“Unjustified And Wrong”: The Poor Should Not Bear The Burden Of A Deficit They Didn’t Cause
GOP leaders in Congress who can’t stop talking about family values are proposing an array of deep cuts to food stamps, child tax credits, healthcare for the poor, and even block grants that help states with daycare and adoption assistance. Left untouched are military spending that has ballooned over the last decade and tax breaks for the richest Americans. This isn’t courageous or pragmatic. It’s fiscally irresponsible and morally wrong.
Religious leaders are not letting Rep. Paul Ryan—architect of the GOP budget proposal—get away with the fiction that this budget reflects the values of his Catholic faith. The U.S. Conference of Catholic Bishops has sent a series of letters to GOP-controlled House committees arguing that these cuts are “unjustified and wrong.” Bishops wrote this week that “a just framework for future budgets cannot rely on disproportionate cuts in essential services to poor persons” and bluntly conclude that “the proposed cuts to programs in the budget reconciliation fail this basic moral test.” Catholic leaders have called for “shared sacrifice,” putting “unnecessary military spending” on the table and—in a pointed critique of Republicans’ fiscal fantasy that we can balance the budget by cuts alone—reference the need for “raising adequate revenues.” When Representative Ryan recently spoke at Georgetown University, almost 90 professors and priests at the Catholic university urged him to stop distorting Catholic social teaching to advance his radical ideological agenda. Expect faith leaders to keep challenging budget proposals and economic policies that undermine bedrock principles of justice, compassion, and the common good.
We should not pit national security against economic security. An effective military and a responsive government that doesn’t turn its back on vulnerable families are both achievable if we move beyond false choices. The working poor struggling in minimum-wage jobs, the elderly, and a squeezed middle class did not cause our deficits. They should not be asked to bear the greatest burden.
By: John Gehring, Washington Whispers Debate Club, U. S. News and World Report, May 10, 2012
“Repeated Unforced Errors”: The House GOP’s Big Gamble
In for a dime, in for a dollar. Or, in this case, $260 billion. That’s the amount of spending cuts in a bill Paul Ryan and House Republicans are preparing today for floor action later this week. The bill is meant to avert the deep cuts in defense spending mandated by the failure of the deficit supercommittee. But more broadly, this is the continuation of a fascinating gamble.
Here’s the story. If Congress doesn’t act, across-the-board cuts required by the supercommittee go into effect in January 2013 — cuts to both the Pentagon and domestic programs that both parties find unacceptable. There’s general agreement that the earliest Congress will agree on how to prevent those cuts will be in a lame duck session after the election. And yet what the two parties are doing about this fact couldn’t be more different.
The Democrats, who prefer smaller cuts paired with tax increases on upper-income taxpayers, have been in no hurry at all to advance that agenda in actual legislative terms. Senate Dems, as Republicans will shout until they’re blue in the face, did not pass a budget resolution this year. House Democrats, too, are reported to be leaning against offering an alternative to this new GOP bill.
By contrast, Republicans are holding vote after vote on their agenda — voting on unpopular measures that are the stuff of opposition researchers’ dreams, even though those bills are going nowhere. The measure they’ll be dealing with in later this week, if they stick to plans, slashes (among other things) “food stamps, funding for the 2010 healthcare and financial regulatory laws and the refundable child tax credit.”
Republicans appear to be taking these votes in order to give their Members a chance to go on record in favor of deep spending cuts before the real negotiations between the parties on averting the supercommittee-mandated cuts start in earnest. The only votes Dems are taking are against GOP initiatives. That may seem cowardly, but it’s also quite sensible, since anything they propose isn’t going anywhere, and those future talks will decide what really happens.
The real mystery is why Republicans are constantly voting on bills containing unpopular provisions (attacking the child tax credit???), especially since these votes are merely symbolic. It’s possible that it’s because they believe their own rhetoric and mistakenly believe voters will reward them for “courage.” It’s possible that inexperienced Members simply trust Ryan, and that he doesn’t think his agenda is unpopular. But whatever the motive, it’s hard to see what the House GOP is up to as anything other than a repeated unforced error that Democrats will likely exploit during the fall campaign.
