Senate vote done, US government avoids default
The U.S. Senate passed a last-minute compromise plan to raise the nation's $14.3 trillion debt ceiling Tuesday, sending the bill to President Barack Obama to be signed into law only hours before what would have been an unprecedented default.
The agreement -- reached Sunday by Obama and congressional leaders from both parties -- calls for up to $2.4 trillion in savings over the next decade, raises the debt ceiling through the end of 2012 and establishes a special congressional committee to recommend long-term fiscal reforms.
From CNN
This debate was far too loud, lasted far too long, and quite frankly shouldn't have ever happened in the first place. While the government certainly is in need of financial reform, tying that to the debt ceiling was unnecessary. The debt ceiling has been raised 10 times since 2000 (7 times under Bush, 3 more so far under Obama) with no fanfare or debate. Make no mistake: a federal budget vote as a requirement to raise the ceiling was partisan politics, with ideological extremists (particularly the Tea Party) holding Congress hostage over the negotiations. This was a manufactured crisis, done by Representatives who have stopped listening to the public and badly damaged this country's standing in the world simply to make a point.
10 months ago
Oceanary
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I've voted in pretty much every election since I was able and certainly
every Presidential election. But this go ‘round, I’m so fed up with everyone that I just want to stay home. I don’t want to vote for Spineless Obama again, but all of the Republican candidates who have a shot at the nomination seem like wackos. Congratulations, Washington. You’ve disenfranchised me.
Follow me on Twitter @timallenonline
by TimAllen on Aug 2, 2011 1:45 PM CDT reply actions 2 recs
The Tea Party is just out of control
I mean, they’re well intentioned , but they just don’t at all know what they’re actually talking about.
I listened to the press conference Rep Cravaak held to explain why he was voting ‘no’, and man….it was like listening to a baritone Sarah Palin. “I believe the government is not what for the thing that spends and we must in prevent that which we do not sleep at night. Cut everything anarchy.”
This whole thing quickly devolved into soundbites and bickering. By the time the Speaker brought his second bill to vote, it was clear the sides cared more about their platform than their country.
by Oceanary on Aug 2, 2011 1:59 PM CDT up reply actions 3 recs
Have you ever actually been to a Tea Party event?
Because I have been to many of them and I find your opinion of the Tea Party movement to be grossly inaccurate. In general I have found Tea Party people to be passionate, intelligent and exceptionally knowledgeable. Almost everyone who shares your opinion has never actually taken the time to go to a Tea Party event. I recommend attending one with an open mind. I’ve brought several guests with me in the past and they all made comments about it not being what they expected at all.
I've got good judgement from experience and experience from bad judgement.
by ArchAngel79 on Aug 2, 2011 2:49 PM CDT up reply actions 2 recs
you might want to qualify between a Tea Party candidate and a Tea Party member
politicians are politicians. No matter who they claim to represent they all tend to take highly unrealistic positions to pander to what they think their base wants. It’s not the people who go to Tea Party events that are unrealistic…but rather the candidates who claim to represent them.
No one is getting Rubio's rights unless they pry them from our cold dead fingers.
by TheEvilProfessor on Aug 2, 2011 3:07 PM CDT up reply actions 1 recs
no, in my experience it's six-year-old girls, and their dolls and teddy bears.
None of whom have ever met an entitlement program they didn’t like.
Yes
but not exclusively so. The reason conservative politicians associate themselves with the Tea Party is because they believe in the same goals:
Fiscal responsibility
Limited government
Free market
Dingus Kahn, it's over
I can't speak to what (fiscal) conservative politicians believe
(if they can even be said to all believe the same things), but what they do is pursue these goals:
Pour money into the military industrial complex and start wars to justify it
Giant government dominated by military spending
A market that heavily favors corporate interests through subsidies and collusion
"Of what use is a philosopher who does not hurt anybody's feelings?" -Diogenes of Sinope
by Cynical Jason on Aug 2, 2011 7:28 PM CDT up reply actions 1 recs
Well
Certainly each individual is welcome to his/her own full list of beliefs. But, insofar as the Tea Party is concerned, I have stated what it represents.
BTW Yesterday’s Gallup poll showed 41% of those polled self-identify as “conservatives”, and only 21% self-identify as “liberals.”
Dingus Kahn, it's over
I self identify as a conservative
I believe in
- fiscal responsibility
- Keep the govt out of the bedroom and the functioning of women’s bodies
- Legalize most currently illegal drugs
- Separation of church and state
- Limit foreign wars and the size of the military
- The job of the state is to protect individuals from the oppression of big government and big business interests
As you have guessed, I am not a Republican as they oppose all of those goals.
