Deficit solution will have to wait for 2012 elections
So, the congressional “super committee” failed to agree to a deal that would cut deficits. Maybe the defense-heavy spending cuts will now take effect, or maybe Congress will find a way to finagle its way out of them.
A deal that reformed entitlements and the tax code would have been great. But it was never terribly likely.
As much as people like to wring their hands about partisanship and ideological inflexibility, the fact is that there is a deep divide in this country about how to fix the nation’s finances. Oh, sure, you can find polls whose respondents largely say, “cut spending and raise taxes!” But dig much deeper, and the specifics — usually, cut the spending I don’t like (on programs that amount to peanuts), and raise other people’s taxes — don’t lend themselves to a grand bargain.
There is an election in 11.5 months, and no issue before the electorate surpasses the urgent importance of this one. There won’t be a breakthrough on it before then. Whether we get one afterward, and how soon, will depend a) on the results, and b) how soon the inevitable arrives.
Because the day of reckoning is inevitable: Anything that can’t go on forever, as the economist Herb Stein is said to have pointed out, won’t. And this definitely can’t.
– By Kyle Wingfield
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178 comments Add your comment
HDB
November 22nd, 2011
11:04 am
UGA 1999
November 22nd, 2011
10:52 am
Question: Do what previous Administrations have done NOT AFFECT the current Administration?? If you’re HONEST…..you know the answer…….
What Bush did affects what Obama has to DO!! As I’ve asked COUNTLESS times: Where was this level of concern on the budget when the nation was BUSHwhacked????
HDB
November 22nd, 2011
11:08 am
UGA 1999
November 22nd, 2011
11:03 am
“HDB….There ya go….blame black stereotypes on whites..hahah nice job!”
Not a statement of BLAME; this is what I’ve been told BY Japanese that I have encountered!! What that has done is to give me the drive to be one who can DISPEL that myth!!! Japanese were told once that black people grow tails at night!!! Who would have that type of power to disseminate that type of myth???
UGA 1999
November 22nd, 2011
11:10 am
HDB….of course it affects the current administration. However Obama has done nothing but thrown fuel to the fire, instead of water. Are you really going to debate Obama’s spending to Bush? Really?
UGA 1999
November 22nd, 2011
11:11 am
HDB….yes they were told that and we were told that asian women had sideways private parts! However both myths were proven wrong in BOTH societies.
I didnt see any tails in that video by the way.
gm
November 22nd, 2011
11:15 am
UGA 1999
Oh really every bill he passed was for the middle class, when he bailed out auto indust, stock workers, parts workers, tire people., these were middle class workers.
Umemployment compensation to people that lost their jobs at no fault of their own, these were middle class workers, you people are sick, you rather support rich fat cats like Newt who took millions of dollars from government has no morals and family value.
Rush Limbaugh who make millions of low call whites, bigots encourage the booing of miltary families, these people are not Americans, Obama can kill the terriost on the outside of our country but not our inside terroist.
MarkV
November 22nd, 2011
11:16 am
UGA 1999 @11:03 am
Do you really think about what you are writing? First, you claimed, “No president has done more to harm the middle class than Obama.” That in itself was a dumb claim. You have data for 43 presidents to document that? Then, when I reminded you of Bush, you forgot that you invited a comparison with other presidents, and you yelled “BUSH IS NOT PRESIDENT ANYMORE!“ In essence, you have admitted that what you wrote was without considering Bush. And when I pointed out that, you answer was an inane “because it is true.” Why don’t you learn something first before try arguing?
UGA 1999
November 22nd, 2011
11:19 am
Gm….really? Lets look at those. I agree with the auto bail out. Most of those loans have been paid back early plus interest. But let me ask you this….who ends up footing the bill for most of the projects? THE MIDDLE CLASS! He is burying the middle class is so much debt that it is going to take generations to pay back. Also by not reaching a debt deal today, watch what happens to the middle class when our credit rating is downgraded again and interest rates fly through the roof. What do you think is going to happen to the middle class if interest rates on mortgages hit 20%?
