December 03, 2010
— DrewM Pretty much just a technicality that doesn't really matter much.
Eleven of the 18 members of President Obama's fiscal commission voted Friday to embrace a bipartisan commission's controversial plan to slash deficits by nearly $4 trillion over the next decade -- too few votes to command quick action in Congress, but far more than even the panel's most ardent supporters had predicted just a few weeks ago....The chairman of the Senate Budget Committee, Kent Conrad (D-N.D.), also voted yes, and Durbin predicted that Conrad would use the commission's report as a basis for constructing the party's next fiscal blueprint early in 2011.
Incoming House Budget Committee Chairman Paul Ryan (R-Wisc.) has pledged to do the same, even though he and the two other House Republicans on the panel voted against the package. Their opposition was based primarily on the commission's implicit embrace of Obama's health-care overhaul.
Via Philip Klein of The American Spectator, here's how the votes broke down.
I get why Republicans voted yes on this, it was kind of free vote that had no real meaning but the alternative, voting no after spending a year campaigning on cutting spending and reducing the deficit, would have been problematic.
Like any plan of this nature (crafted by 'wise-men' from both parties invested in big government) there's far too much emphasis on taxes (one trillion in new revenue by 2020) and not nearly enough on non-defense spending cuts and entitlement reform.
There are some basic problems with the revenue portion of the plan.
There's really no way to guarantee that any money raised (assuming it materializes which is not a given) will be spent on reducing the debt and not new spending.
More problematic to me is the number...one trillion dollars. That's not even enough to cover the eventual costs of the DemocraticObama so-called 'stimulus' which will clock in at $3.27 trillion.
Personally, any plan that doesn't start with cutting discretionary spending back to pre-Obama levels and then cut from there is a non-starter.
Of course, all of that is just a drop in the bucket compared to what we are going to have to do with entitlements since that's where the real money and problem is.
So no, the debt commission didn't get enough votes to force a vote in the Senate but nothing is stopping Harry Reid from bringing it up this afternoon for a vote (it's good to be the Majority Leader) but it was never designed to be voted on. Democrats (and yes Republicans) have run up astronomical spending numbers, they aren't about to let a handful of 'commissioners' undo it all with one vote.
Now that this charade designed to give cover to Democrats for their two year long spending binge in the run up to the midterms is behind us, we can get on to the serious business of building a plan that can actually get some votes in Congress. I have my doubts that's even possible but we'll see.
Posted by: DrewM at
08:45 AM
| Comments (27)
Post contains 508 words, total size 3 kb.
This was about as unexpected as the new unemployment numbers.
Posted by: Burn the Witch at December 03, 2010 08:52 AM (fLHQe)
Posted by: Blue Hen at December 03, 2010 08:53 AM (R2fpr)
Posted by: Nighthawk at December 03, 2010 08:56 AM (02uN6)
speaking more about economics...
In this Alternate Bizarro Universe we live in, the administration believes in Bottom-Up Economics. That is, poor people are the job creators; the driving force in the economy.
So we shall tax more, give that money to the poor, and watch as the economy expands!
Posted by: Soothsayer for RNC Chair at December 03, 2010 08:57 AM (uFokq)
Immediately cut spending in every department to 2007 levels.
Then start eliminating departments. I expected nothing from this panel and that is exactly what we got.
But Fox just couldn't understand why Republicans didn't agree with the panel.
And no, tax increases NEVER in the history of this country have ever gone to pay off the deficit. In fact, after every tax increase we have had a deficit increase. Mainly for two reasons. the Dems kill the economy and then they increase social spending.
Posted by: Vic at December 03, 2010 08:59 AM (e4sSD)
Posted by: Nighthawk at December 03, 2010 09:00 AM (02uN6)
btw, there's a new poll out in MA that shows Scott Brown ahead of all potential Democrat opponents, e.g., Vicki Kennedy, in 2012.
Posted by: Soothsayer for RNC Chair at December 03, 2010 09:01 AM (uFokq)
Okay, let's nip this in the bud, right now: Additional Taxes do not lead to additional revenue. You might get a one year bump while everyone figures out how to shelter more of their money, but that's all you'll get.
We know that for the last umpteen years (I know it's at least 20, but I really think its more than that) Tax Revenue has been approximately 19% of GDP. That's really all you're going to get.
So, no, the plan didn't have "one trillion in new revenue..." it CLAIMED to have that, but any objective analysis would have shown that to be completely false.
