House GOP still demanding its budgetary pound of flesh

“The pound of flesh, which I demand of him,
Is dearly bought; ’tis mine and I will have it.”

– Shylock
“The Merchant of Venice”

Is the goal to do what’s best for the country?

Or do Republicans in Washington simply want their promised pound of flesh from the government, regardless of the consequences?

Mark Zandi, chief economist of Moody’s Analytics and a former economics adviser to John McCain, reports that passage of the budget cuts demanded by House Republicans “would reduce 2011 real GDP growth by 0.5% and 2012 growth by 0.2%. This would mean some 400,000 fewer jobs created by the end of 2011 and 700,000 fewer jobs by the end of 2012…. Significant government spending restraint is vital, but given the economy’s halting recovery, it would be counterproductive for that restraint to begin until the U.S. is creating enough jobs to lower the unemployment rate.”

Last week, a private study by Goldman Sachs produced for its investor clients estimated that passage of the GOP budget cuts would reduce US economic growth by 1.5 to 2 percentage points in the second and third quarters of the year. As Zandi points out, spending does have to be cut over the long term, just as over the long term, taxes have to go up. Addressing our long-term fiscal situation will require that we take both steps.

But neither step is a good idea at the moment for the same reason: It would withdraw money and demand out of an economy already starving for demand.

“This is particularly true given the added threat presented by rising oil prices,” Zandi writes. “Unrest in the Middle East has pushed up the price of crude oil by about $10 per barrel; West Texas Intermediate is selling for almost $100 per barrel, and a gallon of regular unleaded gasoline has risen to about $3.25 nationwide. If sustained, these prices will shave about 0.2% from real GDP growth in 2011, a disappointing but manageable outcome. If oil prices approach $125 barrel, and gasoline reaches $4 per gallon, growth will slow sharply and unemployment will begin rising again. Should fuel prices return to their all-time high near $150 per barrel for oil and $4.50 per gallon for gasoline, the economy would sink back into recession.”

Nonetheless, House Speaker John Boehner and his colleagues continue to rail against what they call President Obama’s “job-crushing spending binge;” they continue to demand the spending cuts that they believe they have coming to them as a result of the midterm elections. The spectre of a forced government shutdown looms. According to Zandi, a short, symbolic shutdown wouldn’t have much impact, but the longer it goes, the more damage it will do:

“A shutdown that lasted into April would be a problem, however. Not only would this disrupt a wide range of government operations and significantly cut the output of government workers, but the hit to confidence could be serious. Consumer, business and investor sentiment is much improved from the depths of the recession, but it remains extraordinarily fragile. A government shutdown lasting more than a week or two could easily undermine confidence as questions grow about policymakers’ ability to govern. This would be fodder for a new recession.”

I don’t believe that House Republicans are willfully, knowingly steering us toward that outcome. But I do believe that through years of rhetoric and rigid ideological discipline, they have convinced themselves that no other course is possible.

– Jay Bookman

414 comments Add your comment

Normal

February 28th, 2011
3:39 pm

But it’s still all about getting more jobs, right?

jm

February 28th, 2011
3:41 pm

“Is the goal to do what’s best for the country? ”

Yes. Deficits, infinitely into the horizon, will lead to infinite pain. And as some additional research I’ve read over the last few days indicates, there’s not a tax rate problem, there is, at the core a HUGE spending problem. And not just too much spending, poorly allocated spending as well.

Normal

February 28th, 2011
3:41 pm

The GOP is becoming a self fulfilling prophecy of crash and burn

Jay

February 28th, 2011
3:41 pm

Care to share that research, jm?

jm

February 28th, 2011
3:42 pm

Well, I wonder why the GS and Moody’s reports are so damn different, if the dismal science is so exact. Answer: it is not (exact), or even remotely exact.

josef nix

February 28th, 2011
3:42 pm

“Oh, my daughters! Oh, my ducats!”

jm

February 28th, 2011
3:42 pm

Happy to, give me a couple minutes to get you a link.

jm

February 28th, 2011
3:44 pm

Be prepared to dedicate a SERIOUS amount of time.

http://www.kpcb.com/usainc/

jm

February 28th, 2011
3:44 pm

266 pages worth

Dave R.

February 28th, 2011
3:45 pm

“A shutdown that lasted into April would be a problem, however. Not only would this disrupt a wide range of government operations and significantly cut the output of government workers, but the hit to confidence could be serious. Consumer, business and investor sentiment is much improved from the depths of the recession, but it remains extraordinarily fragile. A government shutdown lasting more than a week or two could easily undermine confidence as questions grow about policymakers’ ability to govern. This would be fodder for a new recession.”