Republicans are the party of big business and moneyed interests. That is not conservative.
The Dems are not conservative either, but they espouse at least some of those goals.
by timmuggs on Aug 2, 2011 8:29 PM CDT up reply actions 4 recs
Errr this is a bit convoluted
Some of these positions can be considered conservative
As far as the Republicans (of which I am none to fond) opposing all of those goals: The job of the state is to protect individuals from the oppression of big government and big business interests. Seriously? This is exactly what the Dems have been doing and the Tea Party Republicans have been opposed to.
I wish I had more time to wade through this mish mash of political ramblings.
I've got good judgement from experience and experience from bad judgement.
Funny how those polls work
after you pour hundreds of millions of dollars and decades of nonstop libel into transforming “liberal” from a description into a curse word.
Polls don’t show us how Americans feel about anything. They just let the marketing boys know if they need to tweak their message.
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
by TMiss on Aug 2, 2011 9:05 PM CDT up reply actions 5 recs
What you are referring to are mostly neo-con (i.e. big government republican) positions
The Tea Party doesn’t believe in any of those things, thanks for trying though.
Your first two points were neo-con positions and your third point is an obvious left-wing position, corporate subsidies and collusion.
I've got good judgement from experience and experience from bad judgement.
Seriously
could you link to any quotes by any Tea party leaders that denounce neoconservative policy in Afghanistan or Iraq (and if Libya only, an explanation of why Libya bad, Afghanistan/Iraq good). And could you also link to some quotes from the Tea party showing that they disapprove of REPUBLICAN votes to subsidize businesses.
I’ve heard the talk, I just never seem to see the walk. Liberals, especially liberal bloggers, rip the Democrats constantly over their collusion with Wall Street. Where are the attacks from the Tea party right on the mainstream, Wall Street-coddling Republican party of John Boehner and Mitch McConnell?
Basketball is basketball. – Oscar Robinson
They also believe in......
….bipedalism, oxygen and gravity. Come on, everybody “believes” in those things. The problem is that policy records haven’t been exactly matching up with stated beliefs; nor have they produced good results (of late…although there are exceptions).
by Stop-n-Pop on Aug 2, 2011 8:33 PM CDT up reply actions 1 recs
Assuming you consider yourself to be a Tea Partier,
where do you recommend that the federal budget be cut so that the budget can be “balanced,” without any tax increases?
This account is to be used solely for recommending sbjake's Fan Posts.
Shhhhh.
Just close your eyes. Magic fairy dust will make the deficit disappear and we can keep our wars going and the wealthy won’t have to pay any taxes. And the budget will be balanced by making the poor people disappear.
"Of what use is a philosopher who does not hurt anybody's feelings?" -Diogenes of Sinope
by Cynical Jason on Aug 2, 2011 3:33 PM CDT up reply actions 4 recs
This joke is totally wrong and obviously not remotely true, ever:
A CEO, a tea party member, and a teacher are all sitting at a table when a plate with a dozen cookies arrives. Before anyone else can make a move, the CEO reaches out to rake in eleven of the cookies. When the other two look at him in surprise, the CEO locks eyes with the tea party member. "You better watch him," the executive says with a nod toward the teacher. "He wants a piece of your cookie."
This account is to be used solely for recommending sbjake's Fan Posts.
by PoorDick on Aug 2, 2011 4:15 PM CDT up reply actions 9 recs
I shouldn't be laughing at that,
but I am.
"Of what use is a philosopher who does not hurt anybody's feelings?" -Diogenes of Sinope
by Cynical Jason on Aug 2, 2011 4:18 PM CDT up reply actions
Libya
would be a good starting point. Followed by Keynesian Utopian stimulus programs funding government pork.
One suggestion: Next time we encounter a 9/11 event, we should in return fire social security checks at the enemy instead of missiles.
Dingus Kahn, it's over
Question
Just out of curiosity – do you think the Bush-administration’s responsen to 9/11 was the right one? We just had our own terrorist attack here in Norway, and the response from our leaders has been to promise more transparency, more tolerance and more democracy.
I know the two incidents are wildly different, and that the aftermath of 9/11 might have influenced our leaders’ strategy, but it is still an interesting debate.
I prefer the Norwegian response, myself.
"Of what use is a philosopher who does not hurt anybody's feelings?" -Diogenes of Sinope
by Cynical Jason on Aug 3, 2011 1:36 AM CDT up reply actions 1 recs
I wish NYC had had a Hege and Toril to help out
The heroes of Utøya were, if anything, more impressive than the heroes of 9/11.
