blackhawk
Diamond Member
The President is fond of saying to Republicans you can't cut your way to prosperity I would just like to remind him and the Democrats you can't spend your way out of debt either since they seem dam determined to try.
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Hey, here's an idea: why don't people buy their own damn smart phones.
You want more technological innovation? Cut regulations and taxes that reduce incentives to do exactly that. Get gov't out of the way of business. These are people who can't sell whiskey and run whores and make a profit.
The President is fond of saying to Republicans you can't cut your way to prosperity I would just like to remind him and the Democrats you can't spend your way out of debt either since they seem dam determined to try.
Yeah Obama got a big increase in revenue/ But not enough so now he wants more.
What is the Democratic plan to reduce spending? Ohyeah, they have none. We gotta keep spending to avoid bankruptcy.
Hi, I'm new here. I understand that the issues concerning how to best deal with the debt are a hot button issue. If we had an ideal world, I think the best solution would be to have legislative targets for budget cuts based on economic performance. For example, it would have been better for the economy if we had committed to reduce spending (or increase revenue) by a certain percentage once unemployment falls below X% (fill in your number here, I'd personally say about 6.5%). This would have the effect of telling the world were serious about controlling our deficit, but at the same time it would not have but our economy in further jeopardy while we were still trying to recover from a general global economic malaise.
Unfortunately, we're not in *my* ideal world (I have no doubt, some people would disagree with my perspective of ideal). So the issue is being dealt with today. If we can drop out the rhetoric I think we're more likely to come up with reasonable solutions. As a general principal, in the short term, tax cuts or spending increase do stimulate the economy whereas, tax increases and spending cuts have an adverse effect on the economy. It is illogical to suggest that tax cuts help the economy and spending increases don't or vice versa, from a budget stand point they do the same thing. To prove this is relatively easy:
If you were making government policy and you wanted to stimulate technological growth and provide better resources to our people, you might very well consider trying to get more smart phones in the hands of the public. You could do this in one of two ways: 1) You could allow a $50 deduction on your taxes for any smart phone you bought, or 2) You could hand out a $50 coupon to people to use towards the purchase of a smart phone.
In one case you're implementing policy via a tax break and in the other your implementing policy via a spending increase. The net effect on the economy will be exactly the same. The net effect on the gov't budget will be exactly the same.
This isn't to say that all tax breaks and all spending increase have an equal effect at stimulating the economy. Also, much of the effect is temporary in either case. In the example above, initially this might cause more smart phones to be bought and get a great number of them into the hands of the population, but eventually the manufacturers of smart phones will increase the price by $50 and pocket the stimulus money.
The real way to solve the budget crisis is to review every single tax deduction, and every single spending program and figure out which ones are the best candidates to reduce or illuminate. Statistically I don't know what the breakdown would be, but it certainly wouldn't be all of one or the other.
First, welcome.
Second you have to figure a way to get the dems to pass a budget. The reason they prefer to operate on continuing resolutions is there is no way to reset the baseline, because it is just continuing the previous budget. So basically what we are operating on is the 2009 budgets with all the automatic increases built in. So just realize there are real reasons the dems are doing what they are and it has nothing to do with the best interest of the country.
First, welcome.
Second you have to figure a way to get the dems to pass a budget. The reason they prefer to operate on continuing resolutions is there is no way to reset the baseline, because it is just continuing the previous budget. So basically what we are operating on is the 2009 budgets with all the automatic increases built in. So just realize there are real reasons the dems are doing what they are and it has nothing to do with the best interest of the country.
Hi, I think you have a valid point here, but with some caveats. I believe, and I could be wrong here, that the House is responsible for proposing budgets. I also think the republicans have filibustered the proposals in the senate (I maybe wrong on this too). Regardless of the two points above your point about automatic increases that are built into legislated spending is well taken. These programs, though, are not strictly Democrat in nature. The medicate part D was never paid for and costs more and more money each year. No Child left behind has this issue too. I'm not placing blame on one party or the other, what I'm saying is that the solution to this problem happens, when both parties sit down and stop arguing over which is better tax increase or spending cuts. That isn't a real argument, as they net out to the same thing. We have a much better chance of doing things efficiently and successfully when we look at all tax deductions and all spends and select from the whole pool which needs to go. I don't care who pushes the grand solution, but BOTH parties need to stop making it a war over how we cut the budge and instead argue over where we cut.