What a load of dog squeeze!

I guess Mr. Zandi, and of course, Jay, missed the whole Nov 2010 election cycle.

The voters WANT Washington to cut spending. They don’t particularly CARE if there is a shutdown. The GOP ran on this platform (including the possibility of a shutdown if Dems didn’t go along) and they were elected in record numbers. No smoke or mirrors here.

Deal with it!

jm

February 28th, 2011
3:48 pm

And for more thoughts on how incredibly risky this accumulation of debt is…. see this interesting interview with one of the smarter people on the planet.

http://www.businessweek.com/magazine/content/11_10/b4218047676960.htm
( a charlie rose interview) not 266 pages long

josef nix

February 28th, 2011
3:48 pm

Hath not a the Republicajns eyes?… If you prick him, does he not bleed? …And if you wrong us, shall we not revenge? Why, revenge. The villainy you teach me, I will execute,,,”

Just to make sure we keep Shylock in context here… :-)

AmVet

February 28th, 2011
3:48 pm

I say make the petty, egotistical Boner sit at the back of Air Force One. Or maybe in the cargo section. (is it pressurized?)

I mean it worked out so well for Crybaby Newt & the Petulant Cons last time! (Clinton’s approval rating rose to the highest it had been since his election. And it likely helped with his re-election.)

Dave R.

February 28th, 2011
3:50 pm

“A deficit by any other name would smell.”

Just channeling my inner Bard. :)

Dave R.

February 28th, 2011
3:52 pm

“I mean it worked out so well for Crybaby Newt & the Petulant Cons last time!”

Different times, different campaigns, different situations, different President, AmVet.

I don’t think you can equate one with the other.

josef nix

February 28th, 2011
3:54 pm

DAVE

“Tom’s a fool” :-)

Normal

February 28th, 2011
3:55 pm

Josef,
So Shylock was a Republican? :)

My Favorite from my favorite Sharespeare play is ‘cry havoc, and let slip the dogs of war’…

sulley

February 28th, 2011
3:56 pm

What is with the constant railing against the GOP! Where were the Democrats? Why do they get a “pass”? Who held control of the executive and legislative branches until January? Who currently controls the executive branch and the Senate? Do you not realize the national deficit increased more in the last two years than 8 years under Bush? Who was in control the last two years?

Previously, Wall St. was the blame for everything that happened before and since 2008. Now, you hold up Moody’s Analytics and Goldman Sachs as the experts. Just because Mark Zandi is linked to Sen. McCain that gives him some credence to conservatives. How many other economists are saying the opposite of Mr. Zandi. Why did you leave their POV out? Just not convenient for your bias, huh?

I am confused. Please pick a line and stick with it. This is not worth my time.

Dave R.

February 28th, 2011
3:57 pm

From Wiki: “Zandi’s analysis of the impact of an economic stimulus package on the United States economy was cited by Christina Romer and Jared Bernstein in their report on President Barack Obama’s proposed American Recovery and Reinvestment Plan.[4] Zandi uses old-style Keynesian models in the spirit of Nobel Prize winner Lawrence Klein. The utility of such models to gauge the impact of fiscal stimulus has been questioned by Harvard economist Robert J. Barro.”

Ahhhhh, no wonder he wants to keep government open . . .

Another liberal tool. Has Krugman called for no shutdown as well?

josef nix

February 28th, 2011
3:58 pm

And if it’s the Bard we’re channeling here, don’t want to leave out the Moor!

?But I will wear my heart upon my sleeve
For daws to peck at: I am not what I am.”

DEM

February 28th, 2011
3:58 pm

Zandi and Goldman are just assuming that the Keynesian “multiplier” bears a relation to what happens in the real world. Essentially the same model was the source of the stimulus employment projections, which turned out to be incredibly wrong. At this point, you have to ask what it’s going to take for people to realize that maybe Keynes was wrong.

And even if these projections had any credibility, the debt remains a massive problem that, left unchecked, will make the great recession look like a day at the park. But I suppose we should continue running T-bill auctions to “stimulate” short-term employment until those auctions simply fail, is that it?

Keep up the good fight!

February 28th, 2011
3:59 pm

AmVet…you mean after all the complaints about Nancy not using commercial planes, Boehner is flying AF3 (or some govt plane)…….

anonymous_coward

February 28th, 2011
3:59 pm

Remind me again how much we’ve paid since 2001 on wars, security apparatus, eavesdropping, and the TSA hasn’t contributed all that much to the deficit considering what we’ve gained?