Unemployment compensation….really, who do you think pays for that? THE MIDDLE CLASS.
I find your caddie racism hilarious keep up the good work.
Bart Abel
November 22nd, 2011
11:20 am
But dig much deeper, and the specifics — usually, cut the spending I don’t like (on programs that amount to peanuts), and raise other people’s taxes — don’t lend themselves to a grand bargain.
Not true. In fact, following the lead of people like Warren Buffet and Bill Gates, a group of millionaires and billionaires testified before Congress and walked the halls of Congress last week asking Congress to raise their taxes. In addition, polls have indicated that most people making over $200,000 per year, generally support going back to the Clinton tax rates for those at their income level. Recall that over 22 million jobs were created while those tax rates were in place.
I’ll add that I’d be happy for Congress to raise my taxes. My household income is $120,000 per year (my income plus wife’s income), and I’m more than willing to let the Bush tax cuts expire for me and allow my rates go back to the level they were at during the Clinton years. I’d also like for Congress to raise my capital gains, dividend, and inheritance taxes (yes, I have investments, and my well-off parents are in their 70s) so that these sources of income are taxed at the same rates at my income from work.
Recently a bunch of millionaires and billionaires walked the halls of Congress asking Congress to raise their taxes. Many polls have indicated that people making over $200,000 per year, generally support going back to the Clinton tax rates for those at their income level.
To be clear, I don’t support raising taxes on households living paycheck to paycheck with little or no ability to save. Doing so would take money out of the economy and serve as an anti-stimulus. But going back to the Clinton tax rates for everybody else would put a huge dent in deficits, and allow us to invest invest in education and infrastructure, two big ticket items that would put people back to work. Putting people back to work has the added bonus of being the best way to grow our way out of our debt, as we’ve done twice before.
Bart Abel
November 22nd, 2011
11:23 am
No president has done more to harm the middle class than Obama…
George H.W. Bush and George W. Bush.
UGA 1999
November 22nd, 2011
11:24 am
Bart….the fed will take your check as soon as you are willing to send it.
UGA 1999
November 22nd, 2011
11:25 am
Bart….PROVE IT!
gm
November 22nd, 2011
11:25 am
UGA 1999
Come on no racism here, I know you want to back to the good old bush era when corportations can just do want they want, and we can have this melt down again.
I guess its Obama fault that no debt deal was not meet? Ohio proved that Americans are waking up and not going to let corporations and the idiot of the tea party who are funded by the coke brothers destroy this country.
UGA 1999
November 22nd, 2011
11:27 am
gm….Really? “Rush Limbaugh who make millions of low call whites, bigots encourage the booing of miltary families”….not racist eh?
I think you should look at Wisconsin and the job the Scott Walker is doing. Balancing budgets, not raising taxes and eliminating unions.
It is Koch tard!
UGA 1999
November 22nd, 2011
11:29 am
Gm…did you watch this video?
http://www.liveleak.com/view?i=bfd_1321923397
carlosgvv
November 22nd, 2011
11:34 am
UGA 1999 – 10:36
I would say to contact Jesse Jackson and Al Sharpton. But, since the only racists they care to rail against are White Americans, don’t bother.
UGA 1999
November 22nd, 2011
11:38 am
Ha you bring up Jesse Jackson and Al Sharpton! HAHAH
joe
November 22nd, 2011
11:39 am
I knowUdin’t grow up in America wid out bein’ racist. It’s not posse-ble.
Television makes racists out of all of us. We’re brainwashed
UGA 1999
November 22nd, 2011
11:40 am
Joe = Carlos.
UGA 1999
November 22nd, 2011
11:41 am
Carlos…it is not just an American thing. In Europe racism is much more prevelant. Also in the middle east.
joe
November 22nd, 2011
11:43 am
And notice the total 180 Kyle Wingnut has made since I educated him about “cut spending” and how meaningless that phrase is. I mean, I’m always a year ahead of everyone else in understanding, wit and wisdom.