Only bills raising revenue are required to originate in the house. Congress has to start doing business the way they were intended to in order to get the results you're asking for. I don't see that happening, even with the threat of the senate losing their pay if they don't pass a budget. The two houses of congress are supposed to pass budget bills, then the two are supposed to got to a reconciliation committee to fix the differences and then sent back to both houses for another vote. This has not happened in 4 years even though the house has passed a budget every year. So tell me, who is doing the obstruction when the senate refuses to pass a bill to go to reconciliation?
The sequester was part of a budget deficit deal whose purpose was reducing the deficit. Both spending cuts and revenue increases reduce deficits.Sequester is about reduced spending, not tax increases, if the dems would stay on point there would be no problem. Instead the dems want increased revenue for promised future cuts, which have never materialized after past promises so the republicans aren't buying their BS.
No the sequester was put in place to try and force both sides to make a deal to keep the sequester cuts from happening it was not part of a budget deficit deal. Yes spending cuts and revenue increases the new Democrat term for raising taxes which is fooling no one by the way will reduce deficits the thing is Obama got his tax increases not once but twice this year when the Social Security tax went back to 6.2% and in the fiscal cliff deal when he got his tax increase on the rich. Now he wants another tax increase three tax increases in two months with minimal spending cuts is not my idea of a balanced approach.
Can you prove any tax increase caused by the Democrats? Having tax cuts expire is not increasing taxes and the return to previous tax rates are less on the wealthy than what they were before the tax cuts. Who is responsible for the legislation requiring the tax rates to return to previous levels?
Now, why are closing tax loopholes considered a tax increase? Why can't they examine a loophole and consider if it's wise on their own merits?
The sequester comes directly from the BS Pub debt ceiling crisis, a new low in obtuseness and a disaster for the US and world economies. Little known fact with our pathetic media...
I think the best solution would be to have legislative targets for budget cuts based on economic performance. For example, it would have been better for the economy if we had committed to reduce spending (or increase revenue) by a certain percentage once unemployment falls below X% (fill in your number here, I'd personally say about 6.5%). This would have the effect of telling the world were serious about controlling our deficit, but at the same time it would not have but our economy in further jeopardy while we were still trying to recover from a general global economic malaise.
The loopholes Obama is talking about are in regard to the bloated rich.
First, welcome.
Second you have to figure a way to get the dems to pass a budget. The reason they prefer to operate on continuing resolutions is there is no way to reset the baseline, because it is just continuing the previous budget. So basically what we are operating on is the 2009 budgets with all the automatic increases built in. So just realize there are real reasons the dems are doing what they are and it has nothing to do with the best interest of the country.
Hi, I think you have a valid point here, but with some caveats. I believe, and I could be wrong here, that the House is responsible for proposing budgets. I also think the republicans have filibustered the proposals in the senate (I maybe wrong on this too). Regardless of the two points above your point about automatic increases that are built into legislated spending is well taken. These programs, though, are not strictly Democrat in nature. The medicate part D was never paid for and costs more and more money each year. No Child left behind has this issue too. I'm not placing blame on one party or the other, what I'm saying is that the solution to this problem happens, when both parties sit down and stop arguing over which is better tax increase or spending cuts. That isn't a real argument, as they net out to the same thing. We have a much better chance of doing things efficiently and successfully when we look at all tax deductions and all spends and select from the whole pool which needs to go. I don't care who pushes the grand solution, but BOTH parties need to stop making it a war over how we cut the budge and instead argue over where we cut.
Can you prove any tax increase caused by the Democrats? Having tax cuts expire is not increasing taxes and the return to previous tax rates are less on the wealthy than what they were before the tax cuts. Who is responsible for the legislation requiring the tax rates to return to previous levels?
Now, why are closing tax loopholes considered a tax increase? Why can't they examine a loophole and consider if it's wise on their own merits?