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
"I know the two incidents are wildly different"
Not sure why you are trying to tie the 9/11 response by the U.S. to something that is completely different, as you yourself acknowledged. A better comparison would be how the U.S. responded to the Timothy McVeigh terrorist attack.
by Rascal Flatts on Aug 3, 2011 9:30 AM CDT up reply actions
You could compare McVeigh to KSM
One received a criminal trial and execution.
The other will receive a military trial and execution.
One a U.S. citizen, the other a foreign combatant
I've got good judgement from experience and experience from bad judgement.
Comparing
It was my intention to compare the the Bush administration’s reaction to the one over here after Utøya. I do agree that the McVeigh-bombing has way more similarities to what actually happened, but I do not know very much about that incident, and therefore did not include it in the question.
I have a hard time reacting to all of this and I just thought it would be interesting to get your perspective on it. Flagrant’s comment opened up for it.
I agree that the Norwegian response was a more thoughtful one
Our response to 9/11 was to wage undeclared war on iraq and Afganistan, to increasingly take away privacy and personal freedoms in the name of security, to allow our military and intelligence agecies very wide laditude in how they operate both domestically and overseas, and to create a congress composed of jingoistic “patriots” who equate wearing a flag pin with true love of country.
Our response to the Oklahoma City bombing was to spend millions in increased security at federal buildings, and to continue to ignore the fact that all sorts of armaments and reactionary literature are easily obtained at gun shows.
So a respose of "We will continue to be an open society and we will not change our belief system because of the acts of a madman, seems a far wiser approach.
Timberwolves 2011:
Kahnceptual Performance Art
Putting one's head in the sand is never an effective strategy
Please tell me what Norway is doing to rebutt Shariah Law? Because I have seen the intel reports (it’s my business) and I can tell you that being tolerant of those who are intolerant won’t get you very far.
I've got good judgement from experience and experience from bad judgement.
Sure, right
just as soon as you show me what the U.S. government is doing to stop the spread of Tibetan shamanism in the United States.
In Norway, it’s not about Shariah, it’s about Zionism, and that’s a conversation I doubt you’d enjoy having with your average Norwegian, most of whom are thoroughly fed up with Israel.
Basketball is basketball. – Oscar Robinson
I've been to a tea party event
Asked one lady, who was holding an “Obama is the Antichrist” sign, ‘do you really think Obama is the Antichrist?’
“I don’t know, but I like saying it.”
She seemed nice, to be honest. If a bit ill-informed.
by googoleeoottooooleeoottooooleeeatta on Aug 2, 2011 3:34 PM CDT up reply actions
Compared to the "evil" Bush rallies
This seems pretty mild.
BTW which Tea Party event did you attend?
Dingus Kahn, it's over
April 15th, 2009. State Capital.
And no, that’s not mild. It’s flat-stupid.
by googoleeoottooooleeoottooooleeeatta on Aug 3, 2011 12:52 AM CDT up reply actions
Definitely mild compared to the "Tea Party = Facsism" meme that the Dems and Left-wing media used
Ignoring the obvious fact the Fascism is left whereas the Tea Party art center-right.
I've got good judgement from experience and experience from bad judgement.
There are fourteen defining characteristics of fascism
Fascism is slippery to define because the fascism is a chameleon that adopts local movements as their face, while steadily working to join corporate power with the government. Dr. Laurence Britt came up with these 14 common characteristics of fascism:
1. Nationalism
2. Disdain for human rights
3. Focus on enemies/scapegoats
4. Supremacy of the military
5. Rampant sexism
6. Controlled mass media
7. Obsession with national security
8. Religion and government intertwined
9. Corporate power is protected
10. Labor is suppressed
11. Disdain for intellectuals and the arts
12. Obsession with crime and punishment
13. Rampany cronyism and corruption
14. Fraudulent elections
Any of that sound familiar? Anyone who knows anything about the rise of the Nazi party will see how each of the 14 points applies to them, and I would submit that anyone who has studied the transformation of the American right from Goldwater conservatism to southern Democratic style demagoguery would see some similarities as well.
The important thing with fascism is that what they say often has little in common with what they do.
I look forward to seeing your list of how Obama’s policies conform with the defining characteristics of socialism.
Basketball is basketball. – Oscar Robinson
by TMiss on Aug 6, 2011 12:21 PM CDT up reply actions 1 recs
I have
And I didn’t find them that way at all. I found them opinionated and sincere, but uniquely unknowledgable about the actual structure and process of government (as opposed to generally unknowledgable, like most of the public) It was tunnel vision over a couple issues with little to no understanding about how such changes would affect the rest of the government or the country as a whole.