I’m so cool. I luv me. (insert emoticon of a guy kissing his arms)
Evelyn
November 22nd, 2011
11:44 am
Yes, Barry
We all know there are more people in the middle class, than are in the “upper class” . You do realize that Barry? Take your meds today? Clearly per capita, the wealthy (the top 1%) benefitted the most in dollars, from the Bush Tax Cuts. Google it.
The Republican plan to eliminate mortgage interest deduction will hurt the middle class disproportionately. The sweetener, dropping the tax rates a few pts will not come close to covering the loss of that deduction. Governor Deal had his last tax reform proposal blow up in his face over this reality, last legislative session. Let’s see how well his plan goes over this year. I would expect more Occupier rioting, if Republicans try to fund the next huge tax cut for the wealthy on the backs of the middle class and the poor. I do believe Americans are willing to pay more taxes, if it is done equably. Michelle Bachman’s plan to have every American pay income taxes of at least $10 a year, is the best plan out there. We all benefit from the government services and should pay for it. The wealthy have used their undue influence, unfairly. People have had enough of it.
Bart Abel
November 22nd, 2011
11:44 am
…the fed will take your check as soon as you are willing to send it.
I take it back. Kyle’s statement about people not wanting to sacrifice applies to UGA 1999.
He wants to use other people’s money to pay for misbegotten wars, a bloated military industrial complex, and welfare for corporations. Now UGA and associates are out there supporting a group of guys who are advocating what would likely be an expensive full-scale war with Iran, but they don’t want to cough of the up funds to pay for it.
The level of chutzpah from these welfare queens is beyond belief.
UGA 1999
November 22nd, 2011
11:48 am
It is hilarious that you guys blame the wealthy for all that is wrong in America. Then you talk on your iphone, drink your starbucks and wear your Johnson Murphy shoes. It is so hypocritical. You also want to raise their taxes then you bit*h when they send jobs overseas……….Nice work.
MarkV
November 22nd, 2011
11:50 am
One of the most stupid responses people make – and that includes some politicians – is when somebody prosperous suggests that the wealthy people like him/her should pay more in taxes, these people suggest that those individual wealthy people should give the Treasury what they think they should pay in taxes. It is such a childish, idiotic response. Those people apparently are unable to understand that the wealthy people speak as representatives of the group. Their individual contributions would be insignificant, but if their suggestion were applied to the whole group, it would make a real difference.
UGA 1999
November 22nd, 2011
11:50 am
Bart…who said I was not willing to sacrifice…But why should I sacrifice if Obama is not willing to spend OUR money more wisely.
Bart Abel
November 22nd, 2011
11:52 am
The wealthy didn’t make those iphones, mix and pour those coffees, and stitch and glue to those Johnson Murphy shoes together all by themselves. They had a little help from, actually, the 99 percent.
UGA 1999
November 22nd, 2011
11:55 am
Bart Abel….Hmmmm “the wealthy didnt make those iphones”? Really…..You do know who Bill Gates is right?
And you do know that Bill Gates and the Apple board could vote at anytime to move their operation overseas if business gets too expensive here in the states. Nice work.
SHouldnt we be providing incentives for companies to bring their jobs back here to America?
Bart Abel
November 22nd, 2011
11:59 am
I know who Bill Gates is. He has nothing to do with the iPhone, but since you mentioned him, he has been lobbying Congress to raise taxes on the rich.
By the way, re-read my comment. I said they didn’t do these things all by themselves.
getalife
November 22nd, 2011
11:59 am
Looks like the gop do not want power because they can’t spend.
They just handed our President another term.
@@
November 22nd, 2011
11:59 am
Is this site on the fritz?
UGA 1999
November 22nd, 2011
12:00 pm
Bart….you are right, I meant microsoft.
UGA 1999
November 22nd, 2011
12:00 pm
getalife….wake up, come on wake up, open your eyes. There see….you were dreaming.
getalife
November 22nd, 2011
12:01 pm
ug,
You are never right about anything.
Typical con.
