Pass The Damn Bill

The stakes for the next budget battle are even greater than the one just completed. If Congress fails to authorize an increase in the debt limit the result could be devastating. History and current Republic statements indicate that many Republics will not vote for an increase without guarantees of drastic spending cuts.

There will be an agreement before the United States defaults. Banks and big business know that default is not an option. Even threats could damage the credit standing of the United States in the world. Business will jerk the leashes of Republics and make sure a bill is passed.

I would like to make a suggestion. Republics should agree to increase the debt limit enough to cover the debts projected for the next three years under the Ryan budget without any policy riders. That's right, for all their huffing, the Ryan plan has significant annual budget deficits for years to come.

Can Republics really destroy the credit of the United States when their own budget plans will require that the debt ceiling be raised significantly?

In three years, the Republics will have time to elect a Republic Senate and a Republic President. Then they can do whatever they want. In the meantime, raise the debt ceiling without bullying and threats so we can tackle other issues. Like the FY12 budget.

What Is Important To You?

Republicans hate government. Keep that in mind as you listen to their solutions to problems. The Republican approach to financing government is to cut taxes then figure out what services to cut to live within that new number. How about a different approach?

What if we tried to agree on what is important to us and then figured out the most cost effective way to make it happen?

For example, what if we said that it is a national goal that all senior citizens are able to live out their final years with dignity, access to health care, housing and nutrition? We could then talk about what levels of assistance meet these goals, who qualifies and how we pay or provide this assistance.

Money is the easiest way to transfer value from one person to another, but there are other ways. We might help offset some costs by requiring two years of community service from all young adults. One of the options would be for some these young people to help take care of the elderly. Or build and repair houses. Or cook and deliver food. Or staff a community home. This would decrease taxes and offset the lost revenue with labor.

Anyone might be able to opt of paying taxes to support elderly and instead meet their obligation by working some number of days each year. I'm sure there are other, much better ideas. The point is instead of generating n dollars of revenue and then deciding how we divide that pool of money, why not decide what is important to us and then figure out how to make it happen?

As a country, how about discussing what is important to us?

Look For Alternatives

Mark Halperin was on Hardball with Chris Matthews tonight. He wanted to give Representative Ryan credit for a plan to cut Medicare because if we don't cut it, costs will balloon and bankrupt the country.

Wait a minute. He has bought the Republican line. Medicare may need to be changed, but why isn't the possibility of adding revenue to the system an option? Couldn't there be parts of Medicare that are so valuable we might consider ways to increase funding to save them rather than cut service?

The Republicans only have two ways to solve a problem. Cut services or cut taxes. We probably will have to cut something, but there may be alternatives if we look for them.

Shared Pain

Representative Ryan has released his budget plan.

It cuts -
Social Security
Medicare
Medicaid
Taxes for business
Taxes for the rich

Give him credit. He makes sure everyone takes their share of cuts.

What would you pay for?

In the current debate over the deficit and budgets, Republics want to take any tax increase off the table. Their current framing is, we don't have a revenue problem, we have a spending problem. That is, cut spending; do not raise taxes.

It is clear that Republics and Democrats have a different philosophy about the purpose of government and how to pay it. In general, Republics believe that less government is always better (at least that is what they say, if not always what they do). Government is the problem, not the solution. Republics want to decide how much they are willing to spend on government (which is always less than what we spend today) and then determine how to distribute that money. Preference is always given to the generators of wealth.

In general, Democrats believe that government is about creating a civil society. Democrats would rather first decide what is important to do and then decide how to pay for it (sometimes). Preference is given to the less fortunate. The Democratic position is obviously harder to sell.

While Democrats have certainly authorized new spending without determining how the additional expenditures would be paid for, they managed to live under the PAYGO rules of the 1990's. Had these rules been extended, the budget busting 2003 tax cut, the Medicare prescription program and the wars in Iraq and Afghanistan might have had to have been paid for instead of just adding to the debt.

The two Bush era tax cuts added significantly to our debt. Let me state again, tax cuts when you are already running a deficit without the same dollar cuts in spending add to the long term debt! Republics constantly berate Democrats about spending more than we have revenue to pay far and passing that debt on to future generations. Fair enough. But cutting taxes without cutting spending has the same affect and is just as destructive. The math is simple. Revenue minus expenses equals surplus or debt. When you are already running a deficit, increasing spending without increasing revenue will increase the debt. Likewise, decreasing revenue without decreasing spending will increase the debt.

Contrary to popular belief, the Republics have actually been winning the deficit/debt debate. "Starve the Beast" has been Republic dogma since Ronald Reagan. This is the policy of always cutting taxes without concomitant cuts in spending in the belief that the eventual fiscal crisis will force drastic decreases in the size of government.

Republics have succeeded. The public believes we have a fiscal crisis generated by too much spending not a problem generated by a weak economy, tax cuts and spending. The discussion is how do we cut taxes, expenditures and the size of the government. Why aren't we also discussing what functions of government are worth paying taxes to support and how do we generate the revenue to pay for them?

Republics Got Deficit Religion

Senator Judd Gregg was on NPR today complaining about deficit spending by President Obama. He was outraged that Democrats were heaping debt on our kids and grand kids.

This is standard Republic talk. I was appalled by the deficits run up under President Bush. Why weren't Republics concerned then? Suddenly they've gotten deficit religion.

Sorry guys, you missed your chance. If President Obama currently had the financial situation that George W. Bush had when he became president, I'd be on you side.

As it is, we are in a massive hole that in large part was created by President Bush and the Republics.

I suggest Republics wait for 8 years. We can then see how well President Obama did with the economy he inherited compared to what President Bush did with the economy he inherited.

Until then, Republics, SHUT UP!