoning their posts and going home to sleep with their donors…..but the big question is…..will this committee be successful at finding a partisan answer to all the crap about spending? My guess is…….NO!
Let me explain my reasoning…….from an article in Raw Story…..
The bipartisan “super committee” created by the debt ceiling deal is comprised of lawmakers who have received big bucks from special interest groups, according to a report by MapLight.The committee is tasked with finding at least $1.2 trillion in deficit cuts over ten years.
In total, the twelve members appointed to the Joint Select Committee on Deficit Reduction got nearly $64.5 million from special interests groups over the past decade, with legal firms donating about $31.5 million and Wall Street firms donating about $11.2 million.
Of that $11.2 million, Goldman Sachs, Citigroup, Bank of America and JPMorgan Chase donated approximately $2 million combined.
The members appointed to the committee are Sens. Pat Toomey (R-PA), Jon Kyl (R-AZ), Rob Portman (R-OH), Patty Murray (D-WA), John Kerry (D-MA), and Max Baucus (D-MT) and Reps. Jeb Hensarling (R-TX), Fred Upton (R-MI), Dave Camp (R-MI), Chris Van Hollen (D-MD), Xavier Becerra (D-CA), and Jim Clyburn (D-SC).
Remember that irritating term, “kicking the can down the road”? Well, sports fans, this committee is that can on that road……This is always the answer in Washington….A Committee! Nothing will be done because they can drag their feet and the trigger with no compromise will do what the conservs want done….so there is NO incentive for this attempt to succeed. Just another Washington waste of time and resources!
Just when you thought it was safe to follow the news again…..BLAM! Here we go again with a ginned up story to capture our hearts and minds……well you know what they say about hearts and minds, right? NO? “when you have them by the balls they follow willingly”……and that my friends sums it up very nicely……
But all seriousness aside……..the next “big” story for the media to drive will be the “super committee” to solve all our debt problems with one group of people….(pause here for side splitting laughter)……..remember that can that everyone was so concerned about go down the road? This committee is just that sort of can…..need we say any more?
While it’s a relief to many in Congress that the debt ceiling bill is on its way to becoming law, Jill Lawrence reminds us of the next phase — “the one with the holiday deadlines — in which a 12-member bipartisan committee of senators and House members is supposed to come up with $1.5 trillion in further deficit reduction.”
“A word to future supercommittee members as you ponder how to proceed: You’re starting out in a deep hole. The public has been focused to an unusual degree on Congress for the last several weeks. The result is rock-bottom approval ratings and an image nobody wants
But who these saviors be? I can tell you who they will not be……any of the Gang of Six, while I did not agree with them on much, at least they had a plan….and then there are those Dems and Repubs that were on the Simpson-Bowles committee, they will not be on there either for there was a plan that came out of those meetings….so who will it be that will be tapped to lead away from the road to ruin?
Senate GOP sources tell the Weekly Standard that senators who vote against the debt ceiling legislation today will be ineligible to serve on the so-called “supercommittee” for deficit reduction that the legislation creates.
“Excluding those who vote against the debt deal will ensure that some of the most fiscally conservative members of the Senate Republican caucus, including most of its freshmen, will be reading about the committee’s activities in the newspaper rather than guiding its decisions.”
(Sorry…I had to pause for more raucous laughter…..sorry)….like I said….it will be a joke and at worse a media circus…..
There will be the extremes of all three sides of the political triangle…..Dem/Repub/Tea Party….and for that reason there is NO one serious on solving the problems……and then in the end will go the way of Simpson-Bowles and the Gang of Six….dismissed and all this crap will start over again……NO one in Washington is serious about finding solutions…..and in the end….we Americans will have a good laugh at those that we elect…..but will we learn anything? Doubtful, very doubtful! And in the end we will still be on that road that we hope to avoid trying to catch up with the can we kept kicking……
Governance as usual!
P.S. If you do not like this, then wait….the Repubs will use the unemployed to finish the screwing of the American people (post to come)………
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!
Usually I take the weekend for some Zen….but the debt thing is keeping me from clearing my mind of the numbing effect of American politics…….
With the “CUT” section behind us….I will turn to the “CAP” portion of the evening……once again I will let FleetAdmiralJ of Blue Wave News explain this section…..in case you have the patience of a oversexed rabbit you can go to blogroll and get the whole thing at one time…..and if that is too difficult then try this……http://bit.ly/mRYhLS
Title II: “Cap”
Section 201(a), as far as I can tell, removes section (c)(4) from this piece of the US Code, which eliminates certain discretionary budget categories, including “highway category,” “mass transit category,” “conservation spending category,” “Federal and State Land and Water Conservation Fund sub-category,” among others. I don’t think this prohibits funds from being spent for these things, but it appears to eliminate them as distinct budget categories. It then adds to the US Code, this:
“The term ‘GDP’, for any fiscal year, means the gross domestic product during such fiscal year consistent with Department of Commerce definitions.”
