Breaking News: GOP House will increase deficit

[All Along The Watchtower]

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http://www.cbpp.org/cms/index.cfm?fa=view&id=3359

So tax cuts don't matter, but mandatory spending does when it comes to the deficit,  according to the GOP's own rules.

[memphis]

Obviously. Obsessing over lowering tax rates without addressing substantial spending (SS, Medicare, and the military) neccessarily increases the defecit. Any 3rd grader could do the math. Where's Jeff Foxworthy when you need him?

[Associate Justice PiT]

     Well there's no surprise there; the deficit will keep exploding for the foreseeable future.

[LBJ Revivalist]

I thought it was only the evil socialist Democrats (tm) who increase the deficit. I thought Republicans were the good guys who were going to return us to 1789.

[Free Palestine]

Lol, fiscal responsibility.

[Torie]

     Well there's no surprise there; the deficit will keep exploding for the foreseeable future.

That is not possible economically. Interest rates will rise, and the cost of carry of the federal debt, and the willingness of folks to buy it, will cause a budget meltdown. The exploding deficit must be dealt with.

[Sbane]

     Well there's no surprise there; the deficit will keep exploding for the foreseeable future.

That is not possible economically. Interest rates will rise, and the cost of carry of the federal debt, and the willingness of folks to buy it, will cause a budget meltdown. The exploding deficit must be dealt with.

I don't think the pubbies in congress get that. Or at least they are still delusional enough to believe that all tax cuts produce an increase in revenue.

[Beet]

Tax hikes and spending cuts are what's needed.

[WillK]

This really isnt breaking news.    Its what is expected of the GOP.

[opebo]

That is not possible economically. Interest rates will rise, and the cost of carry of the federal debt, and the willingness of folks to buy it, will cause a budget meltdown. The exploding deficit must be dealt with.

Why would interest rates rise, Torie?  The world is awash in underutilized capital (we're in late-stage capitalism with extreme inequality).

[Torie]

That is not possible economically. Interest rates will rise, and the cost of carry of the federal debt, and the willingness of folks to buy it, will cause a budget meltdown. The exploding deficit must be dealt with.

Why would interest rates rise, Torie?  The world is awash in underutilized capital (we're in late-stage capitalism with extreme inequality).

Even if it were true that real interest rates stay low for the forseeable future because of an "over supply" of capital (which I tend to doubt), that still leaves default risk and inflation as factors militating in favor of higher rates over time. I assume that you are aware, that most of the US debt is now relatively short term (where interest rates are lower), so if interest rates kick up, it will be almost immediately and massively reflected in an increased debt carry. To my mind, it is a very dangerous situation.

[Badger]

Why oh why do people purporting concern over the deficit and debt think voting Republican will somehow help, or even be worse than the alternative? Obama raised the deficit in the short term from a massive drop in tax revenue he inherited, and trying to stimulate the economy during the worst recession in almost 80 years. This certainly seems to be exigent circumstances requiring a short term increase. But if the last 30 years have taught us anything its that for the GOP and their addiction to across the board tax cuts, record breaking deficits are merely the norm.

And as this article demonstrates, that's not likely to change anytime in the next decade either.

Oh well, at least Republicans rediscovered outrage at deficits for the first time in 30 years, even if it only lasted two years one campaign cycle.

[Southern Senator North Carolina Yankee]

Why oh why do people purporting concern over the deficit and debt think voting Republican will somehow help, or even be worse than the alternative? Obama raised the deficit in the short term from a massive drop in tax revenue he inherited, and trying to stimulate the economy during the worst recession in almost 80 years. This certainly seems to be exigent circumstances requiring a short term increase. But if the last 30 years have taught us anything its that for the GOP and their addiction to across the board tax cuts, record breaking deficits are merely the norm.

And as this article demonstrates, that's not likely to change anytime in the next decade either.

Oh well, at least Republicans rediscovered outrage at deficits for the first time in 30 years, even if it only lasted two years one campaign cycle.

You forgot something else though. That Obama has raised spending levels outside of recession related measures, also.

The Republican party will never be caught dead voting for a tax increase of any kind. That ship sailed when the body of George H. W. Bush's political career reached room temperature in 1992. Republicans have been labeling the Democratic paygo rule as Taxgo since it was enacted in 2007, so this is entirely expected and promised changed for over four years now.

[Associate Justice PiT]

     Well there's no surprise there; the deficit will keep exploding for the foreseeable future.

That is not possible economically. Interest rates will rise, and the cost of carry of the federal debt, and the willingness of folks to buy it, will cause a budget meltdown. The exploding deficit must be dealt with.

     But it won't be dealt with, which is the issue. I only say foreseeable because I lack the foresight to know when the proverbial midnight will be. Ultimately, I hope that I am just being really pessimistic, but I wouldn't count on that.

[King]

Why oh why do people purporting concern over the deficit and debt think voting Republican will somehow help, or even be worse than the alternative? Obama raised the deficit in the short term from a massive drop in tax revenue he inherited, and trying to stimulate the economy during the worst recession in almost 80 years. This certainly seems to be exigent circumstances requiring a short term increase. But if the last 30 years have taught us anything its that for the GOP and their addiction to across the board tax cuts, record breaking deficits are merely the norm.

And as this article demonstrates, that's not likely to change anytime in the next decade either.

Oh well, at least Republicans rediscovered outrage at deficits for the first time in 30 years, even if it only lasted two years one campaign cycle.

You forgot something else though. That Obama has raised spending levels outside of recession related measures, also.