Sorry that I cannot reply as often as I would like
Let me put things in perspective. I am a Tea Partier. I belong to two local (near my home base) Tea Party groups and two nationally semi-organized groups. However, as you may know I am currently stationed in Suckistan. Many of the left-wing media (sorry for the redundancy) and liberal politicians (including the Vice-Prez Joe “The Gaffe” Biden) have referred to Tea Party people as terrorists. Do you agree with that characterization? Furthermore how do you think it makes me feel, a Tea Party member, fighting real terrorists (or jihadists if you prefer) to be referred to as a terrorist? This is rhetoric gone amok and offends a great many of us over here.
I've got good judgement from experience and experience from bad judgement.
by ArchAngel79 on Aug 6, 2011 4:09 AM CDT up reply actions 1 recs
To answer your question with a question
when’s the last time you took the economy of the United States hostage? or supported those who did?
That’s a pretty bright line.
I’m also noticing today that ALL the left wing media are talking about that helicopter crashing, but not saying it was shot down. That agree with the facts you hear in Afghanistan? Or are the “leftwing” media just parroting Petraeus’s talking points? Did we just lose troops to the incompetence of our mechanics, or were they shot down by the enemy? Our military leadership and the craven “leftwing” press seem to think it was our mechanics.
Basketball is basketball. – Oscar Robinson
Nevermind
Everyone’s on the same page now and yes, the Taliban shot down a helicopter full SEALS and other military personnel. Why we gave them the opportunity, I’ll never know. The chances of the Taliban ever shooting down one of our helicopters in the USA is about zero.
I hope you get home OK, and sooner would be better than later.
Basketball is basketball. – Oscar Robinson
Hear Hear
I think people would be pleasantly surprised if they endeavored to attend a Tea Party event.
Dingus Kahn, it's over
Like the one at the capital
when all the Republican bloggers went around pointing at the liberals in attendance to make sure no one talked to them? Yeah, my friends who attended with video cameras said it got a little tense.
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
by TMiss on Aug 2, 2011 9:08 PM CDT up reply actions 1 recs
please provide links with the video evidence
And I will provide links of left-wing protesters counter protesting at Tea Party events. I’ve had swear words hurled at me, leftists saying that they “wipe their ass with the American flag, and fuck America”.
Trust me, you don’t want to get into a video evidence fight on this. You will lose.
I've got good judgement from experience and experience from bad judgement.
Trust me
I’ve already seen your footage. Kenneth Gladney is a punk-assed whiner fake, and nothing on any video shows anything to the contrary. Ditto all the other so-called thuggery. Dude, you’re a soldier and you’re saying that you’ve seen violence in videotapes of scuffles at rallies?
Seriously?
Forget the weenie footage my friends have of people sticking their hands over their lenses, show me the violence you’re talking about.
Basketball is basketball. – Oscar Robinson
every family gathering is a Tea Party event for me
and every family gathering I have to explain to them that the electoral college does not maintain states equality…that’s the senate….sigh.
No one is getting Rubio's rights unless they pry them from our cold dead fingers.
by TheEvilProfessor on Aug 3, 2011 8:28 AM CDT up reply actions
And the Senate
is all about Senators from tiny states getting just as many votes as Senators from California and New York.
sigh
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
I would rather vote for an upturned broom with a bucket for a head than vote for Michelle Bachmann.
Follow me on Twitter @timallenonline
by TimAllen on Aug 2, 2011 3:32 PM CDT up reply actions 2 recs
Your new congresswoman for Minnesota's 6th Congressional District: Buckethead Wendy.

You were a daydreamer, a sass-mouth, and, not infrequently, a bit of a gigglepuss. Somehow I doubt twenty years of amphetamines and failure have done anything to improve that.
by Kevin Loves McHale's Navy on Aug 2, 2011 3:45 PM CDT up reply actions
The real question is
Does she want the mustache on or off?
"We must always seek the truth in our opponents' error and the error in our own truth." - RN
by nja700 on Aug 3, 2011 1:15 PM CDT up reply actions 1 recs
A Manufactured Crisis or Prelude of Things to Come?
America is living in a dreamworld. There is one issue that is so shocking and so amazing and yet it gets hardly any notice. Finally during this crisis it began to be discussed a little bit.
I have no greater love for Republicans than Democrats. Both sides hold equal responsibility on this issue.
We are on the verge of being financially insolvent as a nation. We are borrowing at out of control levels. This was the first of what I hope will be many battles to try to address this issue. Oceanary, help me understand your solution to this problem.