StJ

February 28th, 2011
4:00 pm

Tax hikes withdraw money out of the economy, too. But who cares about the taxPAYER, anyway? (Not Democrats.) Spend and tax…hope and change…hell in a handbasket.

…and by the way, that hit to consumer confidence is already coming, thanks to the gas prices. (Speaking of withdrawing money out of the economy…)

0311/0317 - 1811/1801

February 28th, 2011
4:00 pm

Jay:

“House GOP still demanding its budgetary pound of flesh”

Do you forget what happened last November 2nd ?

“House GOP still demanding its budgetary pound of flesh”

Your headline should read:

“Fiscally conservative Americans who gave the House to Republicans demand their votes count !”

josef nix

February 28th, 2011
4:00 pm

Normal

The Bruin seems to think he was! Closet anti-Semite… :-)

Midori

February 28th, 2011
4:02 pm

Josef,

you’re killing me here :lol:

Jimmy62

February 28th, 2011
4:02 pm

Moody’s. Aren’t they one of the ratings agencies that was giving sub-prime mortgage securities AA ratings, leading to massive economic failure?

Frankly, if Moody’s say the sky is blue, I’m gonna put all my money on the sky being red.

Your column should read, “GOP determined to cut spending and save the future of the country, despite Democrat obstructionists.”

[...] another arrow in …GOP spending plan would cost 700000 jobs, new report saysWashington PostHouse GOP still demanding its budgetary pound of fleshAtlanta Journal Constitution (blog)Report: House budget plan would kill 700k [...]

Logical Dude

February 28th, 2011
4:04 pm

If our economy is THAT dependent on the price of oil. . .
Sayyyy, when was the last time oil got that high? Oh wait, it was RIGHT BEFORE THE RECESSION.

If the Cost of EVERYTHING goes up because of the price of oil, then there is less money to buy stuff, and that means fewer people needed to make stuff, which means more people out of work.
Gee, is it the Cost of OIL that is causing ALL OF THIS?

AmVet

February 28th, 2011
4:05 pm

“Fiscally conservative Americans…Republicans…”

Now thass funny.

Jimmy62

February 28th, 2011
4:05 pm

The German government, whose economy is booming (relatively) despite carrying the rest of Europe, recently mentioned that their economists have studied the facts and pinned the Keynesian multiplier at 0.8 at best. So for every dollar the government spends, 20 cents is destroyed.

Dave R.

February 28th, 2011
4:05 pm

Is the Bruin a closet . . . anything? :)

AmVet

February 28th, 2011
4:06 pm

“Fiscally conservative Americans…Republicans…”

Now that’s funny.

You guys *never* met a spendaholic with an R after his name you wouldn’t vote for…

jm

February 28th, 2011
4:07 pm

The crisis is not in the future. It is now. 10 more years under the status quo and our nation will be broken. Possibly sooner.

Bookman a bigot?

February 28th, 2011
4:08 pm

Calling people Shylocks is generally understood to be anti-semitic. Somehow it doesn’t surprise me that Jay uses such insults. After all, the left only likes diversity of color, not thought.

josef nix

February 28th, 2011
4:08 pm

“Neither a borrower nor a lender be;
For loan oft loses both itself and friend,
And borrowing dulls the edge of husbandry.”

Jus’ sayin’

JohnnyReb

February 28th, 2011
4:08 pm

Obama tinkles away billions in stimulus funds with huge sums going to public sector unions where nothing changed to avoid the inevitable. State/city/county workers are laid off later instead of sooner. Are Dems concerned of the gigantic waste? No, the money laundered its way to the DNC as designed. Now, Repubs want to make sensible cuts to fat or no-return programs and Dems are squealing chicken littles. We need it, but not now. We need it, but not there. Tell me, where and when? The “economists” foresee gloom and doom. Do Dems have a monopoly on economists or just the ones with outcomes they like?

carlosgvv

February 28th, 2011
4:08 pm

“Is the goal to do what’s best for the country”?

No, that never has been the goal with Republicans. Their goal is to do the bidding of their corporate masters, the ones who fund their elections and re-elections. Dig deep enough into these “budget cuts” and you will find it will be business who will benefit, not the people. 700,000 fewer jobs does NOT mean any loss of corporate profits. On the contrary, it means 700,000 less people on the payrolls and more work for the employees they have.

AmVet

February 28th, 2011
4:08 pm

Jimmy, you’re right, those white collar criminal at Moody’s and Standard & Poors should be in an 8 X 12 for their part in the attempted corporate destruction of capitalism.