The Republican party will never be caught dead voting for a tax increase of any kind. That ship sailed when the body of George H. W. Bush's political career reached room temperature in 1992. Republicans have been labeling the Democratic paygo rule as Taxgo since it was enacted in 2007, so this is entirely expected and promised changed for over four years now.

Are you proud of this?

[Beet]

George H.W. Bush lost in 1992 because of the 1990-91 recession and because of GOP fatigue, not just the tax issue. Reagan raised taxes in 1982 and 1986 and at least one year in between, and it didn't prevent his re-election. Clinton raised taxes in 1993. I don't think raising taxes is totally toxic. It depends on the circumstance.

[Sbane]

Why oh why do people purporting concern over the deficit and debt think voting Republican will somehow help, or even be worse than the alternative? Obama raised the deficit in the short term from a massive drop in tax revenue he inherited, and trying to stimulate the economy during the worst recession in almost 80 years. This certainly seems to be exigent circumstances requiring a short term increase. But if the last 30 years have taught us anything its that for the GOP and their addiction to across the board tax cuts, record breaking deficits are merely the norm.

And as this article demonstrates, that's not likely to change anytime in the next decade either.

Oh well, at least Republicans rediscovered outrage at deficits for the first time in 30 years, even if it only lasted two years one campaign cycle.

The Republican party will never be caught dead voting for a tax increase of any kind.

Ah, the fiscally "responsible" party.

[Torie]

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Oh where and when have I heard that before?    "Never" is a long time. But if by "never" you mean within the next 6 months, I think that you are exactly right. Time horizons matter.

By they way, why is it that some of the "never-to-the-bitter-enders," when it comes to tax hikes are now talking about an 85% spending cut, 15% tax increase deal, lashing away at Obama whom they suspect is more of a 50-50 kind of guy?  The Deficit Commission went for about a 58% spending cuts, 42% tax increases split apparently, which was supported by those notorious tax increase lovers, Senators Coburn and Crapo.

The dirty little secret is that tax increases are already baked into the Pubbie pie. Now the fight is on the mix of cuts and tax increases, and just how much of a deficit to tolerate. It should be fun.

Is there anything left to chat about on this, or have I said it all, leaving nothing else to be said?  Cheers.

[Iosif]

Interesting (funny) segment on FOX about this.

http://www.youtube.com/watch?v=kzK5ufY6cTo&feature=sub

[Southern Senator North Carolina Yankee]

Why oh why do people purporting concern over the deficit and debt think voting Republican will somehow help, or even be worse than the alternative? Obama raised the deficit in the short term from a massive drop in tax revenue he inherited, and trying to stimulate the economy during the worst recession in almost 80 years. This certainly seems to be exigent circumstances requiring a short term increase. But if the last 30 years have taught us anything its that for the GOP and their addiction to across the board tax cuts, record breaking deficits are merely the norm.

And as this article demonstrates, that's not likely to change anytime in the next decade either.

Oh well, at least Republicans rediscovered outrage at deficits for the first time in 30 years, even if it only lasted two years one campaign cycle.

You forgot something else though. That Obama has raised spending levels outside of recession related measures, also.

The Republican party will never be caught dead voting for a tax increase of any kind. That ship sailed when the body of George H. W. Bush's political career reached room temperature in 1992. Republicans have been labeling the Democratic paygo rule as Taxgo since it was enacted in 2007, so this is entirely expected and promised changed for over four years now.

Are you proud of this?

Why would that matter?

George H.W. Bush lost in 1992 because of the 1990-91 recession and because of GOP fatigue, not just the tax issue. Reagan raised taxes in 1982 and 1986 and at least one year in between, and it didn't prevent his re-election. Clinton raised taxes in 1993. I don't think raising taxes is totally toxic. It depends on the circumstance.

Why do you people confuse what I think with what I say other people think?

You are right and several GOP governors have survived tax hikes like I think Bob Riley did in AL, however the GOP as a whole has a different version of events from the Bush administration.

You must be logged in to read this quote.

Oh where and when have I heard that before?    "Never" is a long time. But if by "never" you mean within the next 6 months, I think that you are exactly right. Time horizons matter.

By they way, why is it that some of the "never-to-the-bitter-enders," when it comes to tax hikes are now talking about an 85% spending cut, 15% tax increase deal, lashing away at Obama whom they suspect is more of a 50-50 kind of guy?  The Deficit Commission went for about a 58% spending cuts, 42% tax increases split apparently, which was supported by those notorious tax increase lovers, Senators Coburn and Crapo.

The dirty little secret is that tax increases are already baked into the Pubbie pie. Now the fight is on the mix of cuts and tax increases, and just how much of a deficit to tolerate. It should be fun.

Is there anything left to chat about on this, or have I said it all, leaving nothing else to be said?  Cheers.

Its called plausible deniability. Basically hidding an overal tax hike behind rate cuts. The problem is the Talk Radio, or atleast Dick Morris, has already turned against Coburn for that. So I won't be suprised if it is "more fun" then even you expect.

[Torie]

Yes Yankee. Redoing the tax code is an essential part of this all. Absent that, we are all going down, because the Gordian Knot cannot be cut without it, as a practical matter - both politically - and economically.

Good post by the way.

[Southern Senator North Carolina Yankee]

Yes Yankee. Redoing the tax code is an essential part of this all. Absent that, we are all going down, because the Gordian Knot cannot be cut without it, as a practical matter - both politically - and economically.

Good post by the way.

Yours wasn't bad either. Except of course, for your last sentence. There will always be something missed, overlooked or not considered.