GOP retreat on payroll tax not a good sign
In one sense, the complete surrender of House Republicans on a 10-month payroll-tax reduction was welcome news. It probably means that at a fragile point in this economic recovery, we won’t have a $100 billion tax increase on working people, the people whose purchasing power will be needed most to drive the economy in future months.
But in another sense, the announcement was a microcosm of Washington’s larger failure. Because Republicans and Democrats could not come to an agreement as to how to offset the tax reduction, that $100 billion will simply be added to the nation’s growing debt.
Once again, Republicans insisted that the tax cut be “paid for” through spending cuts alone, while Democrats insisted that it be offset by a combination of spending cuts and higher taxes on more affluent Americans.
Once again, no agreement was possible. So rather than take the political hit for blocking a deal and endangering the economy, House Republican leadership capitulated entirely. (We’ll see today whether rank-and-file Republicans are willing to follow suit).
At some point, we ARE going to have to deal with our budget problems. At some point, a major deal will have to be reached that includes significant spending cuts and a hefty boost on the revenue side as well. Both elements — revenue and spending — will have to be addressed, as a matter of political reality and as a matter of mathematics.
But as the payroll-tax debate demonstrates, our leaders — particularly on the Republican side — aren’t yet capable of making such a deal. Trapped in an ideological cul de sac of their own design, they have made it clear that their concern for protecting wealthier taxpayers takes precedence over addressing the national debt.
In addition, the Republican refusal to compromise actually makes things easier for the Democrats. As long as the GOP remains so intransigent on taxes, Democrats can play the reasonable party and claim to be willing to offer spending cuts, knowing that their willingness will not be seriously tested.
It’s a helluva way to run a democracy.
– Jay Bookman
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© 2012 The Atlanta Journal-Constitution
306 comments Add your comment
King of Everything
February 14th, 2012
8:36 am
Yeah !
Granny Godzilla
February 14th, 2012
8:38 am
“ideological cul de sac ”
great image.
USinUK
February 14th, 2012
8:39 am
me, I just love how debt is only a bad thing if it happens under a Democratic president … under Bush / Bush Senior / Reagan??? nope. nary a whisper of a problem.
Never Ending Ride
February 14th, 2012
8:41 am
It alls seems like a rollercoaster ride that never ends! Like old Mitch McConnell said; our goal is to make sure that President Obama is a one term president. The Republicans see the country as a game of chess and will stop at nothing but…. checkmate….(beating President Obama)
King of Everything
February 14th, 2012
8:42 am
Since we gave “Job Creators” hefty tax cuts and they didn’t create job, we should take the tax cuts back. We have 8 years of Clinton and Bush to compare.
stands for decibels
February 14th, 2012
8:43 am
I love me some cheese-eatin’ surrender monkeys in the morning.
It’s a helluva way to run a democracy.
True, but sometimes you need to endure some short-term bipartisan wankery to clear out some of The Stupids so that significant, life-altering legislation *can* be passed.
And let’s face facts, it’s doubtful any of that’s gonna happen until after the first week of November, at the earliest.
stands for decibels
February 14th, 2012
8:44 am
nope. nary a whisper of a problem.
well, you hear about it *after* they lose. Then they’re all “Bush spent like a drunken sailor, I tells ya.”
Paul
February 14th, 2012
8:45 am
I’ll venture to say that to the majority of Americans, who follow the details of this stuff as often as they track changes in degree-days, what will stick in their minds is “Democrats can play the reasonable party and claim to be willing to offer spending cuts, knowing that their willingness will not be seriously tested” by Republicans.
It’s impressions that guide a lot of folks. Just general, over-all impressions.
And ‘cul-de-sac’ is good, as it implies you can always get out the way you got in. But really, given what I see of what got them there, ’straightjacket’ ain’t bad, either.
Steve - USA (I support "None Of The Above")
February 14th, 2012
8:46 am
If the “Democrats insisted that it be offset by a combination of spending cuts and higher taxes on more affluent Americans.” Then why don’t they just vote NO.
Asking for $100 Billion Spending Cuts is really that unreasonable? What a world we live in now.
carlosgvv
February 14th, 2012
8:46 am
The Republicans make no effot to hide their “concern for protecting wealthier taxpayers” from rank and file voters. They believe these voters will believe everything they are told, no matter how illogical and absurd. Unfortunately, the Republican electorate has dumbed down to where this is a pathetic fact, Let’s just hope Democratic voters have a bit more intelligence and keep Ronald McRomney, Newy Grinrich, Rick Sanatorium and Ron Boy Paul from getting any political power.
Normal
February 14th, 2012
8:47 am
I suspect the GOP has a trick up its sleeve, but I also suspect that if they remain true to form, they will forget which sleeve it was up…
Mick
February 14th, 2012
8:47 am
If this is a chess game, the only possible outcome for this year is a very sour stalemate..