Posted by: AllenG (Dedicated Tenther) at December 03, 2010 09:02 AM (8y9MW)
That's simply not a valid statement. Your FIL needs to speak with the milk Czar before he decides for himself how to run his business. For fuck's sake, he didn't even go to Exeter, much less Harvard!
Posted by: CharlieBrown'sDildo ( NJConservative) at December 03, 2010 09:04 AM (LH6ir)
Deaddy Kennedy's Widow: 40%
that's not reassuring, to me
Posted by: Soothsayer for RNC Chair
How's he doing against the dead Kennedy (the corpse, not the band)?
P.S. the latest corpse (provided patches doesn't get a new drivers license ad a prescription refill in the next month.)
Posted by: Blue Hen at December 03, 2010 09:06 AM (R2fpr)
Posted by: DMG at December 03, 2010 09:08 AM (Du8+/)
The Republican Senators voted for it (*ring* *ring* History calling) while the Republican Representatives voted against it. We've seen this party division before, and we're going to see more of it over the next two years.
Posted by: Laurie David's Cervix at December 03, 2010 09:09 AM (yea0z)
The long-term average is closer to 19% (which is also the basis for Paul Ryan's roadmap).
On the spending side, it didn't address Obamacare, as noted, and also didn't really cut spending. It cut the rate of increase in spending, which is the classic old Washington dodge.
We need 2 things: realistic revenue projections and real spending cuts. This was a non-starter and not a serious proposal.
Posted by: Andy at December 03, 2010 09:09 AM (5Rurq)
Posted by: Nighthawk at December 03, 2010 09:10 AM (02uN6)
Posted by: CoolCzech at December 03, 2010 09:12 AM (tJjm/)
Balanced Budget.
Set "Projected Revenue" (By Constitutional Amendment, if I had my way) = ((GDP * .95) * .19).
Once receipts are in, any additional dollars go directly to retiring the debt. If the debt ever gets retired, additional dollars are returned to the states- proportioned by a States % of the GDP.
Posted by: AllenG (Dedicated Tenther) at December 03, 2010 09:14 AM (8y9MW)
Surplus Budget.
Set total spending (By Constitutional Amendment, if I had my way) = ((actual revenue previous year * .90) 10% goes to debt until paid off.
Balanced budgets will not pay off debt.
Posted by: Guy Fawkes at December 03, 2010 09:18 AM (b75eT)
Mine does much the same thing, when you look at it. I should have said "Previous Year's GDP" in my formula. That presumes a 5% drop in GDP (when we'll likely actually have gains) and then only grants 19% (what actual revenue would be if we had such a drop) for budgeting. I'm willing to bet the numbers come out pretty close. Especially once its realized what sane spending policies will do to our GDP.
Posted by: AllenG (Dedicated Tenther) at December 03, 2010 09:21 AM (8y9MW)
Washington Post
Friday, December 3, 2010
The White House and congressional Republicans have begun working behind the scenes toward a broad deal that would prevent taxes from going up for virtually every U.S. family and authorize billions of dollars in fresh spending to bolster the economy.
Republicans are demanding that Democrats extend Bush-era tax cuts at all income levels at least temporarily, not just those that primarily benefit the middle class. They are also pressing Democrats to approve a measure to keep the government funded through September, a move aimed at avoiding a fight with the White House over spending that could provoke a government shutdown.
In return, Obama is seeking Republican support for as much as $150 billion in new spending on the economy, including an additional 13 months of emergency jobless benefits and another year of his signature "Making Work Pay" tax cut for working families.
If successful, the back-channel negotiations would add hundreds of billions of dollars to future deficits, even as a bipartisan commission appointed by Obama is trying to build support for a plan to balance the budget. In a briefing for reporters, a senior administration official noted the contradiction but said the provisions being considered would "enhance growth" at a critical moment.
Also on the table: an immediate vote to raise the legal limit on government borrowing - months before an increase is needed. The move would defuse a potentially explosive debate in the spring, when a new tide of conservative lawmakers is threatening to block an increase in the debt limit, risking a government default.
The negotiations, which were conducted primarily with the office of Senate Minority Leader Mitch McConnell (R-Ky.)
That's our Mitch walking across the aisle, that is....
Posted by: Laurie David's Cervix at December 03, 2010 10:30 AM (yea0z)
Posted by: Laurie David's Cervix at December 03, 2010 02:30 PM (yea0z)
I heard that deal is dead.
Posted by: Vic at December 03, 2010 10:45 AM (e4sSD)
I think the American people had a little something to do with it too.
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Posted by: LindaF at December 03, 2010 08:47 AM (xzYrS)