The Republican Proposal Will Double America’s Deficit

Republicans are campaigning, using the deficit to tout their ‘common sense no spending’ efforts, which are a falsehood.  Consider the cost of war alone.  Taxes are a main talking point as Republican politicians want to keep the Bush tax cuts for the wealthy, yet the majority of America wants them to end.


CBS:

Fifty-three percent of Americans agree with Mr. Obama that the tax cuts for the wealthy should be allowed to expire, while 38 percent do not, according to the poll, conducted Sept. 10-14.


The majority isn’t in a position to want tax cuts for the wealthy and wait for the trickle down effect which never worked in the past.  This further proves that the right wing is not concerned with the well being of the middle and lower classes.


Americans claim to grow weary of this administration’s spending, and at the same time expect a miracle cure to the deficit the previous administration left.


The White House Blog:

If Congressional Republicans’ goal is to convince the American people that they care about spending, Senate Minority Leader Mitch McConnell’s latest tax proposal that would double the nation’s deficit over the next decade to $4 trillion is a perplexing start. A story in The Washington Post today outlines the Senate Republicans’ plan, while ironically quoting him as saying “We have a spending problem.”

And just this morning, according to another Washington Post story John Boehner caved to the wealthy special interests and flipped his position back to supporting the extension of the tax cuts for the wealthiest Americans while holding the middle class tax cuts hostage.

Instead of joining President Obama in his call to extend the middle class tax cuts to working families, to the people who need it most, McConnell and Boehner’s focus appears to be on millionaires and billionaires who aren’t asking for a tax cut.  During these challenging economic times, we simply can’t afford to borrow another $700 billion over the next decade to give an average tax cut of $100,000 to Americans making over $1 million per year.

What’s clear is that Senator McConnell’s and Congressman Boehner’s plan would do absolutely nothing to grow our economy, put people back to work and strengthen America’s middle class. Instead, it would take us back to the same exact failed economic policies that created the mess we’re in: cut taxes for millionaires and billionaires; cut rules for the special interests and big corporations and cut the middle class loose to fend for itself.

As Senator McConnell said yesterday, “if we want to begin to get ourselves out of this economic trough that we’re in, the only way to do that is to grow the private sector.” But his solution to growing our economy is to enact tax cuts that will significantly add to our nation’s deficit over the next decade. And he pretends that it would be paid for through a projected spending freeze, but fails to mention what he would freeze or cut, or that, as The Washington Post puts it, the freeze would be only “a drop in the bucket compared with his $4 trillion-plus plan.”

And this is not the first time Mitch McConnell said one thing and did another.

After voting against the bipartisan fiscal commission – a plan he enthusiastically supported when it was introduced in Congress – McConnell was quoted on “Meet the Press” last month saying that if the plan was responsible, he would “encourage [Republican Senate] members to support it.”

This is the same Senator McConnell who encouraged his caucus to vote against the fiscal commission amendment in the Senate. Unfortunately, this really shouldn’t come as a surprise to anyone. If the Congressional Republicans have been clear about anything over the past 19 months, it’s that they’re far more interested in political games and standing up for big special interests than offering serious solutions to our nation’s problems.

The Congressional Republicans have tried very hard over the past 19 months to convince the American people that they were the only ones who could be trusted with getting spending under control and reducing the deficit. This argument was always laughable, considering these are the same people that took a budget surplus at the end of the Clinton administration and turned it into a $1.3 trillion deficit. Now we have further evidence that, despite all of their bluster about deficits and out of control spending, it’s clear that the Congressional Republicans have no plans to fix these problems and is unprepared to govern responsibly.


Flashback to 2008:


NYT The Board:

In unveiling his final budget this month, President Bush again called for making his tax cuts from 2001 and 2003 permanent, rather than letting them expire as scheduled at the end of 2010. That would be irresponsible.

The chart below, from the Center on Budget and Policy Priorities using data from the Congressional Budget Office, illustrates why the tax cuts have to go

All else being equal, if the tax cuts are made permanent — without making up for the lost revenue by raising other taxes or cutting spending — debt-to-GDP will rise inexorably starting after 2010, reaching 100 percent in 2035 and more than 200 percent in 2050. Courting debt loads of that magnitude implies severe economic distress.

In contrast, if the tax cuts are allowed to expire, debt-to-GDP will dip a bit in the decades to come and then rise rapidly, to 100 percent by 2050, pushed up mainly by rising health care costs. That’s still a big problem, but not nearly as big as it will be if the tax cuts are also extended.