Last year our government spent $413 Billion in 2010 on interest alone. That is staggering.
According to the non partisan Congressional Budget Office our government has spent $8 trillion in debt since 1988. Some our biggest lenders are China and Japan.
At the current pace in 10 years our yearly interest payment will be $1.1 Trillion a Year.
At the current pace in 35 years every single dime of our federal budget will be spent on interest. That isn’t even paying off the debt.
Right now they talk about reducing the deficit, which is the amount additionally we are borrowing every year. There is zero discussion about reducing the debt itself.
Our country is facing foreclosure, this is not hyperbole, it is simple math.
A manufactured crisis? No I think this was more like a 10 day contract for a franchise that needs to be completely overhauled.
by Pistol-Pete on Aug 2, 2011 2:00 PM CDT reply actions 4 recs
Manufactured in the sense that the budget didn't need to be tied to the debt ceiling
Although I wholeheartedly agree that the budget needed to be addressed. This is a good first step. It’s just pathetic it was handled this way.
Manufactured also..
..Because WE CAN MAKE MORE MONEY.
Wanna pay it all off? Print off 10 trillion dollars and pay it all down. Not popular due to the inflation implications but it’s always an option.
But Congress and the President
would have just rubber stamped the debt ceiling increase (like they have in the past) if it wasn’t for a core group of members of Congress that used this vote as a way to hold everyone hostage, and rightfully so in my opinion. Pistol-Pete makes great points here. Both the GOP and Dems have been living in a dream world, as has the rest of the U.S. public. Do you actually think our members of Congress can self-regulate themselves? No way. The path of least resistance is to keep the spigot turned on and avoid the tough choices. The debt ceiling vote had to be the big stick here.
by Rascal Flatts on Aug 2, 2011 6:29 PM CDT up reply actions 2 recs
Obama absolutely manufactured this "crisis" as per usual
“If we don’t raise the debt ceiling we will default” LIE
“I cannot guarantee that social security checks and checks for our service members will go out. There may not be money in the coffers.” LIE
It’s incredible that most of the media never questioned these huge lies from Obama and the dems. It is encouraging that most Americans didn’t believe the fear-mongering either. Maybe we just got tired of it.
I've got good judgement from experience and experience from bad judgement.
In my opinion, coming out of this whole thing with no revenue increases
was a big mistake
Follow me on Twitter @timallenonline
by TimAllen on Aug 2, 2011 2:15 PM CDT up reply actions 4 recs
Let Bush's tax cuts expire...
….bring the troops home from Iraq, and roll the starting age of Social Security back to, say, 70, and I bet we’d save over $2 trillion over the next 6 years just from that
I understand why revenue increases needed to be left out to get enough support for passage. But I too feel it’s a mistake
Don't even raise the SS age.
Just means-test SS and Medicare, and they become solvent.
"Of what use is a philosopher who does not hurt anybody's feelings?" -Diogenes of Sinope
by Cynical Jason on Aug 2, 2011 3:34 PM CDT up reply actions
Here's an interesting thing that I don't think gets discussed enough:
Health care, as a product unto itself, is skyrocketing in cost. It is the single biggest driver of future cost estimates, both private and public. What will cost more: raising the age of Medicare and SSA and letting people go at it on their own or pooling broad resources? Regardless of ideology, I think we’ll eventually reach a point where the money aspects of the health care problem become too big to ignore without the largest possible insurance pool.
Also..
…I think we should have the debate about government vs. private costs with health care, especially for at risk populations (like the elderly). Yes, it costs buku dollars to have Medicare…it costs the government money. Is this a better and more desirable social cost than putting the burden on individuals? I think that is an interesting question that never really gets talked about in a fleshed out way that avoids boring talking points.
I think the "boring talking points" thing is a big issue.
It’s not sexy enough for a politician to sound-bite it into his platform, and it takes quite an effort to even be able to talk about it intelligently—effort that most of us either can’t or don’t care enough to commit.
But you’re right. One medical emergency can bankrupt a family if they have to go it alone, or even with moderate insurance. This is something that absolutely needs to be addressed, and I thought we were starting to get there with the Health Care act.
"Of what use is a philosopher who does not hurt anybody's feelings?" -Diogenes of Sinope
by Cynical Jason on Aug 2, 2011 5:01 PM CDT up reply actions
These are some fascinating problems...
….and there are some big-time trade offs between government and private costs and it would be nice if they could be explored in a way that emphasizes aggregate cost savings per capita instead of whatever it was we all argued about last year. We pay a ton for health care with diminishing outcomes (especially compared to our peers). Health care costs are skyrocketing. What do we do? I don’t think political ideology has an answer to that question. I think it is a matter better suited for actuary tables and basic math. How can we pay the least amount per capita? If that is a private solution, so be it. If not, let’s go there.