By: Jonathan Bernstein, The Washington Post Plum Line, May 7, 2012
“Ignoring The Facts”: Romney’s Fiscal Fantasy Plan
Political arithmetic is always suspect, and one should always examine carefully the claims of those seeking votes. Smart observers have learned to distinguish between the claims of political candidates and their advisers and proposals that have been evaluated by independent scorekeepers such as the Congressional Budget Office (CBO).
This principle was aptly illustrated by the “budget analysis” Mitt Romney’s chief economic adviser, Glenn Hubbard, recently put forward. In a Wall Street Journal op-ed this week, Hubbard constructs a budget plan that he imagines President Obama might propose someday, engages in a set of his own extrapolations and then makes assertions about it. He does not discuss the actual Obama plan or how it has been evaluated by the CBO. Nor does Hubbard invest his credibility in defending the claims that Romney has made about his own fiscal plans. He simply states that “Yes, President Obama and Mitt Romney have budgets with competing visions. But Gov. Romney’s budget makes tough choices” — without delving into the specifics or trade-offs that Romney’s “tough choices” entail.
The president put forward a plan this year that would reduce deficits by more than $4 trillion over the next decade. It would bring federal discretionary spending to its lowest levels since the 1960s. It includes $2.50 in spending cuts for every $1 in additional revenue. It also asks everyone to pay his or her fair share of taxes, repealing the Bush tax cuts for families making more than $250,000 a year and closing loopholes and shelters such as preferences for private jets, hedge fund managers and offshore investments.
The independent CBO confirms that the Obama budget would stabilize the debt as a share of the economy — returning us to a tenable fiscal path. It would do that while allowing increased investments in education, research and infrastructure that are critical to stronger, shared economic growth in the years to come. By focusing on building a strong economy, the budget expands the tax base and reduces pressures for future tax increases.
Rather than criticize this approach, Hubbard ignores it — and instead chooses to invent assumptions that bear no relationship to the president’s actual policies. His figures are not explained, but they apparently arbitrarily assume that the president must raise taxes to pay for spending above a level of Hubbard’s choosing.
Rather than filling imaginary gaps in the president’s budget, which has been spelled out in sufficient detail to permit evaluation by independent experts, Hubbard should perhaps address some of the many gaps in Romney’s plans.
Start with the taxes. The Romney campaign has been very clear about what the former governor is promising: $5 trillion in tax cuts on top of extending the Bush tax cuts, with those benefits heavily weighted toward the country’s wealthiest taxpayers. Romney himself has acknowledged the lack of details, stating in reference to his tax plan that “frankly, it can’t be scored.” I have been party for many years to searches for “high-income tax shelters” that can feasibly be closed. I know of no reputable expert in either political party who would find that there is anything even approaching $5 trillion in potential revenue to be generated from this source.
Romney has also proposed a massive defense buildup, even while he says he will cut spending deeply enough to balance the budget. I think it’s clear why he won’t tell voters which cuts he would make: In the past, disclosing his planned budget cuts was politically damaging.
We have seen this movie before. When President Bill Clinton left office, our country was paying down its debt on a substantial scale. I was privileged as secretary of the Treasury to be buying back federal debt. George W. Bush campaigned on a program of tax cuts supported by economic advisers who were not subject to the rigors of official budget scorekeeping. The results — trillions of dollars of budget deficits — speak for themselves.
This is a consequential presidential election. As the country continues to recover from the largest economic crisis in generations, we need to strengthen the job market, address big fiscal challenges and build an economy that is based on sustainable, shared economic growth. Voters should have a chance to choose between clear alternatives. Obama — consistent with his obligations as president — has laid out a multiyear budget embodying his vision for the future, and it has been evaluated by independent experts. It is time for Romney to do the same.
