Dear Friends,
It seems to me extremely disingenuous for the politicians to have created this budget problem and are now using it to attack each other. The ramifications, for not only the US economy, but for the World economy as a whole is enormous. We have watched them nail this problem together plank by plank for years, and now they stand astride their creation, claiming it will destroy the universe unless the are given even more power. Taxes must be raised and investments must be made else it is woe to us all!
When George HW Bush was elected he ran on a pledge, “Read my lips, No new taxes!” But the first thing he did, was negotiate with the democrats to control the deficit… and raised taxes. The tax hike lowered the economy a bit, but the greater result was, that his political base lost trust in him. Bush lost the election to Clinton largely as a result of stabbing his base in the back.
The modern analogy is the newly elected republicans, the Tea Party republicans. They were elected on a platform of no new taxes and even pledged as much. To get them to turn on their base and raise taxes is a suicidal to their political careers. Since they are the biggest roadblock to the progressives dismantling of the Capitalist system in the US that is a great motivation to Obama and his progressive friends. So we can see the stakes are very high.
That is why the Tea Party caucus in the republican party are so insistent and the reason the progressive caucus in the democrat party are so insistent, Both side of the political spectrum see this as a existential issue to them. The democrats believe that they can effectively vilify the Tea Party caucus as unreasonable, and responsible for all the economic problems facing the World today, in this way the progressives can regain total power for another election cycle or two, furthering their plan to bankrupt the US and blame Capitalism.
Finally however, the republicans are doing… something. They are supposed to pass a bill and send it to the Senate. The Senate can then reject it, amend it or pass it as they see fit. It is about time the republicans acted spending bills must come from the House. The democrats demagogue the bill as a nonstarter but they conveniently forget they can amend the parts they see as deficient. After all, isn’t that the way divided government is supposed to work?
One side passes something, the next body amends it then the two get together in committee to reconcile their version of the bill. Then the reconciled bill goes to the President for his signature. (That was the gist of the cartoon I watched as a child on bills and Laws). The republicans are supposed to pass a spending bill on Tuesday. Then send it to the Senate. We will see if it gets any consideration at all.
As for the democrat plan to cut some perks for the “rich.” The most advertised example is the corporate jet “loop hole.” It is vilified as a way CEO fat cats can get a corporate jet at taxpayers expense. While it may be true that a corporation that pays a 25% tax rate would have 25% of a corporate jet covered at taxpayers expense the rest would be at the shareholders expense. This argument misses the fact, however, that there is an industry that derives it’s income from the purchase and sale of corporate jets.
The effect on this largely US industry is never examined. The possible effect on the well paid jobs is not even considered. How many fewer jets will be sold if the ‘Loop hole” is closed? How many jobs lost? But, is it even really a loop hole? For it to be a legitimate loop hole it must not have any reasonable purpose except to enrich a few at the expense of the many. In this case the question we must ask ourselves is, “Is there a legitimate corporate reason to have a corporate jet?” Because if there is, then it is no a loop hole at all, but if there is no legitimate reason for a corporation to ever have a corporate jet, then it is a loop hole and should be closed.
We have to examine these questions in the light of the fact that the people that run the show are responsible for the outcome. They love to create a problem and then blame others. If we want to really decide what party or faction is working for the benefit of the people or are merely egoists we can ask ourselves this question, “What side or faction is taking political risks by voicing their ideas and writing them into bills and actually voting on them, and which party or faction is only making speeches, threatening old people and simply demagogue any idea they hear?” The answer to that question will clarify this one, “What is the actual goal of the progressives?”