But our liberal president decided to “look forward’ rather than hold criminals accoutnable to the rule of law…

Jimmy62

February 28th, 2011
4:10 pm

Logical dude: Oil is at least a big contributor to the bad economy. We had three years to ramp up our own drilling and explorations after the last big spike, but since we had Obama running things, not a damn (useful) thing has happened to improve our position, or protect us from Middle East oil dependency.

Dave R.

February 28th, 2011
4:10 pm

“Bookman a bigot?”

No, just misguided on so many levels. :D

0311/0317 - 1811/1801

February 28th, 2011
4:12 pm

Well, there you go. Looks like Barry is in trouble ………………

Headline: “Obama to face Shariah court?”

“Cleric says president ‘must embrace Islam’ or be tried when Muslims take over U.S.”

“President Obama must embrace Islam as a way of life or face the consequences of a trial under the Shariah Islamic court system, declared British extremist cleric Anjem Choudary.

Choudary, founder and former chief of two Islamic groups disbanded by the British authorities under anti-terror legislation, is planning a Washington protest later this week in which he says he will call on American Muslims to revolt against the country and implement Shariah law.”

Dave R.

February 28th, 2011
4:12 pm

“No, that never has been the goal with Republicans.”

Yeah, because generating deficits farther than the eye can see (a largely Democrat-controlled Congressional issue) is always what’s best for the country.

josef nix

February 28th, 2011
4:13 pm

a bigot?

Well, the Nazis did stage it following Kristallnacht….

jt

February 28th, 2011
4:13 pm

The price of oil and food is not going up.

The worth of the American dollar is going down.

Keynesian/Krugman/Bookman/Progresso/Tapeworm economics causes this.

Moderate Line

February 28th, 2011
4:13 pm

jm

February 28th, 2011
3:41 pm
“Is the goal to do what’s best for the country? ”

Yes. Deficits, infinitely into the horizon, will lead to infinite pain. And as some additional research I’ve read over the last few days indicates, there’s not a tax rate problem, there is, at the core a HUGE spending problem. And not just too much spending, poorly allocated spending as well.
++++++
Jay

February 28th, 2011
3:41 pm
Care to share that research, jm?
++++++++++++++++++
According to OMB 2011 we will have the lowest receipts for the government since 1950 which is estimated to be at 14.4% of GDP. Keep in mind that in 1950 we did not have Social Security and Medicare. Just by factoring out Social Security receipts which is 5.4 the tax rate for non SSI is the lowest since 1942.

In 2016 revenues are expected to rise to 19.3 of GDP which is higher than all but one year under Bush.

Outlays in 2016 are expected to be at 22.5 which is higher than any year since 1946 except for two years.

Considering that Defense, Social Security and Medicare comprise 53% of spending and we are only collecting 58% of our current outlays we would have to cut 83% of all other spending in order to balance the budget.

If unemployment goes down revenues will go up thus cutting the deficit. Long term are spending and revenues are above their historical averages

Doggone/GA

February 28th, 2011
4:15 pm

“Somehow it doesn’t surprise me that Jay uses such insults”

It does surprise me that you don’t know that he didn’t

josef nix

February 28th, 2011
4:16 pm

Scout

Hath not a Muslim eyes? Hath not a Muslim hands, organs,
dimensions, senses, affections, passions; fed with
the same food, hurt with the same weapons, subject
to the same diseases, heal’d by the same means,
warm’d and cool’d by the same winter and summer
as a Christian is?

0311/0317 - 1811/1801

February 28th, 2011
4:16 pm

josef:

Check out this fascinating 1779 military order ! As far as I could research it’s legit.

The part about the “relief teepees” is quite interesting ………. I wonder if they had DADT back then?

The original handwritten copy dated July 6, 1779 is in the National Archives, Washington, D.C.

http://www.hampton.lib.nh.us/hampton/history/military/legionpost35/OldestSpecialOrder6July1779.htm

AmVet

February 28th, 2011
4:18 pm

The name Shylock, is more synonymous with being a loan shark than with being an anti-Semite…

And to Moderate’s point, each and every year since 1969, the United States Congress has spent more money than its income.

N-GA

February 28th, 2011
4:18 pm

Highest FIT rate 1958 (Eisenhower) – 91%
Highest FIT rate 2011 (Obama) – 35%

Logical Dude

February 28th, 2011
4:19 pm

Jimmy62,
You are correct that there has been very little progress on the homefront for creating more domestic oil. However, there was this little oil spill in the Gulf of Mexico that kinda put the US on a “oh wait” moment.

