Tag: revenue

Shocking News about Gang of Six

A bipartisan effort to rein in the national debt stalled Tuesday, as members of the Senate’s so-called Gang of Six signaled that an agreement is unlikely to come this week in time for the start of White House-led budget talks.

Also unlikely to come in the weeks following the start of White House-led talks. And in the months and years after that. And, you know, forever. Just like the Baucus-led Gang of Whateveritwas on healthcare reform, these talks were never going anywhere. Ever. They were solely an attempt to get >50% of the Ryan plan and then stamp it with the Broder-approved Seal of Bipartisanship. And then demand another 20-30% on top of that “bipartisan” plan when the mess hit the floor. Period. That is all that was ever going on in there. All that is going on in there.

Though never mentioned in the mainstream media, there is one party, the GOP, that has categorically ruled out any revenue increase from any source and intends to “balance” the budget by eliminating Medicare, fundamentally ending Medicaid, and then passing those “savings” on to the very rich in the form of more tax cuts. And then, of course, raise the debt ceiling to pay for it by borrowing ever-more. This is their plan. Magically, they also plan to reduce all government spending to levels below what just the military consumes today. And this all seems likely to the Serious People. Sensible and courageous, even.

Notable that Tom Coburn, one of the vanishingly few people with ® after their name that actually accepts revenue probably has to increase, has suddenly left town. Shocking. I’m sure it’s truly pressing business back home.

Can we finally be done with time-wasting and air-sucking idiocies such as the Gang of Six and, for that matter, all these other “Gangs of” now and forever? I know Serious People love their Gangs, but there simply is no middle ground, or anything approaching “middle ground” between Ryan and the status quo. There just isn’t. And though Serious People will never, ever accept it, sometimes doing nothing is indisputably the best way forward when faced with intransigent and unthinking opposition such as that presented by the modern GOP.
In this case, doing nothing fixes at least half of our budget problem. But let’s not talk about that. Everyone knows that Medicare has to go away. Anything less would destroy America.

All I have to say is: All hail gridlock!

Shocking News about Gang of Six

[Tea Party activists and junior lawmakers] literally think you can just balance it, you know, [by cutting] waste, fraud and abuse, foreign aid, and NPR. And it doesn’t work like that.

Paul Ryan, letting a little truth slip out. Wonder how those people got crazy ideas like that into their heads?
Almost equally unbelievable is that Ryan also said: “Do I believe you can get slightly higher revenues without harming jobs, and get better economic growth? Yes, I do believe that.” Not the R-word! And from a Republican. Who knew?
Source: Washington Post

Unified Field Theory

First principles:

  1. The recently House-passed continuing resolution only makes a government shutdown more likely by both caving to perceived GOP demands to “cut” while also exhausting the supply of low hanging fruit that Obama has already come out in favor of cutting.
  2. The GOP has the media high-ground, as always, because serious people know that cuts must be necessary, and since the GOP is at dollar value X, and the Democrats are, for all intents and purposes, at dollar value $0 (spending freeze as opposed to new cuts), the serious person answer must be $X/2. That’s the “grand bargain” that Democrats wisely point out will still submarine the economy and the GOP flatly refuses to even discuss. See: shutdown and default in 2011.
  3. Serious People furthermore agitate for deep cuts to Social Security, despite its dedicated funding source and minimal deficit impact in the near future, because, well, because that’s what serious people do. Acceding to the demands for cuts to Social Secuirty is 2012 suicide for the Democrats. It just is.

With all that in mind, what the Democrats need is a concentrated, coordinated effort that steals this idiotic media high ground surrounding the (perceived) absolute necessity of “cuts and a lot of them.” Karl Rove taught us nothing if not the fact that making your enemies’ strengths into their weaknesses is a potent political tool. Think Swiftboating. That The Democrat assiduously avoids the use of this tool is why they fail.

Therefore: the GOP is talking at least $100B in cuts, and immediately. Right or wrong, that’s going to have to be your number too. However, and critically, the GOP wants those cuts to come entirely from the non-military discretionary budget, somewhere around 14% of the whole government budget. This, then, is where and how you attack them. And you’re going to do it specifically and with dollar amounts.

You go down the list of GOP hobby horses: faith-based initiatives, the military, oil subsidies, agribusiness subsidies, general corporate welfare, abstinence-based education, all of it; but you don’t stop with spending, you also target revenue: capital gains taxes, estate taxes, social security taxes (as in: uncapped), and ultimately the tax code itself, which could use a few new brackets up top.

Secretary Gates can likely provide you with a long list of outdated or otherwise no-longer-needed military programs. Lots of them will seem ridiculous or hopelessly out of touch. Mock them and mock the GOP for continuing to support them.
Same goes for oil subsidies. These are the richest companies on Earth and the GOP wants to give them corporate welfare while asking for “shared sacrifice” from the poorest of the poor?

When you’ve run out of spending to cut from GOP programs, you go to work on revenue. That’s right, I said it. You need to too. First: revenue is revenue. Capital gains, management fees, bonuses, and everything else falls under regular pay. Next, you set about raising effective rates on corporations and the rich. The corporate side can be most effectively done by eliminating shelters and loopholes. Any country in which ExxonMobil pays $0 in taxes needs, needs corporate tax reform. Period. Still haven’t hit the number? New tax brackets. Still haven’t hit the number? Uncap Social Security. And so on.

You then pack the whole thing together and unveil it as the “alternative” plan and hoist the GOP upon it each and every day, all day. Because they are guaranteed to hate it. But will have to explain why they prefer to make these cuts on the backs of the poorest instead of the richest and furthermore call it “shared sacrifice.”

You’ve got less than two weeks to put this together. Recent history with the tax cut extension “fight” suggests you haven’t even considered something along these lines yet. But it’s how to win. That’s why it looks so strange to you. Yes, it’s simple minded. But simple minded is what works. You are the last few hundred people in America to come to this realization.

I’m not saying this bill would be what was passed, or that it would even reach the floor in a serious way…but it would drive the conversation in a way that benefits you, The Democrat, and not so coincidentally us the American people.
Currently you’re battling over the 14% that contains the most painful cuts possible. You shouldn’t be. You furthermore don’t even need to be. Change the conversation to terms that have the potential to benefit you. Right now revenue doesn’t even come up. It needs to. It needs to be the first question off the lips of the serious people. Until it is, you will fail.

If the deficit was actually something anybody cared about, they’d be interested in raising revenue. You don’t have to raise tax rates to raise revenue, you just have to increase the number of goddamn jobs.

Duncan Black aka Eschaton, on jobs, revenue, and the deficit.
As Gwen Ifill was being all serious person last night talking to and asking the tough questions of Jack Lew on why he won’t just admit that Social Security must be eliminated, preferably today if we as a nation are to survive, I found myself jumping up and down screaming “revenue, revenue, revenue.” It was a special Valentine’s Day moment for the wife. But: revenue. It’s a word that never, ever comes up in the MSM. Instead, they have laserlike focus on the elimination of Social Security, the one entitlement that is perfectly fine for 40+ years, and then only moderately not fine after that. But they aren’t likely to depend on it, so it has to go. Medicare? Well, not so much. They see a real benefit for themselves in that one.
This is why Our Republic is coming apart at the seams.