Section 201(b) then limits total outlays (both on and off budget) to:
- 21.7% of GDP in 2013
- 20.8% of GDP in 2014
- 20.2% of GDP in 2015
- 20.1% of GDP in 2016
- 19.9% of GDP in 2017
- 19.7% of GDP in 2018
- 19.9% of GDP in 2019, 2020, and 2021
Just as comparison, federal outlays for the past 40 years have averaged at about 20.6% of GDP, though FY 2009 and FY 2010 averaged at 24.4% of GDP.
Finally 201(b) says that if outlays are over, sequestration measures should be taken, though Medicare, Social Security, military pay, military retirement, veterans benefits, and national debt interest are exempt.
Read the last paragraph! And then tell me what is left to cap? Oh, let me guess….such non-essentials as education? There are only so many programs left and the ones that are will do little to balance anything……
Ok, we have heard from the GOP with the Ryan plan…..we heard from the gang of 6……we have heard from damn near every politician that can sprint to a mic after a negotiation session….here a plan and there a plan….plans are everywhere…..and with all that planning…there is NOT a damn solution in the bunch…..SNAFU….or maybe a better description would be….FUBAR!
But wait there is time for one more deficit plan…..yes….one more….this one comes from the Senate and it comes from the majority leader, Harry Reid……his is very simple……
$2.7 trillion package, including $1.2 trillion in discretionary spending cuts, $100 billion in mandatory savings, $1 trillion savings from winding down the wars in Iraq and Afghanistan, $400 billion in interest savings, while establishing ‘Joint Congressional Committee to Find Future Savings’.
Can anyone say……”VAGUE”?
But it does include one of my favorite things about Washington……..establish a “Commission”…….now that is what is needed…for sure…….look how well the Simpson-Bowles Commission worked (all that is sarcasm, in case you missed it)…..you know how every politician, yes those same politicians, that sprint to a mic to get the first talking point in, likes to use the analogy of….”kick the can down the road”…..a term that is almost as popular as “boots on the ground” or “24/7″……..well sports fans…..a commission is nothing more than kicking that damn can down the road…….a commission is something used to make it appear that progress is being made…….but all we get is that can rolling into traffic…..
Oh goody…the Prez has signed on…..and what would you think the GOP response will be? You got it! To the Repubs it is a non-starter….go figure!
Sorry people….but this plan is no damn better than nay of the others….the middle class is still pulling everybody’s weight in the deficit debate…….now that is fair….we would not want all those jobs that the corporations are creating to be effected b y an increase in taxes…….(yep! Sarcasm again!)
The cowards in Washington have 7 days………
And just when you thought it was safe from another plan…..you were WRONG! It seems that House Speaker, John Boehner has a two step plan….oh goody….more fun……
In the first phase, there would be $1.1 trillion in non-defense cuts with an increase in the nation’s debt ceiling by $1 trillion which should last until April.
In the second phase, there would be a vote on a balanced budget amendment, which is designed to secure the votes of 59 House Republicans who have already pledged not to vote to raise the debt ceiling under any circumstances. And he also wants a commission….cool, huh?
I see Boehner has the same vision as everyone in Washington…..F*ck the Middle Class and collect your dividends from the special interests………business as usual…….not much new! All this is just so damn silly that it begs to be ridiculed!
There is an election in 2012….maybe we as voters should look elsewhere for representatives….the ones we keep electing are cowards and as worthless as tits on a boar…….period!
7 days and counting……tick….tick!
In case there are still those who do not know who Grover Nordquist is let me assist……he is the guy that has the Tax Pledge that almost all Repubs sign promising to NEVER raise taxes….and there is where the rub is in the debt debate…..Repubs want nothing but cuts and Dems are calling for cuts and revenue sections to any bill…..up until about a year ago…cracks are starting to form in his wall of tax cuts only…….
One of the leaders of the hammer brigade is Sen. Coburn, a Repub, but it is more in the form of a technicality than an outright dismissal of the Pledge he signed when he came to Washington……
This from the Fiscal Times……
The Wall Street Journal reportedthat Coburn was among the members of a small bipartisan group of senators who are willing to consider taxes as part of a deficit reduction package. Norquist immediately went after the three Republicans named in the article: Coburn, Saxby Chambliss of Georgia, and Mike Crapo of Idaho. (The Democrats are Kent Conrad of North Dakota, Richard Durbin of Illinois, and Mark Warner of Virginia.)The same day the Journal article appeared, Norquist fired off a letter to Chambliss, Coburn and Crapo, threatening them with retaliation for their apostasy:
I was disappointed this morning to read an article … in which you were implicated as parties to a bipartisan budget deal containing a net tax increase…. Needless to say, support for such a deal would most likely be a violation of your Taxpayer Protection Pledge. That pledge which you made to your constituents and the American people obligates you to “…oppose any net reduction or elimination of deductions and credits, unless matched dollar-for-dollar by further reducing tax rates.”
I urge you to reject this so-called “deal” which is little more than a transparent attempt to hike taxes and put off the spending restraint the country clearly called for in the 2010 elections.
Chambliss, Coburn and Crapo immediately wrote back to Norquist, rejecting his threat and the logic of his argument. They said there is a huge difference between a legislated tax increase and the natural rise in revenue that would accompany faster growth resulting from tax reform.