It’s not all the President’s fault, since he has striven for higher mileage vehicles (which will have a greater impact sooner than any drilling). If the US would just use less oil, that would have a greater impact than any drilling. However, drilling is still necessary, as it will give us a slight edge that wouldn’t already be there (in having more oil reserves).

josef nix

February 28th, 2011
4:19 pm

Doggone

Well, yes, he did. Shylock is the quintessetial anti-Semitic character in English letters…I don’t think he meant it that way, though. I just don’t think he thought about it. Sin of omission, not commission! Three Hail Marys ought to be sufficient… :-)

jm

February 28th, 2011
4:19 pm

How’s everyone feel about 70% tax rates?

Using another simple mechanical illustration, covering the 2010 budget deficit (excluding onetime
charges) by taxes alone would mean doubling individual income tax rates across the board,
to roughly 26-30% of gross income, we estimate.

0311/0317 - 1811/1801

February 28th, 2011
4:21 pm

josef @ 4:16

Of course as everyone in the world.

And I am sure Congressman Peter King feels the same way as the hearings soon start.

What’s your point?

AmVet

February 28th, 2011
4:22 pm

“Now, Repubs want to make sensible minuscule, symbolic, totally ineffective cuts…”

Jay

February 28th, 2011
4:22 pm

Really jt?

The price of food is going up in the Middle East — one of the causes of the turmoil there — China, Russia and Europe. They’re not paying in dollars.

The price of oil is likewise going up. Energy is up 12 percent in Europe, for example. They’re not buying it in dollars, they’re buying it in euros. In fact, the dollar/euro exchange is about what it was in the summer of 2007.

And Moderate, without looking, I’d guess that the OMB numbers you cite that taxes will reach 19.3 of GDP by 2016 assume that the Bush tax cuts will finally be allowed to end.

godless heathen

February 28th, 2011
4:23 pm

I often read Dems here wailing about all the spending by Bush 43 and now Republicans want to reduce spending by an almost insignificant amount and it’s portrayed as a disaster.

TaxPayer

February 28th, 2011
4:23 pm

If Republicans think that shutting down the government is the proper approach for them to right their past wrongs, then go for it. They won’t do it though. They’re cowards. They’re scared that it will cost them in the next election. They’re more concerned with getting elected than with anything else.

josef nix

February 28th, 2011
4:23 pm

Scout
@ 4:16

Ooooh! That’s too funny!!

AmVet
@ 4:18

Oh, please! You know better than that!

jm

February 28th, 2011
4:23 pm

“And Moderate, without looking, I’d guess that the OMB numbers you cite that taxes will reach 19.3 of GDP by 2016 assume that the Bush tax cuts will finally be allowed to end.”

That’s probably correct.

N-GA

February 28th, 2011
4:24 pm

When interest rates return to normal, NOTHING Congress does will do much to reduce the federal budget. Interest on the national debt will go through the roof! Good old supply and demand will dictate rates.

Dave R.

February 28th, 2011
4:24 pm

“And to Moderate’s point, each and every year since 1969, the United States Congress has spent more money than its income.”

And last November, people across all spectra in the country voted to stop that process.

Doggone/GA

February 28th, 2011
4:25 pm

“Well, yes, he did. Shylock is the quintessetial anti-Semitic character in English letters”

And I don’t agree. He quoted a play, and he attributed the quotation to the character in the play who said it. It has nothing to do with the nationality of that character. All it does it describe a kind of mentality and the results that mentality expects to get.

Road Scholar

February 28th, 2011
4:25 pm

I feel another business tax break on the way! or at least another anti abortion bill…….

Boehmer, where are the jobs? You gotta have some on the way since you want to trash 700,000 with your proposed cuts!

josef nix

February 28th, 2011
4:25 pm

Scout

The point? Just channeling the Bard as per the Bruin’s lead…

carlosgvv

February 28th, 2011
4:25 pm

Dave R.

I believe congress is now controlled by the Republicans.

jm

February 28th, 2011
4:26 pm

Keeping in mind, that includes ALL expiring Bush tax cuts, including not just those on the rich.

Hillbilly Deluxe

February 28th, 2011
4:27 pm

“Neither a borrower nor a lender be;
For loan oft loses both itself and friend,
And borrowing dulls the edge of husbandry.”

Or as my great-Uncle used to say, “Son, don’t ever let anybody give you anything; the price is always too high”.

As for the members of both parties in Congress, I see them as fobbing, hedge-born, ratsbane. (Since we’re into Shakespeare today).

http://www.pangloss.com/seidel/shake_rule.html

josef nix

February 28th, 2011
4:28 pm

Doggone

Agree or disagree…like I said, it was the first play produced in Nazi Germany following Kristallnacht…the “nationality” of the character? Have you now converted to Zionism? :-)

Personally, I’m rather fond of “The Merchant of Venice,” but I also know a little of the history of the time and place it was produced…have you read Marlowe’s “The Jew of Malta?”

