Debt-Ceiling Deal is Rotten Deal for Taxpayers

During a caucus meeting with his fellow Republicans on the proposed TARP bailout in September 2008, then-House Minority John Boehner explained the huge expenditure was a “crap sandwich”; but explained he was going to vote for it anyway.

The sort of panic and pressure that came with the vote on TARP often causes members of Congress to make votes they ultimately regret. And earlier this very week, the White House and congressional leaders from both parties cooked up another dish worthy of the label with which Boehner branded TARP.

This bipartisan debt deal is being hailed by supporters as bringing significant spending “cuts” to Washington’s massively bloated budget. Unfortunately for taxpayers, it does not do so. What congressional leaders have given the country is a budgetary sleight-of-hand that might very well land them behind bars if they were in the private sector; however, in Congress this is what passes for serious public policy.

The deal places caps on discretionary outlays and purports to cut spending by $917 billion over the next 10 years; it also requires a commission composed of members from both chambers and both major political parties to come up with $1.5 trillion in spending cuts by the end of this year. If the commission fails to come up the with spending cuts, a trigger in the deal would require $1.2 trillion in across the board spending cuts split evenly between domestic programs and defense.

Congress will raise the debt ceiling in two steps – the first now, and the second increase in February 2012 – by $2.4 trillion through the end of 2012; the largest increase in the national debt in the nation’s history.

Chris Edwards, an economist with the Cato Institute, notes that the deal “will ‘cut’ the 2012 budget of $3.6 trillion by just $22 billion, or less than 1 percent.” Those cuts also pale next President Obama’s own projected $1.65 trillion deficit in his now-scrapped FY 2012 budget.

The cuts are back-loaded; making it unlikely they will ever come to fruition. Moreover the agreement does absolutely nothing to reform entitlements, which represent nearly $62 trillion in funded liabilities. Other tricks the Congress and presidents of both political parties employ to mask the true size of the budget – such as declaring an expenditure an “emergency” even though it is nothing of the sort – remain imbedded in this package; further ensuring its heralded “cuts” will not materialize.

All in all, this is simply another day in the life of the federal government; much promised but nothing new delivered.

by Bob Barr — The Barr Code

46 comments Add your comment

[...] Obama suffers political setback in debt dealReutersUPI.com -Los Angeles Times -Atlanta Journal Constitution (blog)all 13,260 news [...]

[...] to tackle hard stuff on debtKAITAfter debt fight, Obama moves to jobsUPI.comLos Angeles Times -Atlanta Journal Constitution (blog) -Reutersall 13,260 news [...]

Joe

August 3rd, 2011
5:38 am

What can we expect from 2 stubborn opponents whose leaders are too bull-headed to give up any ground?

This debt “compromise” effectively accomplished nothing. They raised the debt ceiling by roughly the same amount they cut our debt, which means realistically, there were NO spending cuts. And then they leave the shady details to a future committee to solve. Meanwhile, no raised taxes means no increased revenue. So basically, we’re in the same hole we started with, but they just post-poned the inevitable.

[...] on debtKAITAnalysis: Obama suffers political setback in debt dealReutersLos Angeles Times -Atlanta Journal Constitution (blog) -Detroit Free Pressall 13,260 news [...]

[...] to tackle hard stuff on debtKAITAfter debt fight, Obama moves to jobsUPI.comLos Angeles Times -Atlanta Journal Constitution (blog) -Detroit Free Pressall 13,260 news [...]

[...] Bush tax cutsThe Associated PressDebt deal raises pressure on Medicare providersLos Angeles TimesDebt-Ceiling Deal is Rotten Deal for TaxpayersAtlanta Journal Constitution (blog)Detroit Free Press -Reuters -Boston Globeall 13,260 [...]

[...] fight, Obama moves to jobsUPI.comDebt deal raises pressure on Medicare providersLos Angeles TimesAtlanta Journal Constitution (blog) -Reuters -Detroit Free Pressall 13,260 news [...]

[...] Bush tax cutsThe Associated PressDebt deal raises pressure on Medicare providersLos Angeles TimesDebt-Ceiling Deal is Rotten Deal for TaxpayersAtlanta Journal Constitution (blog)Detroit Free Press -Reuters -Boston Globeall 13,260 [...]

kudzoo

August 3rd, 2011
5:54 am

Shameful, yet we continue to send these charlatans back to DC to continue to destroy this country’s future.