I have a hard time imagining
a private solution that doesn’t get hijacked by profiteering, but I’m with you. Use the most effective means to get the job done.
"Of what use is a philosopher who does not hurt anybody's feelings?" -Diogenes of Sinope
by Cynical Jason on Aug 2, 2011 5:11 PM CDT up reply actions
I think a hybrid system...
…could work. I just want a lower per capita cost with better health outcomes. That should be the driver of the debate, not political ideology. How can we have an average American that lives longer, has less cancer (and diabetes, heart disease, etc), receives less acute care, takes less medication and pays less for health care?
It may not be a hybrid type of system,
but one of more talked about portions of the Health Care Reform bill is the provision that establishes Accountable Care Organizations – in a nutshell, the government will provide bonuses and other incentives for these organizations to keep costs down for patients.
http://www.npr.org/2011/04/01/132937232/accountable-care-organizations-explained
I’m not totally sold that they’re going to work because depending on what the actual ACO payment structures are going to look like (something we don’t really know for sure yet), but at the very least the potential is there for something to push the incentives for each part of the health care system to drive costs down in the future.
by spiderinthesnow on Aug 2, 2011 10:48 PM CDT up reply actions
But you have hit on the real problem..
…Healthcare costs are skyrocketing. Yet all solutions are based on insurance. It simply should not cost $5000 to set a broken arm. I had surgery on my back earlier this year, between the MRI’s and the day-surgery the total was better than $30k.
The profiteering in the medical field is insane. Insurance just masks it. Not to say I know the solution, but I don’t understand why people keep going after insurance when the issue is the cost of care.
All solutions aren't based on insurance
You can go to a tax-based model. I’m not advocating one thing over another here; rather, just saying that it doesn’t have to be solely insurance-based. At least not profit insurance based.
In most markets you have a non-profit health plan. Many BCBS organizations, to start with.
by Punisher#8 on Aug 2, 2011 7:14 PM CDT via mobile up reply actions
You're missing the point of why healthcare is so expensive
Insurance. Private insurance carriers pay people to deny claims, creating extra paperwork and driving up medical costs. Medicare is the most efficient insurance available to Americans, private insurance is — without exception — the worst option aside from no insurance at all.
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
Hmmm...
I agree that health insurance companies are guilty of a great many evils, but can you point to data showing that they are driving the costs in the medical industry? I would guess they are just one among many factors, including the shameless profiteering by pharmaceutical companies, the artificially restricted supply of doctors, the rising costs of malpractice, and so on.
Note: I am explicitly not disagreeing with you; I’m professing ignorance on the numbers and asking you for data that support your claim.
Most of my information comes from health care workers
whose resumes I’ve prepared. From doctors on down to clerical staff, medical professionals are going nuts trying to comply with the enormous amount of paperwork demanded by private insurers. The insurers demand a lot of paperwork because the longer they can hang on to your premium money before cutting a check, the more money they make.
Here in the Twin Cities, UnitedHealth Group is making record profits by coaching other insurance companies on how to slow down their payments to healthcare providers. It’s literally a racket.
Currently 7% of all medical costs are consumed by administrative costs, mostly filling out insurance papers. Medicare, by contrast, delivers benefits with only a 2% administrative cost. The private sector literally takes over three times as much to process healthcare claims as the notoriously “inefficient” federal government. These numbers are also true of European health care costs, which are more like Medicare than private insurers, even though a lot of Europeans have private insurance (theirs, however, is tightly regulated).
Private insurance also drives bad medical decisions, fighting doctors over the care they can give patients. Private insurance is literally like a death panel where non-medical personnel make life and death decisions based on costs, and not outcomes.
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
Anecdotal evidence...
My wife had an accident, scarred her face. She called around to a few plastic /restorative surgeons. We were willing to pay cash, but anyway…
First thing they ask is about insurance. The office of the most esteemed plastic surgeon in the area said: “You know, we do not take insurance.”
My wife said: “I figured that, and we are on medicare anyway.”
Office person said: “Oh, that’s the only one we do take.”
Bottom line, with Medicare, they have online access, can put in forms easily, and the doctor gets paid very fast, no questions. WIth any other insurance, the doctors have to employ people to chase the insurance companies — about disallowed claims, or claims that are allowed but not paid, and so on. It costs the Drs a ton of money to deal with most insurance companies.
