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Prune Juice Media | April 24, 2014

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Debt Ceiling “Compromise” Becomes Law

| On 02, Aug 2011

It’s official. The United States of America, at least for right now, is not going to careen into debt default despair. We made the midnight deadline!

The president signed the legislation to increase the nation’s debt ceiling today, thus ending the ugly spectacle that has become routine with most issues in Washington.

But, trust and believe that the deal that was struck is not a real “deal” at all. Democrats didn’t get the revenue raisers (i.e., tax increases) they wanted. They also had to cave in on a bit of social safety net reform (i.e., Medicare). Tea Party fringe supporters didn’t get the ultimate smackdown on spending they were seeking.

The only people that really “won” were the old guard Republicans – those seeking lower taxes for the rich and the same “IDGAF [take a wild guess what it means] attitude” toward the middle class. These are the same people whose ranks don’t represent anything near the socioeconomic diversity of America.

Politics aside, here is what the debt ceiling deal means in simple(r) terms:

  • $2.1 trillion increase in the debt ceiling limit through early 2013
  • U.S. Treasury gets an immediate $400 billion in borrowing authority
  • A committee will search for another $1.2 trillion to cut from the budget later this year
  • No new tax increases on the wealthiest Americans, nor any real revenue raisers to attack the debt problem
  • $2.1 trillion would be cut from borrowing over the next 10 years
  • $917 billion in agency cuts over the next decade
  • Programs for the poor – Medicaid, Social Security, food stamps, etc. – would be somewhat protected from deep cuts.

I still can’t get over Republicans wanting to “reign in spending,” but there is not a single tax increase on the wealthy. The accounting doesn’t make sense. You cannot “cut” your way to a balanced budget. Mama has got to bring some new coins into her house!! ::deep sigh::

Comments

  1. atkinsoniv

    It’s funny that you would have everyone pay taxes only for awhile. You are mistaken when you say that middle and lower class citizens pay a payroll tax. The payroll tax is paid by the employer. The income tax is what is paid by the employee and that is not paid by ~52% of the workers in this nation. What is the bigger travesty is the people who are on welfare receive income tax returns on their welfare checks. What that does is label them as people who have an income. The reality is that they don’t but they do receive a stipend of generosity from the government and every April they receive a bonus from the same government.

    You hit on a great point with the sales tax. Where you fell short is that you didn’t address the inflation tax. I was wrong when I quoted the numbers on the debt growth under this administration. It has actually gone from $9 trillion in January of 2009 to $14.3 trillion at present. That means that the national debt has been risen by 50% under this president. It took from 1789 to 2009 to get to $9 trillon but only 2.5 more years to raise it another 50%. I see that you pointed at Bush for more horrendous spending. That isn’t going to get you off of the hook with me. No, I don’t agree with any of the things you stated. TARP should have never happened. Under that the US treasury was robbed for tens of trillions of dollars (even though we were told we were paid back but there has never been an audit on the Federal Reserve or the US Treasury since). The Department of Homeland Security should be disbanded. We don’t need a department that does the same job as the Secret Service, National Security Department, FBI and CIA. If we are to have it we should disband the other four. Just more government wasteful spending. These wars that we’re still involved in are needless. We have killed Osama bin Laden and deposed Saddam Hussein. We didn’t really have a reason to go over there in the first place and now we have exhausted our reasons for being there now.

    The falacy of pointing back to Bush is that we cannot do anything about it now. He is gone and we are left to deal with this congress and president. Neither of these two are working for us. In fact, there are only 20 republicans who are on the side of the American people in the Senate. They voted no to this debt increase. There are more in the House simply by the merit that there are more people in the House. The number still stands at 20%. You can continue to make excuses for this president all you want but it will not change the FACT that this nation’s sufferings have increased because of EVERY decision that he has made. You can fall under the spell that he is casting when he says that he is working for you but if you would cut past his rhetoric and get to his actions you would see that he has continue to ignore and hurt you since the day he took office.

    I wish I could give you a summer reading list because I think it would make you a better thinker and American. At least it would give you an idea of where this nation came from. First I would have you read the Constitution and the Declaration of Indepence. Then I would have you read Common Sense – Payne and the commentaries and letters of people like Thomas Jefferson and Benjamin Franklin. After that I would steer you to The Jungle – Upton Sinclair, Atlas Shrugged – Ayn Rand and The Grapes of Wrath – John Steinbeck. My guess is that you haven’t read any of these and you will ridicule me for having recommended them to you and chastised you for not having read them. However, these are the ideas and moods which have steered this country toward individual liberty and freedom from the tryanny of the government.

    You asked where people will go when they decide to get away from the Federal government. That’s a good question and it is addressed in Atlas Shrugged. But to deflect the question I will point to a smaller scale of what I have actually stated. In the past decade 1.6 million people have left the state of New York because of the enormous tax burden on them. The wealthy are fleeing the city by droves daily. Over 65% of the people who live in New York city pay no taxes at all. That is fine in states like Nevada where the casinos pay all of the taxes, but it isn’t good when individuals pay all of the taxes as they do in the Empire State. Where have they gone? Probably places like Wyoming, Montana, or the Dakotas where the taxes are relatively low and they carry on their businesses from there.

    As for being able to shift profits offshore, I would change that also. Furthermore, if a corporation shifts the majority of its operations overseas I would charge them as a foreign entity doing business clandestinely and would tax them accordingly. Plus, I would hit them with import taxes. Something else we need to end are the subsidies to farming and energy. These are keeping the prices artificially high.

