jhay78;831173 wrote:Democrats know one thing: the Republican majority in the House was given that majority by the Taxed Enough Already Party. They know that if they can get the Republicans to cave (yet again) on the 3 to 1 spending cuts to revenue increases deal (which is the ultimate Lucy-pulling-the-football-away-from-Charlie Brown deal, because the cuts never happen or they vaporize into thin air over the next 10 years or whatever), then they can pin the "See, you can't trust those guys and their word" label on Republicans in Congress- just like they did to George HW Bush.
The Republican position is not unreasonable. You and David Brooks may not agree with it, but it's not like they're inventing it out of thin air. They came to power with a mandate, and I hope they follow through on it.
ashfsdhfldjs First of all I've already told you that the
"Revenue Increases" that BHO is proposing are eliminations of
inefficient government spending through the tax code....the elimination of carrots that deviate from economic norms and distort the investment decisions of capitalism and intervene in the free market place.....
Tea partiers should be for these revenue increases because they eliminate big government distortions in the market...that is if they had any coherent ideological footing to stand on!
Never mind that easily more than HALF of the
taxed enough already party doesn't pay a dime in federal income taxes based upon their demographics according to Gallup!
The TEA Party is intellectually bankrupt. They say that we're taxed too much despite being the lowest taxed country in the OECD and then go on to complain that 47% of Americans don't pay any taxes, when their demographics suggest that an even greater percentage of TEA partiers don't pay taxes either! They say the wealthy pay too much in taxes but if we listened to them even more of the tax burden would fall on the wealthy. Tea Party apologists on TV will explain that what they're really asking for is lower rates and a broader tax base to diffuse America's tax responsibility. But if half the Tea Party doesn't pay income taxes today, a broader tax base -- even with minuscule rates -- would raise many of their taxes!
That's what they don't get, these tax expenditures which are really just government spending make it so they don't pay any taxes and yet they complain about being taxed to much when the crux of the matter is that
What amounts to government spending has preserved the fact that most tea partiers don't pay taxes and yet they don't understand this and rail against government spending. Oh but then they mystically support the Paul Ryan plan which shifts the tax burden
Onto TEA Partiers by eliminating the distortionary tax expenditures that they're calling "tax raises" in the current budget debate.
The party's labyrinthine position on tax policy isn't worth untangling any further. They have no solid intellectual foundations. It's a Gordian Knot that deserves a guillotine. It is a political movement that has taken over the news cycle like a particularly aggressive strain of ragweed.
Nevermind that they've actually been successful as they've gotten the entire government....even the socialist prince himself to believe in the myth of expansionary austerity! austerity programs cast shadows: raise unemployment now via austerity cuts in government spending, and some of that increased unemployment sticks around permanently as higher structural unemployment worsening the
long run debt and deficit picture so long as S (Stuck Around Unemployment) + G (the Long Run Growth Rate which is around 3%) is greater than R (The Interest Rate on Government Debt which is around 2%); And S+G is definitely greater R
thirty-year Treasury inflation-indexed security rate at 1.62% per year is lower than the expected long-run growth rate of the real economy right now of close to 3% per year. The NeoClassical (not Keynesian) "Golden Rule" for optimizing economic growth is that f the economy ever gets itself into a situation in which risk-adjusted long-run interest rates are lower than the risk-adjusted expected long-run growth rate of the economy, it is
dynamically inefficient--and government should borrow and spend and keep borrowing and spending until at least it drives long-term interest rates up to and above the risk-adjusted expected long-run growth rate. This all true without even appealing to a single Big Gubmint Socialist Keynesian idea or admitting to the fact that we're in a Liquidity Trap.
Yet Republicans and Obama are at a stalemate over how to make our economy more dynamically inefficient over the long run because some tea partiers started yelling.
just look at this beautiful St. Anthony Falls Bridge;
It was a collaborative project, paid for by the much derided stimulus funds.
Every engineering body in the country has put in one report or another on the terrible state of America's highways, bridges, sewers and what-have-you. Hell, when you drive from Toronto to any place in the auto-manufacturing belt, the way you know you've left Canada is that the highway suddenly goes all to hell. Hitting the States is like taking a trip ten or twenty years back in time.
Imagine if we'd just follow basic, classical economics text books (IF S+G > R then Borrow!) and borrow money from Uncle Ben for 5 years at
-0.52% and start putting people back to work instead of listening to the tea party!