UGA 1999
November 22nd, 2011
12:01 pm
Does noone want to address the video I posted about Obama LYING about the debt deal? Come on please.
UGA 1999
November 22nd, 2011
12:02 pm
Getalife….come on, maybe you need a cup of coffee. Wow this one is hard to wake up.
Dave
November 22nd, 2011
12:02 pm
I just don’t get how people are stupid enough to believe that the ’sequester’ is an actual budget cut. It’s not. All it does is slightly reduce the expected increase in spending over the next 10 years.
Even with the sequester changes in place, we’ll still have spending on the defense department higher 5 years from now than it is today.
The corrupt politician scumbags in Washington are acting like it’s the end of the world, and the main problem is that most American citizens are stupid enough to believe them.
UGA 1999
November 22nd, 2011
12:02 pm
here I will post it again for you thugs…..
http://www.liveleak.com/view?i=bfd_1321923397
getalife
November 22nd, 2011
12:04 pm
Let me spell it out for you slow cons.
Your party lied to you about cutting spending and jobs.
They will lose big this election.
Stay home this election cons.
Bart Abel
November 22nd, 2011
12:05 pm
I’ll bite, UGA. I watched the video, but I didn’t catch “the lie”. What was it?
gm
November 22nd, 2011
12:07 pm
UGA 1999
Is that why a pettion with over 100, 000 signature are trying to recall Walker? wont hear that on fox fake news because they are pimped by the coke brothers””
UGA 1999
November 22nd, 2011
12:08 pm
Getalife…haha kind of like how we lost in the last election….BTW…that was the largest shift in party affiliation in the history of the Congress. Great job!
UGA 1999
November 22nd, 2011
12:09 pm
BART>….please tell me you are kidding.
getalife
November 22nd, 2011
12:10 pm
You cons got punked ug.
Why not send your corrupt party a message that you don’t like being lied to and stay home like the left did in 10.
UGA 1999
November 22nd, 2011
12:11 pm
Getalife…Spoken like a true sore loser. Thanks.
mem
November 22nd, 2011
12:11 pm
Saying that Bush had no hand in the mess we are in is uninformed at best. He came in with a surplus that he quickly decided needed to be given back to taxpayers via tax cuts. Here comes 9/11 and people are told to go out and spend to revive the economy. We go into Afghanistan which is quickly followed by another tax cut to stimulate the economy and create jobs. We go into Iraq followed by another tax cut to stimulate the economy and create jobs. Sure, the jobs were created, overseas, but nobody cared because they were making money in the market.
Bottom line, the people who could help the country were too busy lining their own pockets so no wonder they are still looking out for #1. Most Republican voters have no idea what’s going on in Europe and how it affects us here because of the global economy, though if you only watch Fox, you’ll never hear about that because it’s too complicated for them to explain.
Bart Abel
November 22nd, 2011
12:13 pm
Educate me, UGA. What lie or lies did he supposedly tell in that video?
getalife
November 22nd, 2011
12:13 pm
ug,
cons have been sore losers since our President won.
The 11 elections showed the dems will win.
Try not to sore lose after this election loser.
UGA 1999
November 22nd, 2011
12:17 pm
Bart…he is saying that no matter what the debt commitee comes up with or does not come up with….HE has come up with a solution that will have the spending cuts we need to meet the deadline……LIE LIE LIE>
UGA 1999
November 22nd, 2011
12:20 pm
Getalife….HAHA your posts seriously make me laugh. 2010 Republicans won by a landslide. 2012 Republicans will win by a landslide for the Presidency and the Senate.
Bart Abel
November 22nd, 2011
12:30 pm
That video is 1 minute and 31 seconds long, I listened to it again, and I listed to it carefully. Nowhere in that video, did President Obama say or imply that “HE has come up with a solution that will have the spending cuts we need to meet the deadline.”
Incidentally, the agreement was for the supercommittee to try to agree to a way to cut the deficit by 1.2 trillion, not necessarily to cut spending by 1.2 trillion (unless the supercommittee fails, in which case $12. trillion in defense and non-defense spending would be triggered).