To Nordquist, the deficit is NOT important at all…….
Norquist is backed into a corner and forced to admit that he doesn’t really care about the deficit. He told the Washington Post’s Ezra Klein on March 9, “The goal is to reduce the size and scope of government spending, not to focus on the deficit.”When asked to explain how the size and scope of government is reduced by the tax pledge, Norquist fell back on a discredited doctrine called “starve the beast,” which says that tax cuts somehow or other automatically reduce spending and that the only thing to talk about is spending.
There must be revenue increases if there is to be a true recovery……cuts alone will do little to nothing….hopefully there are those that can do the math…….it is basic math not some exaggerated formula…….
So I ask again, is there cracks appearing in the Nordquist wall?
But wait! There is an addendum……..this from yesterday’s Think Progress……
The Washington Post editorial board reported this morning that Norquist himself stated that allowing the Bush tax cuts to expire in 2012 would not technically violate his pledgeas “not continuing a tax cut is not technically a tax increase”:
Would allowing the Bush tax cuts to expire as scheduled in 2012 violate this vow? We posed this question to Grover Norquist, its author and enforcer, and his answer was both surprising and encouraging: No.
In other words, according to Mr. Norquist’s interpretation of the Americans for Tax Reform pledge, lawmakers have the technical leeway to bring in as much as $4 trillion in new tax revenue — the cost of extending President George W. Bush’s tax cuts for another decade — without being accused of breaking their promise. “Not continuing a tax cut is not technically a tax increase,” Mr. Norquist told us. So it doesn’t violate the pledge? “We wouldn’t hold it that way,” he said.
Norquist is quickly trying to walk back that statement, declaring that “any failure to extend or make permanent the tax cuts of 2001 and 2003, in whole or in part, would clearly increase taxes on the American people.” However, even while reaffirming this principle on MSNBC this morning, Norquist stated again that there are technical ways to allow the tax cuts to expire that “and not violate the pledge.”
Cracks are forming……’Mr. Nordquist…tear down this wall’………(sorry could not resist)………
Daily we hear of the plans for the correcting of the economic problems we have here in the US….there are tax cuts…..there stims….there are infrastructure….there are …..on and on……everybody has a plan….Repubs, Dems, Greens, Libertarians, etc etc….and now the Fed chief has a plan for deficit reduction….
Bernanke speaks and his plan is…….
“Clear metrics are important, together with triggers or other mechanisms to establish the credibility of the plan. For example, policymakers could commit to enacting in the near term a clear and specific plan for stabilizing the ratio of debt to GDP within the next few years and then subsequently setting that ratio on a downward path. Indeed, such a trajectory for the ratio of debt to GDP is comparable to the one proposed by the National Commission on Fiscal Responsibility and Reform.To make the framework more explicit, the President and congressional leadership could agree on a definite timetable for reaching decisions about both shorter-term budget adjustments and longer-term changes. Fiscal policymakers could look now to find substantial savings in the 10-year budget window, enforced by well-designed budget rules, while simultaneously undertaking additional reforms to address the long-term sustainability of entitlement programs. Such a framework could include a commitment to make a down payment on fiscal consolidation by enacting legislation to reduce the structural deficit over the next several years.”
Spoken like a true intellectual……..all that geek speak means…..the debt ceiling should be raised…..a bi-partisan approach to spending and a long term plan…period.
From the VOMITORIUM
I know damn well you have heard all the rumblings about the deficit and the national debt ceiling….you have heard the back and forth….the blame game….the political rhetoric….well the debt ceiling is the fecal matter to which I refer…..
The GOP has drawn their line imaginary line in the sand….the Dems have peed on it and refused to cross it….and in the end it will all be just one big Kabuki….political theater and not even at its best……
In the end, we ALL know these dipsticks will raise the ceiling and move on to something else…..but before that happens our politicians just have to play this silly little political game….a game to appear as if they are actually earning their money…..
The game is a foot! They recently postponed the date to August, the 2nd, I believe and as the deadline approaches the media will be sucked into this infantile game….they will start making the ceiling the lead story and will parade expert after expert and analyst after analyst out and then as it draws really close they will install a countdown clock that will flash continuously to let us know just how soon the country will fail and become just another Greece….as the clock counts down the minutes and hours and just before the final tick….the Congress will come to an agreement and raise the ceiling and thus preventing any damage to Wall Street from the ceiling…and all of it could have been done months ago….but then there could not be this massive drama, a pretend drama, to keep the people mesmerized by their, our Reps, truly amazing acting job.
Yes,m they raised the ceiling limit and we will have been saved by our “hard” working Reps….they raised it and without ever addressing the problems that it carries…..like the massive health care costs or the oil monopolies and their subsidies or the financial scams that have been plaguing the economy or banks gambling with taxpayer money or endless wars or…….it is a sizable list of problems and NONE will be addressed….and all can be considered the root causes of the problems we have with the deficit….
And in the end of the soap opera…the country will be NO better off than the day they started playing the game…..but the national debt ceiling will have been raised……..hope you sleep better knowing this……