[...] tax cutsThe Associated PressRochester Democrat and Chronicle -Green Bay Press Gazette -Atlanta Journal Constitution (blog)all 13,141 news [...]

Jimmy62

August 3rd, 2011
7:41 am

What’s really sad is how many people think it’s a bad deal because it had any cuts at all, and not enough tax increases. And then those people call the Tea Party selfish for wanting real cuts. The selfish folks are the ones who are sabotaging the future to continue an unsustainable present course. We just don’t have the money for a giant welfare state, and the bigger the welfare state becomes, the less people there are actually making the money to pay for it.

jconservative

August 3rd, 2011
8:04 am

All that happened in this deal is that the president got his debt ceiling increase. Anything else in the bill will be cancelled by the 113th Congress in 2013. The FY 2012 deficit of $1.5 trillion will be reduced to $1.5 trillion. That’s right, no change. Nothing was cut but corners.

Barr got this one 100% correct.

redweather

August 3rd, 2011
8:34 am

This just in! Now that the debt ceiling debacle has reached its inevitably craven conclusion, Wall Street is concerned about what Congress is going to do about entitlements. You know, things like Social Security and the Medicare Drug Plan that you and I pay for. Is this the same Wall Street that the American taxpayer bailed out in 2008 to the tune of about $700,000,000,000? You bet your thin wallet it’s the same Wall Street.

caslosgvv

August 3rd, 2011
8:49 am

If I understand it correctly, lawmakers had a choice of either voting for this bill or being willing to let our Country suffer a catastrophic default. I really wonder what those who voted no will tell the people when running for their next re-election. I also wonder how many will be dumb enough to vote for them again.

the watchdog

August 3rd, 2011
9:22 am

I see “wind power” as the solution to the debt crises in the United States. The vast majority of revenue in the U.S. flows out and overseas to the middle east in payment for oil. Wind power the endlessly renewable source of clean energy can provide all the energy needs of this once great and proud country. Clean air is essential for a high quality of life. Need I say more? Ask the people in the little hamlet of Cape Vincent on the St. Lawrence river, how they like clean, fresh pure air flowing over from Canada. Another byproduct of wind power will be to allow the middle east oil producers to return to their primative life style and start focusing on themselves rather than their clandestine activities outside their country,

Plato

August 3rd, 2011
9:33 am

Only in Washington. They also conveniently choose to ignore the fact that by increasing the debt limit by a couple Trillion $$$, that the interest expense for that little increase will eat up any budget cuts. Think about the monthly payment due on a $2.5 Trillion loan. That’s essentially what they did.

Darwin

August 3rd, 2011
10:19 am

To quote Ronald Reagan – “Deficits Don’t Matter.” It’s the service on the debt (interest) as a percentage of GDP that matters. It’s actually lower today (approx 2%) than in the 80s and 90s (closer to 3%). As long as we can make the interest payments, it’s no big deal. Actually, we need spending to help minimize the effects of a lousy economy that started under Bush. But really, don’t let me get in the way of your “facts.”

Yep

August 3rd, 2011
10:30 am

“Debt-Ceiling Deal is Rotten Deal for Taxpayers”

Indeed it is. Can’t wait to see Obama get shellacked next November.

Stevie Ray

August 3rd, 2011
10:36 am

If any of you are going to the kitchen soon, can you grab me a ice cold “Billy Beer” please?

sam

August 3rd, 2011
10:44 am

There has been no compromise. I was disgusted when the Simpson Commission report was given short shrift. It had serious cuts in it and cuts that needed to be made to get us on the right track. The way we are now, we are like the man who cuts off his foot so he can have something to eat, and then he keeps cutting himself up just to stay alive, until he can’t cut anymore. Then he dies. So this country will go. Our military consumes substantially more than all the other countries COMBINED. More than was spent during the Vietnam war. What is wrong with this picture?

Halftrack

August 3rd, 2011
10:52 am

The best news about this “Bill” is that it will give voters a chance to see how well it works now and the Nov. 12 election date. We can then decide which bums need to be thrown out. Keep asking yourself “Am I better off than I was yesterday.” Maybe we can get some more “Tea Party” candidates who know what the Constitution requires.