    One thing that I won’t do, though, is demonize corporations as you have done. Without “big business” we wouldn’t have nearly the size of the economy that we do have. It’s foolish to think that raising the taxes on them will do any good. You ask where all the jobs are because of the tax cuts? (I’m falling into your trap of pointing backward here) Under Bush the unemployment rate fell as low as it had been since the 1950′s. The increased spending under this administration and it’s policies of increased regulation have weakened the dollar and made investors wary of extending themselves any further. Everytime the government has tried to take the roll in job creation it has done nothing but make the unemployment rate rise. However, when they step back and allow the businesses to have a freer hand the unemployment rate has dropped.

    I’d be interested in where you think I get my information. Fact is, you have no idea. But the things that you repeat make it obvious where your sources are. Just for the sake of disclosure I will give you some of mine: CBO, Restore the Republic, The Concord Coalition, Huffington, the presidential newsletter, Bloomberg, Drudge, Ron Paul etc… I draw my information from all sources blue or red. From those sources I weigh them against the Constitution (which I carry with me everywhere). I am not a Republican, Democrat or Tea-Partyist. I am a Constitutionalist. Most of the stuff the president has done has been against that Contstitution.

    I will continue to read Prune Juice Media if only to inject some reality into the mess that is being championed here.

  2. atkinsoniv -

    Thanks for your comment. But, let me correct you on a few items that I see you have misunderstood about my post and my views. I see a pattern of you filling in blanks that are not open and putting words in my mouth. Let me stop you while you’re ahead.

    First, I never argued for tax increases ONLY on the wealthy while letting the middle class get away with not paying anything. I would like to see a system of rising taxes for everyone for a while to help get us out of debt. There are no revenue raisers in this debt ceiling bill.

    The GOP wanted to assure that they could get away with their “cuts only” approach and keep rewarding corporations (the real tax cheats) and supporters of ongoing, pointless tax cuts. And frankly, tax cuts for the rich don’t do anything to bring in additional revenue. They also haven’t done much to “create jobs” as their proponents claims, considering this is the 10th year of the Bush tax cuts. Where are these precious jobs that the job creators are making?

    No, I have not read Atlas Shrugged, but what does that have to do with the debate at hand? Lol. It’s funny you don’t “assume” that I have read that? I’m sorry, but I missed the memo that said you were providing me with a summer reading list. You can keep that off-center comment.

    Since you did reference the book, though, and people “leaving,” where will they go? As long as corporations can keep offshoring profits, the tax code stays complicated, and tax breaks stay in place, why would they leave? And if things are so horrible here now, why haven’t they already left?

    I can see some of your points about the flat tax, as I have had this conversation with other supporters. However, this idea that the poor and middle class don’t pay anything confuses me. Did they completely do away with sales and payroll taxes overnight? I don’t think so.

    You keep preaching about this spending increase under Obama. But clearly, you have forgotten about the two wars fought off budget under George W. Bush. And you have yet to address the TARP bailout also started by him in September 2008 or the expansion of government (ex: Dept. of Homeland Security) on his watch. Conservatives love to sweep those little facts under the rug. Especially with the wars, how that never figures into the accounting just baffles me.

    You can continue to incorrectly think that all I do is quote the president, CNN, and these other leaders you don’t like. I don’t need to attack you to get my points across. Your positions and their source(s) are obvious.

    Thanks again for reading Prune Juice Media!

  3. ybl

    thanks for the update:(

  4. atkinsoniv

    Of course you want the wealthy to pay more. It's also fitting that you don't want Social Security, Medicare, Medicaid and food stamps to be tampered with. ~52% of Americans pay no taxes, yet the people in that "tax" bracket consume all of the services. In effect you want someone else to pay somebody else's bills. Let me put it like this: would you go through a grocery store and get whatever you want then expect the person behind you to pay the bill?

    Stevie, the top two percent pay something like 90% of the taxes as is. You want them to pay more. It's dangerous when the people who have no stake in a thing start demanding more of those who do. What can ultimately happen is those with the interest will leave. Ayn Rand highlighted this in Atlas Shrugged. I don't imagine you've read that though. What we need is to stake everyone equally with a flat tax rate. If everyone paid something like 15% even the lowest worker could say he's putting forth as much as the highest earner. After all, aren't you after equality? It's interesting that most who preach equality are really only try to demand more of someone else so they can do less.

    When all is said and done this president and his policies will have raised the national debt by $6+ trillion. It took us 230 years to get to $10 trillion but only for more to get to 16. That isn't because of a faulty tax code or a disparity in the tax brackets. It's because of out of control spending. Why must we cut spending and reform or eliminate Social Security, Medicare and Medicaid? Because if we don't they will eat us alive. If we continue to let them grow at the current rate by somewhere around 2027 they will require all of the revenue the government brings in. At that point you can forget the military, EPA, CIA, Forest Service, unemployment, etc. That is with today's spending levels. When we get there you would have to double the taxes on the wealthiest just to hang on. That would force the to pay between 80-90% of their income. EQUALITY!!!

    Have you sat down to actually consider these things you're saying? Or do you simply watch CNN, President Obama, Harry Reid, Nancy Pelosi or read Huffington then come here and paraphrase them? It seems that the latter is the reality.

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