Peadawg

February 28th, 2011
4:28 pm

Liberals complaining about spending cuts…..

Same Sh* Different Day

Doggone/GA

February 28th, 2011
4:29 pm

“I often read Dems here wailing about all the spending by Bush 43″

Not the spending…the borrowing to spend

josef nix

February 28th, 2011
4:29 pm

Hillbilly

That link is about the best thing ever posted on this blog!

AmVet

February 28th, 2011
4:29 pm

“And last November, people across all spectra in the country voted to stop that process.”

You’re not serious are you?

30 consecutive years of spendaholic Republicans, and NOW presto, chango! We have a new and improved variety of fiscal conservative?

98% of them do not have the moral courage to do the one thing that would fundamentally change the equation – touch the DoD budget.

Hell they won’t even acknowledge corporate welfare yet…

if so then every republian will be fired in 2012 for malfeasance.

Dave R.

February 28th, 2011
4:30 pm

“I believe congress is now controlled by the Republicans.”

As usual, you would be wrong about that, carlos. The HOUSE is controlled by Republicans. The SENATE and the White House are still controlled by Democrats. And historically, one or both houses of Congress have been controlled by Democrats more than the GOP in the past 30 years. And Congress controls the spending.

Logical Dude

February 28th, 2011
4:30 pm

jm,
And letting the tax cuts expire on everyone is the right thing to do. Perhaps not in the middle of a recession, but as we come out of it, yes, it’s the right thing to do.

jt

February 28th, 2011
4:30 pm

Jay

February 28th, 2011
4:22 pm

“Really jt?

The price of food is going up in the Middle East — one of the causes of the turmoil there — China, Russia and Europe. They’re not paying in dollars.

The price of oil is likewise going up. Energy is up 12 percent in Europe, for example. They’re not buying it in dollars, they’re buying it in euros. In fact, the dollar/euro exchange is about what it was in the summer of 2007.”

Oil and food is traded/benchmarked in dollars.
The same culprits in America are knee-deep in the euro-zone(Government saches, IMF,etc…).
If you do not believe that the American dollar has AND IS STILL losing its worth because of BS Keynesian/Krugman/Tapeworm economics, then I would suspect that you studied economics at Harvard before becoming an AJC opinion writer.

jm

February 28th, 2011
4:30 pm

America is one giant bubble, getting closer to popping…..

Keep up the good fight!

February 28th, 2011
4:31 pm

Bank of America (B of A) is the first corporation to be targeted by US Uncut, the transatlantic offspring of the United Kingdom-based anti-austerity group UK Uncut, which held its first demonstration to protest corporate tax evasion in late 2010.

As a voice at the megaphone of the Portland protest said, “The United States does not have a deficit problem. The United States has a revenue problem.” According to a 2008 report by the Government Accountability Office, 25 percent of the biggest corporations pay no federal income tax. B of A, the recipient of $45 billion in bailout funds, shuttles its would-be tax dollars into 115 offshore tax havens. Meanwhile, budget deficits are cited as justification for pay freezes for public workers and cuts to heating assistance programs, Social Security, and other social safety nets.

“The $3 in my wallet is more than ExxonMobil, GE and Bank of America paid in taxes last year, combined,” said Carl Gibson, founder of the first American Uncut group, US Uncut Mississippi, in a release prior to the February 26 protests.

“There’s a direct connection between corporate tax dodging and what’s happening to real people’s lives,” said Gibson. “Because of overseas tax havens and other tax loopholes, US corporations are making profits in America but barely paying taxes here. If we close those loopholes, we wouldn’t have to be cutting back on firefighters, library hours and student loans.”
_________________________

Perhaps we have a real group of Patriots…..NO Representation without Taxation!

0311/0317 - 1811/1801

February 28th, 2011
4:31 pm

josef:

10-4 !

But while I have your attention, check something else out ………. it says most of what I have been trying to say for months ………….. and it’s by a Muslim doctor !

SHORT VERSION:

“Anxiety on all sides of upcoming House hearing on radicalization of U.S. Muslims”

By Michelle Boorstein
Washington Post Staff Writer
Saturday, February 26, 2011; 5:31 PM

“In some ways, Zuhdi Jasser doesn’t match the profile of the typical Muslim American. He’s an active Republican who has supported U.S. wars in Afghanistan and Iraq, advocates for Israel and says his faith harbors “an insidious supremacism.”

That final point is the core tenet of Jasser, a father of three, Navy veteran and a former doctor to Congress.