Jefferson

August 3rd, 2011
11:08 am

At the end of the day the tea reps solved no debt problems. An out is an out.

Barack

August 3rd, 2011
11:23 am

“I did not say Yes we can…I said Kick the can”

clem

August 3rd, 2011
11:35 am

relatively easy to reduce federal budget the position attrition due to retirements….do not replace or backfill….if the position retiring in high position fill likely thru promotion but ultimately don’t fill position even if on lower end….make sure managers have decent span of control and unit not top heavy…get rid of political appointees (more pork)…..remember inch by inch it’s a cinch.

John

August 3rd, 2011
11:47 am

“To quote Ronald Reagan – “Deficits Don’t Matter.” It’s the service on the debt (interest) as a percentage of GDP that matters.”

This is true to a point, but a government can spend to a point where it crowds out private investment in the economy, causing slower growth, etc. Suffice it to say, we’re seeing that now.

WOODSTOCK MIKE

August 3rd, 2011
11:48 am

“At the end of the day the tea reps solved no debt problems. An out is an out.”

At the end of the day Obama is looking worse and worse, no leadership, even those in his own party don’t side with him…

I was hoping he was going to be good for America but now it’s clear he’s just in over his head.

Our Lord and Savior Jesus Christ will crush the heads of the perverted New World Order integrationist crowd and their devilish black minions

August 3rd, 2011
12:09 pm

Charlotte Iserbyt was right on target. The federal government’s Department of Education has deliberately dumb-ed down Americans. The proof is in the pudding. Before Americans were dumbed down, 1776, their perverted brothers and sisters attempted to have them drink from the dishonorable cup of usurpation and subjugation. But in the end, it proved to be a pathological perverted dream. Americans responded to them like a God-fearing honorable people.

For Example:

“In every stage of these Oppressions we have petitioned for Redress in the most humble terms: Our repeated Petitions have been answered only by repeated injury. A Prince, whose character is thus marked by every act which may define a Tyrant, is unfit to be the ruler of a free people.

Nor have we been wanting in attentions to our British brethren. We have warned them from time to time of attempts by their legislature to extend an unwarrantable jurisdiction over us. We have reminded them of the circumstances of our emigration and settlement here. We have appealed to their native justice and magnanimity, and we have conjured them by the ties of our common kindred to disavow these usurpations, which would inevitably interrupt our connections and correspondence. They too have been deaf to the voice of justice and of consanguinity. We must, therefore, acquiesce in the necessity, which denounces our Separation, and hold them, as we hold the rest of mankind, Enemies in War, in Peace Friends.

We, therefore, the Representatives of the united States of America, in General Congress, Assembled, appealing to the Supreme Judge of the world for the rectitude of our intentions, do, in the Name, and by Authority of the good People of these Colonies, solemnly publish and declare, That these united Colonies are, and of Right ought to be Free and Independent States, that they are Absolved from all Allegiance to the British Crown, and that all political connection between them and the State of Great Britain, is and ought to be totally dissolved; and that as Free and Independent States, they have full Power to levy War, conclude Peace, contract Alliances, establish Commerce, and to do all other Acts and Things which Independent States may of right do. — And for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our Lives, our Fortunes, and our sacred Honor.”

Amen?

JC

August 3rd, 2011
12:12 pm

“Our Lord and Savior Jesus Christ will crush the heads of the perverted New World Order integrationist crowd and their devilish black minions ”

I command thee to return under thine rock ye heathen

Our Lord and Savior Jesus Christ will crush the heads of the perverted New World Order integrationist crowd and their devilish black minions

August 3rd, 2011
12:14 pm

After the federal government’s Department of Education deliberately dumbed down Americans, their brothers, sisters, and aliens in the federal government have returned to have them drink from the dishonorable cup of subjugation and usurpation. But this time, Americans are responding like atheistic enslaved people.

For Example:

“During a caucus meeting with his fellow Republicans on the proposed TARP bailout in September 2008, then-House Minority John Boehner explained the huge expenditure was a “crap sandwich”; but explained he was going to vote for it anyway.