Click here for the chart


Let’s not let history repeat itself. Why is this a debate? A better question is why do right wing politicians want to give the wealthier Americans a tax cut? Putting America first is necessary and corporations are what the Republican Party represent.  Grasping the claim that the Tea Party movement is about government spending and lower taxes is difficult considering most of them, if not all, will be voting Republican if the two usual choices are left campaigning.


Vote Democrat. Obama/Biden 2012


Image hijacked from Heat Hoops

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  • whatajoke

    I clicked on this because I actually thought the author would articulate a logical argument. I have been wrong before. As for you libs, here is an idea:

    Stop Spending
    Stop Spending
    Stop Spending
    Stop Spending

    • http://FreakOutNation.com Anomaly100

      @whatajoke, I’m sorry, what was that you were saying?

    • Josh

      @whatajoke, Wait, wait, wait, Liberals have a spending problem?

      It’s going to cost money to pay the accrued debts, mend the neglected societal infrastructure and clean up the multitudinous messes of a decade of “conservative” government.

      Frankly, that Republicans even call themselves “conservatives” and everyone else “liberals” anymore is the real joke.

      • Hank

        @Josh, So….Bush did it. Right?? 😉

        • OMGawd

          @Hank, I’m glad we agree on that. Conservatives/republicans/tea partiers, don’t want Bush mentioned when it comes to spending, or when it comes to anything but he left this country in a MESS. I know your party thinks of Obama as a God since you call him, “Messiah”, “The One”, etc, but he’s just a man, albeit, a great man, but a man nonetheless. Enlighten me as to how he can clear our country of the debt Bush put us into in such a short time? Perhaps another war and he could make money from a company such as Halliburton…but that would be his money, not ours he’d be making. I don’t expect you to follow this but when it’s their personal money and war is at stake, they gave it no second thought and the money war costs America is its’ greatest debt maker.

          Ann Coulter, Palin, et al all love the word ‘bomb’ as in “bomb Iran.” Republicans never denounce them for this but say Obama needs to “grow a pair” because he doesn’t want the cost of war or want to watch our kids die at war before trying to sort out our differences.

        • Josh

          @Hank, You wink like there’s something wrong with answering “Yes”. Of course, that’s not even half of the story.

          The US government of the first half of the 2000s was thoroughly dominated by Republicans. During this period they pursued policies that were irresponsible at their best (not funding social security for the looming baby boomer retirement) to disastrously moronic at their worst (invading Iraq at the bottom of a recession while stridently refusing to pay for it out of pocket by cutting taxes). The consequences of that period of shortsighted, mismanaged and irresponsible government were finally beginning to fully manifest themselves as the Bush Administration was coming to an end and the Democrats were coming to power.

          I don’t blame Bush, I blame the entire Republican Party as it has existed for the past 15 years (which many Reagan-era conservatives are now renouncing). Their ideals, as demonstrated by their policies, not their campaigning, would make any truly conservative, fiscally responsible, capitalist-minded person lose sleep over the prospect of them regaining power.

    • Walter

      @whatajoke, what should America stop spending on? What is America spending it’s money on? Do we cut Unemployment and say if you don’t have a job, go do some work then you can eat? Do we cut Medicare and say if you are sick, too bad? Do we cut Veteran Services and say thanks for serving your country, there’s the door? Do we stop building the infrastructure so bridges fall down? Do we cut the the Department of Justice and say to heck with cases going to court-Due process? Do we cut Defense?

      Please suggest who gets cut?

      • Hank

        @Walter, All of the above.

      • Shiva

        @Walter, None of the above. The infrastructure is crumbling, many services were built in the 1920’s – 1950’s. We must spend a lot of money on America. Make it so small business’s can grow without being swallowed up by big companys and losing more jobs.

        We cut the money we send to other country’s.

        We cut nothing that goes to keep our unemployed and poor afloat. Anyone who wants to do that is not concerned about their fellow Americans and forgets that they may be in that predicament at any time.

        We cut the wars out. period. It will destroy poor saran that we arnt at war but we much. Foreign aid, drug wars, subsidy’s to Mexico alone kill us. We will be paying trillions to Afghanistan just to pay for their military. That cant happen. We bribe every country on the planet and have for years and years. Take that money and spend it here

      • drklassen

        @Walter, The military. We could cut it in half and still be outspending the rest of the world. Bring ALL foreign-based troops home, stop paying rent on foreign bases, and begin trimming troop levels.