USinUK
February 14th, 2012
8:47 am
“Then they’re all “Bush spent like a drunken sailor, I tells ya.””
and “I was TOTALLY against Bush / GOP congress spending … no really!”
JohnnyReb
February 14th, 2012
8:48 am
Jay, how disingenious of you. Obama’s budget can’t even win support of his own party. Not as Jack Lew stated, it only takes a simple majority to pass the budget in the Senate yet Harry won’t bring it to a vote. There are 53 Democratic votes in the Senate. If your party has all the answers, why not vote on Barry’s plan?
Peadawg
February 14th, 2012
8:48 am
” Both elements — revenue and spending — will have to be addressed”
Not as long as we have our current crop of congressmen and house reps. Boy I wish we could clean house (pun intended) and start over.
Finn McCool (Class Warfare = Stopping Rich People from TAKING MORE of OUR MONEY)
February 14th, 2012
8:49 am
Guvmint, keep yer hands off my medicare!
Paul
February 14th, 2012
8:49 am
Given all the “Obama Blinked” headlines and comments we saw from the liberal media over the contraceptive issue, is anyone noticing how the liberal media is ganging up on Republicans by trumpeting “Republican House Blinks” on this issue?
You’re not?
And the “blinking’ phrase was prevalent on talk radio and Fox tv? But they’re objective, not conservative?
Well…. golly!
barking frog
February 14th, 2012
8:49 am
The Federal Reserve can buy 100 trillion dollars of
Treasury bonds that mature in 99 years and the
Treasury can retire them at 1 trillion dollars per year.
Kinda like a consolidation loan to pay off the credit
cards..we have a cash flow problem not a debt to
asset problem..
Keep Up the Good Fight!
February 14th, 2012
8:51 am
Well stated Jay. It would be nice if our representatives would start making the tough decisions that balance getting the economy back on track while at the same time addressing a growing deficit that has not been addressed for appropriately for years.
Finn McCool (Class Warfare = Stopping Rich People from TAKING MORE of OUR MONEY)
February 14th, 2012
8:51 am
If your party has all the answers, why not vote on Barry’s plan?
let’s see if we can explain this to Johnny Reb. Unlike Republicans, Democrats actually use their noggins for more than support for hats. If you don’t like something, you don’t just blindly go along with it cause “everyone else is doing it and I will be ostracized”
I know it’s difficult to think outside that herd mentality but you should try it sometime.
md
February 14th, 2012
8:51 am
As Greece burns………..wisdom lies to our East (or West, depending which way one wants to go).
Willydoit?
February 14th, 2012
8:51 am
They will never balance the budget! NEVER! Who cares…just print more money.
stands for decibels
February 14th, 2012
8:52 am
I’ll leave ya all with this Deep Thought:
Shouldn’t all of those guys who’ve tossed “spending like a drunken sailor” similes about to and fro, hither and yon, be forbidden from griping about that one “Corpseman” slipup?
later, gators.
TaxPayer
February 14th, 2012
8:52 am
Do not the Republicans still have their house rule in effect that does not require offsets for tax cuts?
Jm
February 14th, 2012
8:53 am
Demoncrats wouldn’t cut spending
So we are where we are
Democrats are killing America
Paul
February 14th, 2012
8:54 am
Mick 8:47
But it’s gonna go on a lot longer than my last chess match in the previous thread -
Jm
February 14th, 2012
8:56 am
Taxpayer
Democrats decided to hold republicans above a spike
They had to choose between tax cuts for some offset by tax increases for others (class warfare served up by democrats) or let the bill pass without spending cuts
They elected to avoid political suicide
Hard to blame them
Democrats wouldn’t compromise so America loses
TaxPayer
February 14th, 2012
8:56 am
Do not the Bush temporary tax cuts end this year?
md
February 14th, 2012
8:56 am
“I know it’s difficult to think outside that herd mentality but you should try it sometime.”
Yes folks should……and realize that neither “side” is serious. If one had a clue, they would understand that cutting payroll tax is counterproductive to fixing SS and Medicare and that only changing the Bush tax cuts on a percentage of folks will still not solve the problem………
Politics is the order of the day and folks here are right on cue.
F. Sinkwich
February 14th, 2012
8:56 am
Another day, another libroolery outrage:
“A preschooler at West Hoke Elementary School ate three chicken nuggets for lunch Jan. 30 because a state employee told her the lunch her mother packed was not nutritious. The girl’s turkey and cheese sandwich, banana, potato chips, and apple juice did not meet U.S. Department of Agriculture guidelines, according to the interpretation of the agent who was inspecting all lunch boxes in her More at Four classroom that day.”
O’bozo’s lunchroom Gestapo coming to your home soon…
bob
February 14th, 2012
8:57 am
The said part is that the same people wanting that extra 2% in their check will be the same people whining about being old and poor. SS is tanking according to the SS statement gov puts out and dems want to de-fund it. I like the idea of bringing this PONZI scam down but never thought dems would be the ones doing it. If a 2% cut is good wouldn’t a 4% cut be better ?