The sort of panic and pressure that came with the vote on TARP often causes members of Congress to make votes they ultimately regret. And earlier this very week, the White House and congressional leaders from both parties cooked up another dish worthy of the label with which Boehner branded TARP.

This bipartisan debt deal is being hailed by supporters as bringing significant spending “cuts” to Washington’s massively bloated budget. Unfortunately for taxpayers, it does not do so. What congressional leaders have given the country is a budgetary sleight-of-hand that might very well land them behind bars if they were in the private sector; however, in Congress this is what passes for serious public policy.

The deal places caps on discretionary outlays and purports to cut spending by $917 billion over the next 10 years; it also requires a commission composed of members from both chambers and both major political parties to come up with $1.5 trillion in spending cuts by the end of this year. If the commission fails to come up the with spending cuts, a trigger in the deal would require $1.2 trillion in across the board spending cuts split evenly between domestic programs and defense.

Congress will raise the debt ceiling in two steps – the first now, and the second increase in February 2012 – by $2.4 trillion through the end of 2012; the largest increase in the national debt in the nation’s history.

Chris Edwards, an economist with the Cato Institute, notes that the deal “will ‘cut’ the 2012 budget of $3.6 trillion by just $22 billion, or less than 1 percent.” Those cuts also pale next President Obama’s own projected $1.65 trillion deficit in his now-scrapped FY 2012 budget.

The cuts are back-loaded; making it unlikely they will ever come to fruition. Moreover the agreement does absolutely nothing to reform entitlements, which represent nearly $62 trillion in funded liabilities. Other tricks the Congress and presidents of both political parties employ to mask the true size of the budget – such as declaring an expenditure an “emergency” even though it is nothing of the sort – remain imbedded in this package; further ensuring its heralded “cuts” will not materialize.

All in all, this is simply another day in the life of the federal government; much promised but nothing new delivered.”

Amen?

GEORGIA GOP REDNECKS LIKES A POLICESTATE

August 3rd, 2011
1:16 pm

ANOTHER CASE OF THE CRACKER POLICESTATE SHUTTING DOWN A LIL GIRLS LEMONADE STAND IN IOWA!
WITH PEOPLE LOSING THEIR JOBS,THE CRACKER POLICE ARE STOPPING AMERICANS FROM MAKING A HONEST LIVING!
GOD IS ON THE WAY BACK FOR YOU SATANIC RACISTS REDNECK EVIL CRACKERS,ITS YOU HILLBILLIES WHO LOVE THE NEW WORLD ORDER SATANIC POLICESTATE!
GET READY FOR THE MARK OF THE BEAST COMPUTERCHIP THAT YOU STUPID CRACKERS WANT TO PLACE UNDER EVERYBODY SKIN!
P.S. WHY ARE ALL THE ANTI-CHRIST WHITEMEN IN THE MOVIES?
WHY DO WHITE PEOPLE WORSHIP SATAN?
WHY DO WHITE PEOPLE LISTEN TO SATANIC MUSIC?
WHY DO WHITE PEOPLE CELEBRATE HALLOWEEN,THE DEVILS SABBATH?
HURRY UP GOD AND COME GET SATANS CHILDREN THE (WHITES)

GEORGIA GOP REDNECKS LIKES A POLICESTATE

August 3rd, 2011
1:20 pm

GOP STANDS FOR (G.OD O.UTTA P.LACE)

JC

August 3rd, 2011
1:21 pm

GEORGIA GOP REDNECKS LIKES A POLICESTATE

cause the blacks keep voting democrat and stay po on day welfare

mike "hussein" smith

August 3rd, 2011
1:31 pm

The gop had to have some bragging rights after yet another tea party fiasco, so let them claim budget cuts all they want.

GEORGIA GOP REDNECKS LIKES A POLICESTATE

August 3rd, 2011
1:42 pm

TO YOU STUPID @$$ REDNECKS,REMEMBER WHITE TRASH OUT NUMBER BLACKS ON WELFARE 72% TO BLACKS 12% ON WELFARE!
YOU PO CRACKERS IN KENT,ALA,GA,FLA,SOUTH & NORTH CAROLINA,MISS,LA,OHIO,VIR,TEX,LA,ARK AND THE REST OF AMERICA OUT NUMBER ALL THE BLACKS AND HISPANIC ON WELFARE!