Through his nonprofit group, the American Islamic Forum for Democracy, he debates other Muslims and appears on mostly conservative media to press Muslim leaders to aggressively oppose a “culture of separatism.” He wants clerics to disavaow scripture that belittles non-Muslims and women and to renounce a role for Islam in government.

Into the void comes Jasser, who sits on the board of a nonprofit group that made two controversial films about the dangers of radical Islam. The Clarion Fund says on its Web site that the growth of the American Muslim population “is raising eyebrows from sea to shining sea. . . . And if you think that a growing Muslim population cannot threaten America, just look at Europe.”

LONG VERSION:

http://www.washingtonpost.com/wp-dyn/content/article/2011/02/26/AR2011022600330.html?hpid=topnews

Dave R.

February 28th, 2011
4:34 pm

AmVet

February 28th, 2011
4:29 pm

“And last November, people across all spectra in the country voted to stop that process.”

You’re not serious are you?”

Actually, yeah, I am. Regardless of your animosity towards Republicans, AmVet, voters pretty much wholesale sent Dems packing in record numbers, and it was largely due to their gross overspending (and a good bit of tone-deafness on the part of Pelosi and Co.).

But I forgot. Polls and election results are only valid when you agree with the outcome, right?

Jean-Paul Marat

February 28th, 2011
4:37 pm

Jay “But neither step is a good idea at the moment for the same reason: It would withdraw money and demand out of an economy already starving for demand.”

But Jay. If the Republicans admitted for one second that money left in the economy through spending would at least implicitly admit that there might just be some ounce of truth, somehow, some way, to the Keynesian claim that spending can bolster an economy during times of lagging demand. And if they did that, that would risk the entire rationale for the entire revanchist conservative counter-revolution that is just now after 30 years at the brink of its greatest victory. Since conservativism at this moment stands at the brink of total domination of American political institutions (this is what Wisconsin is all about ultimately) the stakes have never been higher than they are at this moment. Any hesitation now, however slight, would risk the entire campaign to roll back the New Deal that has been underway for decades. That explains the strange and utterly out-of-step seeming intransigence of the Republican party – which is now more inseparable from the conservative movement than ever before – at this moment.

AmVet

February 28th, 2011
4:39 pm

All I can say Dave, is that if you honestly believe they are going to do anything more than whistle past the graveyard, I’m pretty surprised.

The insanely misnamed fiscal conservatives never found a hemorrhaging patient they wouldn’t slip a couple of band aids on.

And trust me, these new “conservatives” that got elected? They are bandaid boys.

Keep, but don’t you understand corporations don’t pay taxes.

That is only for you and me…

The Original Get Real

February 28th, 2011
4:39 pm

That is exactly why they were voted into office Oh Liberal and Progressive One…..your precious democrats are losing public opinion as well they should. If the government shut down a larger percentage of the country would blame the democrats….this is not 1995

Joe

February 28th, 2011
4:40 pm

Jay said, “I don’t believe that House Republicans are willfully, knowingly steering us toward that outcome.

I wish I could give them the benefit of the doubt too. I can’t. Does anybody honestly think that they’d be pushing such a plan if a Republican was in the White House?

In the previous Congress, the GOP did everything they could to prevent jobs from being created and the economy from going…via the Senate filibuster. Preventing additional aid to states, blocking/slowing/preventing additional aid to the unemployed, tax cuts for the wealthy, blocking the 2010/2011 budget from passing,… It worked, leading to Republican gains in both houses of congress in the 2010 elections.

Knowing that the corporate press is complicit (how many major news outlets are shining a light on the reports from Goldman Sachs, Moody’s, and others?), the GOP knows that they can get away with slowing the economy with impunity while blaming the Dem in the White House. To regain power, given that they’re motivated by power, Republicans have every incentive to hurt the economy. That’s exactly what they intend to do.

Disgusted

February 28th, 2011
4:41 pm

Keep in mind that in 1950 we did not have Social Security and Medicare. Just by factoring out Social Security receipts which is 5.4 the tax rate for non SSI is the lowest since 1942.

Gee! So it was the Tooth Fairy who was paying benefits to my grandfather! Or maybe SS took a hiatus in the 1950s.

Kids—get them off this blog.

godless heathen

February 28th, 2011
4:41 pm

“Not the spending…the borrowing to spend”

But borrowing to spend by BHO is just fine.

0311/0317 - 1811/1801

February 28th, 2011
4:41 pm

“BIG STINK BY THE BAY !”

“San Francisco’s big push for low-flow toilets has turned into a multimillion-dollar plumbing stink.”