Paul
February 14th, 2012
8:58 am
F. Sinkwich
But did they let her keep her glass of ilk?
TaxPayer
February 14th, 2012
8:58 am
Jm,
I do not believe you answered the question that I presented at 8:52. Again, do the Republicans still have their house rule in effect that does not require any offset for tax cuts.
md
February 14th, 2012
9:00 am
“Do not the Bush temporary tax cuts end this year?”
They should….and then we’ll see which group is really playing games…….we all created the mess, we should all share in fixing the mess.
Guy Incognito
February 14th, 2012
9:00 am
I keep having the image from Animal House where the marching band is led into a dead-end alley, and can’t find their way out
jconservative
February 14th, 2012
9:00 am
“At some point, we ARE going to have to deal with our budget problems.”
Nice thought Mr Goodman. But a bunch of us were saying this 30 years ago. And in that 30 year period debt has gone from $950 Billion to $16 trillion.
We have one side boxed in by a “no tax ” ideology and the other side boxed in by a “no cuts” ideology.
We actually made progress under Clinton and a Republican congress and actually balanced spending and revenue. But George W came along, created the first new entitlement in 38 years, the Republican congress went along with him, and we are where we are with deficits as far into the future as we can see.
“At some point, we ARE going to have to deal with our budget problems.”
Apparently we have not yet reached that point.
Jm
February 14th, 2012
9:01 am
Paul
If you asked more intelligent questions, people might answer them
JohnnyReb
February 14th, 2012
9:02 am
Finn – your condescending post at 8:51 shows your lack of knowledge on the situation.
We have a POTUS who has submitted a reelection document to Congress disguised as a budget.
He has a chief of staff that does not know how many votes in the Senate it takes to pass a budget, but clearly knows the objective is to bash Republicans so Barry can get reelected.
The whole situation is so ridiculous that Harry Ried won’t bring Obama’s budget to a vote.
The Obama speech writers already have several versions that blames it on Republicans.
Willydoit?
February 14th, 2012
9:02 am
My daughter’s high school had to remove the vending machines from the lunchroom so that the kids may eat healthier.
The administrators moved them alright…into the hall way!!
Hey! They just said they had to move’em…they didn’t say where to!!
MM
February 14th, 2012
9:02 am
Still looking for those conservative bona fides I see. The Repubs have so frightened us that any new spending is a cause for alarm. If you’re looking for bucks try a rediculously high defense budget and skyhigh health costs causing Medicare to soar. You’re just giving in to the silliness with this Chicken Little bit. Until we do something about the Big Elephants in the room we’ll always be afraid of our shadow.
Finn McCool (Class Warfare = Stopping Rich People from TAKING MORE of OUR MONEY)
February 14th, 2012
9:03 am
their concern for protecting wealthier taxpayers takes precedence over addressing the national debt.
Such misguided sheeple. Let’s watch some Fox News. Where’s my valium?
Jm
February 14th, 2012
9:05 am
Taxpayer
8:58 you want to crucify them for being ideologically flexible
But criticize them for being intransigent
I won’t play that game
md
February 14th, 2012
9:05 am
“At some point, we ARE going to have to deal with our budget problems.”
And it will more than likely be quite painful……..again, see greece, or any other country that spent what they didn’t have.
Our budgets should be based off current revenue…..not “what we wish we had” revenue……..that strategy has given us the 16 trillion……..
Peadawg
February 14th, 2012
9:06 am
Finn McCool
February 14th, 2012
8:51 am
That’s the est you could come up with?
Peadawg
February 14th, 2012
9:06 am
best
Butch Cassidy
February 14th, 2012
9:07 am
bob – “The said part is that the same people wanting that extra 2% in their check will be the same people whining about being old and poor.”
If those people were counting on SS as their primary source of income, then they have much larger problems.
Finn McCool (Class Warfare = Stopping Rich People from TAKING MORE of OUR MONEY)
February 14th, 2012
9:07 am
O’bozo’s lunchroom Gestapo coming to your home soon…
We are coming for your guns too! Take a valium…
Paul
February 14th, 2012
9:07 am
Jm
“If you asked more intelligent questions, people might answer them”
So you criticize Pres Obama’s budget as not addressing the important issues and I ask you ‘what budget could he have offered that Republicans would look at and say “Hey! Great budget! It addresses our problems! We’ll pass it!”
And you say that’s not an intelligent question?
Because what you don’t want to say is “it doesn’t matter what Pres Obama proposes. Republicans will reject it’?
barking frog
February 14th, 2012
9:08 am
F. Sinkwich, 8:56, Did they give her some catsup so she
could have some Reagan veggies with her chicken?
Jm
February 14th, 2012
9:09 am
We’ll apparently b dealing with deficit when we reach Greek debt levels
Bad news folks