Jefferson

August 3rd, 2011
1:45 pm

It matters very little to me who next president is because there is little I can do to control it. The system has become disfunctional due to the fact politicians and people don’t understand it is a shared gov’t with balance of power built in. What is true, when given a chance to get out of debt, the Rs have little power to do it, when they do have the power to , they don’t, based on their record. Give a projection of good times, they give it back to the creditors. President Obama was never given a chance to get out of debt and never will.

GEORGIA GOP REDNECKS LIKES A POLICESTATE

August 3rd, 2011
1:46 pm

I THOUGHT BUSH 8 EIGHT YEARS OF TAXCUTS WOULD CREATE JOBS? NOT
THE GOP FOOLS YOU DUMB PO REDNECKS!
IM GLAD MOST OF GEORGIA’S BANKS ARE SHUTTING DOWN,THAT MEANS YOU REDNECKS ARE GETTING POORER AND POORER!

Boss

August 3rd, 2011
4:29 pm

Kind of hard to follow an ignorant moron like Georgia GOP Redneck

gman

August 3rd, 2011
5:28 pm

The debt ceiling is made of glass. Raising the ceiling has shattered any illusions of a balanced federal budget.

Essence

August 3rd, 2011
6:05 pm

“What congressional leaders have given the country is a budgetary sleight-of-hand…”

Yeah Bob that is exactly my impression. The conservatives totally caved; all this media talk about how the Dems lost big is crap. Not one spending item has been cut. Their maneuver of shifting the hard decision making to a committee is so lame.

Yep

August 3rd, 2011
6:35 pm

Jefferson is gonna be a sad little left winger come 2012.

Painful Truth

August 4th, 2011
6:35 am

I think this plan is actually capable of getting both the liberals and the conservatives to fully agree on something. This plan is terrible.

No liberals like it, no conservatives like it, moderates don’t like it either.

After all the hype, we get nothing. That’s what this plan is folks, it’s nothing. All we did was put off another round of “what to do to prevent the nation from collapsing” for another year.

I sometimes wonder if the leaders of both Parties behind closed doors openly tell each other “there’s really no getting out of this, this country is gonna collapse, so we’ll argue on who’s plan can delay it a little longer”.

Everything in life has a “point of no return”. Any logical person would conclude the US economy has crossed it.

Toby

August 4th, 2011
7:43 am

All we know for sure is the other guy did it.

ApostasyUSA

August 4th, 2011
9:54 am

Oh well America, this is your doing.

You asked for this. You voted in these idiots who don’t know a thing about government except that “it’s bad”. You liked it when the Supreme Court told corporations that they could have more power than the voter with infinite donations for Republican puppets who care only about deregulating and lowering taxes. You voted for the tea party freaks who promised you that government is the enemy. You voted for people who don’t want the job, but would rather have it over someone who actually cares!!

It’s your fault America. Land of the stupid and home of the blames. You let the angriest and out of touch Republicans of our country take hold of the House of Representatives in a failed pusillanimous attempt to take the entire Congress.

You want someone to blame? Look at you pathetic self in the mirror. Look at yourself while you ponder the rights you took away from gay people just to garner some votes out of the bigots. Peer into your selfish eyes while you consider all the religious people who think life begins at conception but ends at birth and their anger that was exploited simply to get people who hate government in government.

Republicans leaders aren’t to blame; they told you strait to your face that they had sold their souls to the highest bidder.

Republicans voters are to blame, every last one of you, from the fake “fiscal conservatives” all the way down to the angry people hating “social conservatives”. You are all playing the fool and one day you will all be forgotten.

lilguy

August 4th, 2011
10:21 am

Racism tore this country apart once and its happening again. When a congressman states that his sole aim is to take down the president of the United states, what else did you expect? In the end when, he said he would only deal with the president, it was because he wanted to force him to eat this bitter sandwich. Everything that the President tries to do to improve the economy, the republicans block. Maybe with this round of cuts, America will realize, that the only thing holding up the economy is government money.

Gerald West

August 4th, 2011
4:10 pm

Dead right, Mr. Barr! There’s no middle ground between sense and nonsense, so the President and the Democrats in the Congress should never have negotiated or given in to the “compromise” that Speaker Boehner pulled from the seat of his pants at the last minute.

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