“Skimping on toilet water has resulted in more sludge backing up inside the sewer pipes, said Tyrone Jue, spokesman for the city Public Utilities Commission. That has created a rotten-egg stench near AT&T Park and elsewhere, especially during the dry summer months.

The city has already spent $100 million over the past five years to upgrade its sewer system and sewage plants, in part to combat the odor problem.”

I can’t stop laughing at those knuckleheads out there !

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/02/27/BAVP1HUSUD.DTL#ixzz1FIAjlhFn

Keep up the good fight!

February 28th, 2011
4:46 pm

Scout Zero…Laugh away…..because the Georgia knucklheads certainly have done well working out Georgia’s water issues.

josef nix

February 28th, 2011
4:48 pm

Scout

That’s just the point. Muslims are no more monolithic than are Christians, Jews, Buddhists, Hindus or what have you. As a practicing Baptist, you might want to take a closer look at Sufism…the two branches of their respective faiths have a great deal in common…

carlosgvv

February 28th, 2011
4:51 pm

Dave R.

Add up all the Republicans in the House and Senate and then all the Democrats in the House and Senate and see which number is highest. Then, go and listen to Rush Limbaugh. There’s a good boy.

Doggone/GA

February 28th, 2011
4:52 pm

“But borrowing to spend by BHO is just fine”

No, it isn’t…but when you have the Senate GOP members threatening to filibuster any bill that has what we need to stop that…tax HIKES…he doesn’t have much choice at the moment. The day will come when tax hikes will be unavoidable, but it isn’t here yet.

jm

February 28th, 2011
4:52 pm

We need an “era of responsibility”

Jean-Paul Marat

February 28th, 2011
4:52 pm

To continue …

Republicans understand what Democrats almost never understand (or at least haven’t since around the time of Roe v Wade), which is the fact that battles won become part of the new normal and are extremely hard to change (hence their ferocious attacks on ObamaCare). The Republicans, being the cynical and Machiavellian ideologues that they are, know that the public has a general tendency towards inertia and ultimately, whatever they claim, tend to trust the ultimate wisdom of its leaders and remain locked in a stupor of resignation and acceptance of the inevitability of the status quo, partly because of the sheer complexity of political issues but also because of the enormous difficulty of mobilizing any kind of resistance to the corporatization of American life and the complete brute power of big money in it. That’s why they know that if they can just win battles like the one raging now in Wisconsin without drawing too much attention the public will generally forget and will then accept the new configuration of things as the new normal, with the result that resistance will seem ever more futile and those willing to fight will be ever more marginalized. This is one of the reasons that the implications of Citizens United, when we step back and look at American politics as an ideological battleground, are quite simply incalculable. That ruling completely changes the calculus on every issue in barely fathomable ways.

Dusty

February 28th, 2011
4:53 pm

I think Shakespeare is shaking in his musty boots,

When “journalists” use his verse for liberal cahoots.

jm

February 28th, 2011
4:54 pm

The entitlement programs are not self-funded…they are unfunded
liabilities. They are the single biggest component of spending going
forward.
Ben Bernanke, Chairman of the Federal Reserve Testimony before House Budget Committee, June 9, 2010

jt

February 28th, 2011
4:55 pm

Who needs the Federal congress anyways?

We should cut out the middle man by shutting congress down, and send our taxes directly to GE,Monsanto,Boeing, Government Saches, Government Motors,and the SEIU.

And maybe Big Pharma.

harvey

February 28th, 2011
4:56 pm

It is a shame that they can’t just fire the 3 out of 4 government workers who aren’t doing their jobs to get the budget back in line.

Disgusted

February 28th, 2011
4:59 pm

. . .the GOP knows that they can get away with slowing the economy with impunity while blaming the Dem in the White House. To regain power, given that they’re motivated by power, Republicans have every incentive to hurt the economy. That’s exactly what they intend to do.

Yep. The GOP drove the car into the ditch and then blamed Obama for the wreck when he got in to try to get it out. And it worked! The same people who wrecked the economy got put back into power during the 2010 election because the typical American voter has zero memory and is merely a walking appetite seeking the source of the next meal.

So don’t expect the GOPers in the House to have any concern whatsoever about the effect of their proposed cuts on the still-recovering economy. They have every reason to see the recovery fail, and one reason in particular: the 2012 elections.

That actor on the Oscars show last night had it right. Thousands of people engaged in unethical and probably illegal acts to bring the housing industry and Wall Street to their precipitous fall, along with wiping out half the American workers’ 401ks. And yet, not one of those shady people has seen the inside of a jail cell. We need an honest GOP spokesperson who will step up and say, “Let us screw you royally again!”