By: Lawrence Summers, Opinion, The Washington Post, April 26, 2012
“Poor-People Programs”: Mitt Romney’s Budget In About 150 Words
Let’s try to make this as simple as possible. Money comes into the federal government through taxes and bonds. The vast majority of it is then spent on old-people programs, poor-people programs, and defense.
Mitt Romney is promising that taxes will go down, defense spending will go up, and old-people programs won’t change for this generation of retirees. So three of his four options for deficit reduction — taxes, old-people programs, and defense — are now either contributing to the deficit or are off-limits for the next decade.
Romney is also promising that he will pay for his tax cuts, pay for his defense spending, and reduce total federal spending by more than $6 trillion over the next 10 years. But the only big pot of money left to him is poor-people programs. So, by simple process of elimination, poor-people programs will have to be cut dramatically. There’s no other way to make those numbers work.
By: Ezra Klein, The Washington Post, February 25, 2012
Republican Paradox: The Party That Can’t Say Yes
For days, the White House has infuriated its Democratic allies in Congress by offering House Republicans more and more in exchange for a deal to raise the debt ceiling and prevent default. But it was never enough, and, on Friday evening, it became clear that it may never be enough. Speaker John Boehner again walked away from the “grand bargain” he had been negotiating with President Obama, leaving the country teetering on the brink of another economic collapse.
At the White House podium a few minutes later, the president radiated a righteous fury he rarely displays in public, finally placing the blame for this wholly unnecessary crisis squarely where it belongs: on Republicans who will do anything to upend his presidency and dismantle every social program they can find. “Can they say yes to anything?” he asked, noting the paradox of Republicans, who claim that financial responsibility and debt reduction are their biggest priorities, rejecting yet another deal that would have cut that debt by at least $3 trillion.
Mr. Obama, in fact, had already gone much too far in trying to make his deal palatable to House Republicans, offering to cut spending even further than the deficit plan proposed this week by the bipartisan “Gang of Six,” which includes some of the Senate’s most conservative members. The White House was willing to cut $1 trillion in domestic and defense spending and another $650 billion from Medicare, Medicaid and even Social Security.
Much of that savings would have come from raising the eligibility age for Medicare benefits and reducing the cost-of-living increases that elderly people depend on when receiving their health and pension benefits. It could have caused significant damage to some of the nation’s most vulnerable people.
The “bargain” would require that alongside these cuts, tax revenues would go up by $1.2 trillion, largely through a rewrite of the tax code to eliminate many deductions and loopholes. That’s substantially less in revenue than the $2 trillion in the “Gang of Six” plan. The problem is that while much of the cutting would start right away, most of the revenue increases would be put off, in part because a tax-code revision would take months, and in part to allow House Republicans to say they did not agree to any specific tax revenue increases.
Democratic lawmakers were rightly furious when they heard about these details this week, calling the plan wholly unbalanced. But, in the end, it was Mr. Boehner who torpedoed the talks. He said Friday evening that he and the president had come close to agreeing on $800 billion of the revenue increases (the equivalent of letting the upper-income Bush tax cuts expire as scheduled next year — not much of a heavy lift) but could not stomach another $400 billion the White House wanted to raise through ending tax loopholes and deductions.
So, on the eve of economic calamity, the Republicans killed an overly generous deal largely over a paltry $400 billion in deductions. Mr. Obama was willing to take considerable heat from his liberal critics over the deal, and the Republicans were not willing to do a thing to anger their Tea Party base. As the president forcefully said, there is no evidence that House Republicans are capable of making those tough decisions. If last-ditch talks beginning Saturday fail, they will have to take responsibility if the unimaginable — a government default — happens in 10 days and the checks stop going out.
By: The New York Times, Editorial, July 22, 2011
Share This Blog
Unknown Feed- An error has occurred; the feed is probably down. Try again later.
mykeystrokes.com 