My daughter in law is a nurse, she says the same thing. Medicare is best in terms of ease to do business with — they don’t pay the most, but many Drs are seeing the benefits of lower costs to do business with and like working with Medicare.
So for all the free market advocates out there, how do you explain that? It is the opposite of what the free marketers preach. The govt is more efficient than private insurers, hands down.
Another set of anecdotes: In my working career, I’ve lived in Sweden, London and Belgium, a total of 10 years spread among those countries. The medical care is at least as good in those places, the costs are much lower, and stats show that outcomes are much superior than the USA.
As a retiree, we live in Mexico 6 months out of the year, so we have experience there as well, in a town where a lot of retirees live, including retired doctors, nurses and hospital administrators. We know a Dr who had a heart problem, he credits the MExican Dr with saving his life — the guy drove our friend to the hospital himself and got him stents.
We know 2 different Hospital administrators, retired, who have had stents done in Mexico. They rave about the Mexican hospitals, they said it was like the US hospitals back when they started their careers — nurses were more competent, gave more attention etc etc.
And costs are a fraction of those in the USA — the Drs in our city are trained in the USA, the majority anyway, med school graduates fluent in English.
It pays to question assumptions, particularly the brand of BS that is spread by Chicago School Economics advocates. It is a cult belief, with no evidence backing it up. Adam Smith stated that without regulation, capitalism will degrade to what we have now, crony capitalism where the rich & powerful are looking out for themselves rather than the common good.
by timmuggs on Aug 2, 2011 6:04 PM CDT up reply actions 2 recs
My wife has worked as a social worker for nursing homes for years. Her observation is that the rules (what Medicare does/doesn’t pay for) are not easy to understand for patients. Most homes have to hire a full time nurse to explain this to patients – the Feds outsourcing in and getting to that 2%.
This may just be LT/ST care. I am in my 30s so haven’t been personally exposed to Medicare.
by Punisher#8 on Aug 2, 2011 7:18 PM CDT via mobile up reply actions
It's not just insurance.
Every part of the health care system contributes to the costs of health care in some way or another.
For one thing, doctors and hospitals do not have an incentive to keep costs down. Most insurance (including Medicare) works on a fee-for-service system, where any given procedure or service will have a fixed cost that is paid to the provider. That will often times lead to the doctors erring on the side of ordering more services for their patients, regardless of whether or not they’re needed, because why the hell not? The hospital or practice gets more money, the patient gets more care, everyone’s happy…except the insurance company, who actually has to bear the brunt for all the services rendered.
Health insurance companies also maintain profit margins that are a lot lower on average than most other industries. They’re still private enterprises in competition with each other for business, so it’s not like they’re raising prices for the hell of it – usually they have to do it because health care costs are too expensive for them not to.
Now, I’m not saying that insurance companies are absolved of blame – I’m telling you this as someone who works in the health insurance industry, we are definitely not. The whole industry has a disincentive to provide care because otherwise the risk exposure becomes too great, especially considering health insurance companies operate with a thinner margin of profit than in most other industries and the fact that the incentive on the provider end is the exact opposite of what the insurance company would want to have.
I really think that the health care reform bill is a good start towards moving the system back towards sustainability. It’s not perfect, by any means, but from what I’ve read it seems like it will make a positive impact on costs in all parts of the health care system.
by spiderinthesnow on Aug 2, 2011 11:32 PM CDT up reply actions
insurance companies in general get to operate with smaller profit margins
due in part to their preferred tax status. Insurance companies as a whole also use re-insurance companies to spread their risk around globally to give them a higher level of cost certainty than most other industries. Re-insurance is not available for a manufacturing company…but it is for insurance companies.
No one is getting Rubio's rights unless they pry them from our cold dead fingers.
by TheEvilProfessor on Aug 3, 2011 8:36 AM CDT up reply actions
I'm a big believer in attacking health care costs themselves
Rather than the coverage for said costs. Bring the cost of the care itself down, and the coverage costs will naturally follow
absolutely
No one is getting Rubio's rights unless they pry them from our cold dead fingers.
by TheEvilProfessor on Aug 3, 2011 8:36 AM CDT up reply actions
I get the intellectual argument for single payer. But if we go there, the first move is cigarettes are illegal, the second is fast food is done, and so on. If you are paying your own way, go ahead and have freedom of choice. If we are all paying your way, not so much.