I think they should be considered tax increases, but its not a bad thing. We need to stop applying labels to stuff to make them seem more palitable. For example: "Tax Loophole" is a loaded term. A mortgage interest deduction is a "Tax Loophole". So is the deduction for state taxes. Loophole implies that there was a mistaken "hole" in the tax system. These aren't mistakes. These deductions (I'm not going to call them loop holes) were intended to stimulate parts of the economy (or, if you are more cycnical, they were pushed in by lobbiests on behalf of interested parties). Either way, removing the ones that have limited effect on our economy is a good thing. But IT IS a tax increase. The govenment will be increasing the revenue side of the equation.
Repped up for this post, which is the closest thing I've seen so far to what we really need. There are hundreds of programs that need refined and streamlined.
Cutting out unecessary subsidies, cutting out redundancy, cutting out things that either have a zero or negative effect could save us tons of money.
Cutting tax breaks that are geared towards those that can easily afford to pay their fair share and implementing a stimulus program that creates permanent jobs will increase revenue.
Long term, all of the above.
The Bush tax cuts were passed by the reconciliation process and that means they have to expire, if they aren't revenue neutral, so Obama didn't raise the taxes. The fact is, the present tax laws have less taxes than before. The Republicans cut the taxes in a manner that caused them to raise back to the original levels. The Republicans had the option to work out a permanent tax rate and didn't do it. Since the Republicans voted for a law that reset the taxes, they raised the taxes by passing the tax cuts.
The Bush tax cuts were passed by the reconciliation process and that means they have to expire, if they aren't revenue neutral, so Obama didn't raise the taxes. The fact is, the present tax laws have less taxes than before. The Republicans cut the taxes in a manner that caused them to raise back to the original levels. The Republicans had the option to work out a permanent tax rate and didn't do it. Since the Republicans voted for a law that reset the taxes, they raised the taxes by passing the tax cuts.
My bad. I misread your original post. You DID say expiring. I was thinking more in general. It is true that letting tax cuts that are marked as temporary expire is NOT the same as raising taxes. Allowing those tax breaks to expire would fix most, but not all of the budget deficit. However, the question is do people want to trade some spending cuts for keeping some of those tax cuts. Also, should we possibly rework the whole tax code and get rid of many deductions in general (which is what I thought you were originally aluding too).
Apologies for misreading your original post.
Only bills raising revenue are required to originate in the house. Congress has to start doing business the way they were intended to in order to get the results you're asking for. I don't see that happening, even with the threat of the senate losing their pay if they don't pass a budget. The two houses of congress are supposed to pass budget bills, then the two are supposed to got to a reconciliation committee to fix the differences and then sent back to both houses for another vote. This has not happened in 4 years even though the house has passed a budget every year. So tell me, who is doing the obstruction when the senate refuses to pass a bill to go to reconciliation?
Thank you OKTexas, I wasn't totally sure on what the rules were, but what you're saying make sense to me.
In regards to the senate there is apparently a procedural issue here. A simple majority is required to pass a budget, but it requires 60 votes to make it take effect.
I wanted to post a link to an economist article that documents what I'm saying, but I need to write 11 more posts before I can include a link. If you do a google search for "Why the Senate hasn't passed a budget " and "The Economist" I suspect you'll find the article. It was date Feb 15th, 2012.
However, I wasn't really accusing the House Republicans of failing the pass a budget or am I blaming them for the current impass. They are voting in accordance with how their constituents want them to vote. My issue is that I think the level of debate needs to be raised in the country as a whole. The issue is framed in terms of "Spending Increasers" versus "Tax Decreasers". This isn't a particularly useful fight. First off, from a budget stand point it make no difference. Second, from an economic productivity stand point it makes no difference. What really matters is what specific tax deductions do you remove. What specific programs that we spend money on now do you remove or downsize. The debate in public needs to talk about real things and representatives need to take stands on specific programs.
Is protecting the "death tax" more important than continuing Medicare part D? Are programs like Head Start more important than the Mortgage Interest Deduction? if you start putting all these things on a scale it we might start to be able to come up with real answers.
I Appologize if I end up double posting - it seems like my origianl reply didn't make it in.