    • Shiva

      @whatajoke, Hey wattajoke, do you want to stop spending on things like heathcare that drops the deficit?

      Dont come here and say stop spending liberals. You should have been here 12 years ago for that bit of pitter patter

      • Hank

        @Shiva, Bush did it again!!

        • Shiva

          @Hank, Thats what I like about you Hank, if you arnt trying to pull a Christine O’Donnell and whine/deflect “What about the Dems” when faced with her problematic past, you are running from your own partys actions :)

          Sorry, but you cant change history nor can you run from it.

        • OMGawd

          @Hank, You’re making a joke and I appreciate that since I’m rarely serious but perhaps not you, but most conservatives get crazy if you mention Bush and you know, the know and I know he screwed up. He’s human but he was also responsible and that’s how it will go down in history. This is a new day and age. We can not be held back by the fringe element such as O’Donnelll who can;t balance her own checkbook. What do you think will happen to spending if someone whose house is about to be foreclosed, and is spending donation dollars to pay her bills gets into an elected office?

    • http://www.newamericanparadigm.com Derek Young

      @whatajoke,
      The problem is that you could cut all discretionary spending and still not balance the budget. Taxes are obviously far too low, lower than any point in modern America.

  • Brandon

    “Why is this a debate? A better question is why do right wing politicians want to give the wealthier Americans a tax cut?”

    First off, it is not giving them anything, it is allowing them to keep more of what they earn. You act like they have been given a gift sent from above. Second, the weathly get tax breaks because they are the ones that pay the majority of the taxes in this country. The top 5 percent of wage earners pay nearly half of all the taxes in this country! Is that equitable and fair? Probably, but if anyone is going to receive a tax cut, don’t you think it might be the ones that actually pay them?
    http://www.american.com/archive/2007/november-december-magazine-contents/guess-who-really-pays-the-taxes

    • Shiva

      @Brandon, The whole thing is a fraud.
      Expire the tax cuts for the rich and you get 770 billion of badly needed $$$
      Expire the rest of the tax cuts and pick up another 3.7 trillion.

      Enough to get us out of the woods. You dont notice the difference in income taxes. You just take a little less back when you do your taxes.

      So instead of borrowing the 770 billion, we are still borrowing 3 + trillion.

      Let all the taxes expire and drop the every day taxes we pay. The phone taxes and the 10 billion other ones that kill us daily.

    • drklassen

      @Brandon, This assumes that the rich actually earn the monies given them. I really want to know how someone earns $10M in one year while someone else’s labor only earns them $25k.

  • Hank

    Josh – I’m not aware of a poll stating who from where is for what…..so I guess I would have to question why anyone else’s “assumption would be better than mine?

    I just think that if 50% of the population are getting by on what the OTHER 50% are paying in, most likely, they would like to see them pay in a bit more.

  • Hank

    OMG – “What do you think will happen to spending if someone whose house is about to be foreclosed, and is spending donation dollars to pay her bills gets into an elected office?”

    Not sure what would happen to spending, but perhaps we could call that Congressman…Senator Rangel!! 😉 Or Waters. Or Jefferson.

    Come on guys. Regardless your Political stripe. We could hardly do any worse than what’s in there now!!

    • http://FreakOutNation.com Anomaly100

      @Hank, Mr Man, I would never excuse Rangel so that makes your point moot. Neither of them belong in politics. OMG may or may not find Rangel ethical but I haven’t met another Democrat that excuses his behavior. Politicians are all slimy, but they should not be in office to serve themselves.

      • http://twitter.com/lantern42/status/24791841327 Sean

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      • Hank

        @Anomaly100, And I understand that. No reasonable person would excuse such activity.

        As always, I’m simply trying to draw attention to (sorry) the hypocrisy of making statements like, “Oh my god!!! What would we ever come to with individuals like O’Donnell in office??” when the current roster of politicians reads like a Post Office notice board!!

        The more accurate assessment would be, “How can we do any worse?”

        • OMGawd

          @Hank, Worse than O’Donnell? That’s a tough one. I’d have to search high and low for someone like that. You must admit, she is loco. (loca?)

