Pig-headed Republicans

by YankeeJim | June 28, 2011 at 10:49 am
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Mitch McConnell

Mitch McConnell

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Wallowing with the wealthy


To get out of the debt created by George W. Bush, we have to 1) reduce spending and 2) increase revenues. The revenue increase should come from rolling back the Bush tax credit to the wealthy that has failed to deliver expected benefits and have, instead, exacerbated the debt problem.

Republicans balk at even a small effort to close loopholes that give their wealthy constituents unfair benefits. It is all too transparent now. Republicans want to stiff America and it isn’t going to happen.


A bit more information has trickled out over the last few days detailing the exact state of the budget negotiations when they collapsed. Both sides, as they often said, were shooting for about $2.4 trillion in deficit reduction over 10 years. They'd already agreed on around $1 trillion in spending cuts and were making good progress on the rest of it. But Democrats insisted that $400 billion -- so, 17 percent -- of the package be tax increases. And that's when Republicans walked.

Specifically, the Obama administration was looking at a rule that lets businesses value their inventory at less than they bought it for in order to lower their tax burden, a loophole that lets hedge-fund managers count their income as capital gains and pay a 15 percent marginal tax rate, the tax treatment of private jets, oil and gas subsidies, and a limit on itemized deductions for the wealthy.

It's almost not worth going into the details on those particular tax changes because the Republican position has held that the details don't matter: well-designed tax increases won't be looked at any more favorably than poorly designed tax increases. The point, Republicans say, is that there can't be any tax increases, full stop.

For now, Democrats are holding their ground. "Do we perpetuate a system that allows for subsidies in revenues for oil and gas, for example, or owners of corporate private jets, and then call for cuts in things like food safety or weather services?" Press Secretary Jay Carney asked. But at some point, this will cease to be a clean choice between two budget plans and begin to be a question over whether we can raise the debt ceiling. And that, Republicans are betting, is when the Democrats will stop holding their ground.”

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Jordan Yerman
Jordan Yerman
flagged this story as Needs Improvement

at 17:16 on June 28th, 2011

The blockquotes are pointing back at the draft version of the story... they should point at the URLs form which the text was quoted.

Also, the second blockquote is way too long... I suggest a paragraph, tops. Once it's fixed, just let me know.

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liamssoft
First Flagged at 2:10 PM, Jun 28, 2011 by liamssoft
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