      • Hank

        @Anomaly100, What I want to know is what are you doing up at 2 A.M. messing with THIS stuff? If I were Mr. Anomaly, I’d be complaining like a Big Dog!! 😉

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  • Hank

    @drklassen – http://finance.yahoo.com/news/Nearly-half-of-US-households-apf-1105567323.html?x=0&.v=1

    There are many other sources. This is just the first one I cam across.

    • drklassen

      @Hank, So only federal income taxes count as taxes?! What about sales tax, wage taxes, state and local taxes, real estate taxes (even renters pay this one, if vicariously). There’s a LOT more to taxes than just federal income taxes.

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  • Hank

    “Fifty-three percent of Americans agree with Mr. Obama that the tax cuts for the wealthy should be allowed to expire, while 38 percent do not, according to the poll, conducted Sept. 10-14.”

    “Slightly over half of all Americans – 52.6 percent – now receive significant income from government programs, according to an analysis by Gary Shilling, an economist in Springfield, N.J.”

    “About 47 percent will pay no federal income taxes at all for 2009.” (http://bit.ly/9RBNwx)

    So, what would you expect? Are you surprised? And do you think that is fair?

  • OMGawd

    @Hank, Are you saying that they do not count? This is a free country and with that comes a chance to make money. Those that do, should have to pay tax for what they get in life, roads, schools, etc. Who else should pay…the middle class as always? That is what it boils down to.

  • Hank

    @OMGawd, No. What I’m saying is that oddly (??) virtually the same percentage of Americans that are on Government assistance and the same percentage that pay no taxes…..APPROVE of raising taxes!!

    You don’t have to be Fellini to figure THAT one out!! That’s not necessarily an (get this one) Anomaly!! :-)

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  • http://FreakOutNation.com Anomaly100

    @Hank, Do not take my name in vain! 😉

  • Josh

    @Hank, Because the numbers are similar doesn’t really mean anything. All you’ve pointed out is a coincidence, and provided no evidence of correlation.

    In fact, “Red” states, with the exception of Texas, happen to be the primary beneficiaries of welfare programs; receiving more money than they pay into them. If the Dems are trying to bribe poor people into supporting their policies, it ain’t working. Taking that into account, I highly doubt that your 52.6% receiving significant income from the government also comprises the 53% of American’s in favor of the Democrats’ tax policy.

  • drklassen

    @Hank, Nobody “pays no taxes”. That’s a right-wing myth.

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  • KC

    Many of the people who earn over $250,000 or whatever the cutoff limit is are small business owners, the republicans point out. (For small businesses, income is taxed like it is personal income, and the small business isn’t a separate taxable entity)

    So, taxing that money they make would cut down on growth. On the other side of things, how do the rich get that money? What do the employees give up? Healthcare, a liveable wage? In a sense, these rich people’s wealth is created by the poor who work for them.

    HOW ABOUT DEVISING A TAX PLAN THAT TAXES RICH PEOPLE A LITTLE BIT MORE WHILE GIVING TAX BREAKS FOR SMALL BUSINESS?

    That probably won’t bring in as much money. Maybe it would. I do know one thing though. The US debt is set to go into uncharted territory if not controlled. Do you tax more? Historically, the tax rate for the rich was much higher than it is now. Do you spend less. I think so.

    Democrats have been known to be conservative from time to time. The key is a balance between spending on quality programs and not luxury and lining pockets. If you wonder which republican I am talking about, see who Clinton put his support behind in Cali. A guy who when he was governor chose to live in an appartment rather than a governor’s mansion.

    Another key is that America will have to learn to be a net exporter to get money to flow into the country.

  • Hank

    Josh – Democrats have held majorities in the Executive and Legislative Branches for 55 of the last 65 years.

    http://bit.ly/FuJvX

    Based on that, I’d say whatever economic straits we may now find ourselves in, the fault is at least shared.

  • Hank

    OMG – I’m not sure what your point is. The post was on the number of people that think it is perfectly okay to tax the wealthy more. I simply pointed out the number of those on some form of Government assistance and those paying no taxes is approximately the same as those who are in favor of higher taxes for the “wealthy”.

    Draw your own conclusions as I have drawn mine.

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  • Todd

    @Hank, Here’s another chart for ya Hank, showing the deficit grown Repubs compared to Dems. Share the blame? I don’t think so…

    http://en.wikipedia.org/wiki/File:US_Federal_Debt_as_Percent_of_GDP_by_President.jpg