I don’t actually want to see this happen, but a good portion of U.S. health costs are self-inflicted.
by Punisher#8 on Aug 2, 2011 7:12 PM CDT via mobile up reply actions
Replace "done" with "heavily taxed" and I think that's where we'll eventually end up
Smokes and fast food cause disease. At some point I think costs will rise to make us take a more direct approach for paying for other peoples’ poor health choices. We already pay for them with sub optimal cost structures (ER visits, govt taking at risk populations while insurers get young and healthy workers, etc). It costs a lot of time, money and enegy to make and maintain unhealthy people and we’re already paying for them in a very disorganized way.
Right, and a further step is acknowledging that we are paying for them today via Medicare and Medicaid and asking more of our fellow citizens to be considerate with how they take care of themselves. When you start to dive past the Republican/Democratic distractions on the topic, the practice here is pretty ugly.
what I wouldn't give to not even have to deal with those distractions ever again.
No one is getting Rubio's rights unless they pry them from our cold dead fingers.
by TheEvilProfessor on Aug 3, 2011 8:38 AM CDT up reply actions
A big stretch to say that fast food and cigarettes are done
No valid background to draw that conclusion, IMHO. You can buy both in Sweden, for example, and if that is the way we are headed, no problem. You are inventing (or repeating) scare messages.
In the European countries, the most ‘socialistic’, no one has done away with cigarettes or MacDonalds.
It is true that there are more obese people in the USA than in virtually all Euro countries, just walking down the street makes that obvious. But there are also programs in schools in France, Sweden & elsewhere on nutrition.
There is also a very strong argument made that cigarettes reduce healthcare costs — smokers die earlier, saving a tremendous amount that would be otherwise spent in elder care.
We have to do things about health care costs, but eliminating the reasons why people die young is not particularly productive in that respect.
by timmuggs on Aug 2, 2011 8:39 PM CDT up reply actions 1 recs
Cigarettes and fast food in Norway
Cigarettes: Heavily taxed. 20 cigarettes costs around $18. It is also illegal to smoke inside restaurants, bars, working places and indoor public areas.
The debate is now turning towards taxing sugar and unhealthy foods.
I wrote this quickly while working in the backyard, apologies if I was unclear.
You have a signficant portion of healthcare costs that are preventable – weight/diet, smoking, adherence to doctors’ orders. Changing how healthcare is paid for does not change what is changeable here. There have to be incentives (or directives) for people to comply.
The European countries and the U.S. also have different demographics. To think that we will be Sweden here is making a large assumption.
You and your evidence-based, real-world, pragmatic conservatism
We have a word for that kind of conservative in this country: socialist. Don’t worry if it doesn’t make sense. None of our epithets really make much coherent sense anymore.
"We must always seek the truth in our opponents' error and the error in our own truth." - RN
Punisher#8
can you name one single thing liberals have ever banned? I’ve been thinking about that one for days, and haven’t come up with anything yet. Taxed, yes. Banned?
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
This is where I think things would end up needing to go in the U.S. if we moved to single-payer, not what I believe a liberal or conservative would do. There are many health costs that are not controllable, but Rx overprescription and the aspects that are controllable (weight/diet, smoking, adherence to doctors’ orders) are signficant.
NHS
Here’s something else to consider. ObamaCare was patterned after the NHS in the UK. Last week it was revealed that all surgeries are rationed. The choice for needy patients was to die first or seek private care.
I’m no fan of the current insurance ran system, but injecting a DC based panel of bureaucrats with the IPAB making cost-based eligibility decisions is yet another step further removed from the physician-patient relationship.
Moreover, we now find out that instead of “bending the cost curve” Obamacare will be cost additive.
Dingus Kahn, it's over
We must accept the fact that healthcare will be rationed
Why should I, as a taxpayer, pay for an 89 year old woman to have heart bypass surgery?
At some point, we have to say “Let God take them”
I am surprised at the number of people who raise this as an objection, as though it is society’s responsibility to extend everyone’s life beyond their sell-by date.
The people that profit from this are those who sell medical services, and insurance companies that can bill taxpayers multiple hundreds of thousands of dollars for life-extending procedures that do nothing to improve quality of life, but only extend a burden on society.
If rich guys can pay for these kinds of procedures, let them do so. Don’t ask me to pay for great gramma’s operation so che can maybe make it to another birthday, in a coma.
I've always wondered if there is a "ration ratio" that compares....
….care rationed by government boards to care rationed by private bean counters.
Rationing healthcare....
And this comment by Tmuggs is just freaking scary.
"But this one goes to eleven..."
by kingsxman on Aug 3, 2011 1:31 AM CDT up reply actions 1 recs
just don't look at an actuary table
They’re frickin horrifying.
by Stop-n-Pop on Aug 3, 2011 5:22 AM CDT via mobile up reply actions
the following is a plainly false statement
Here’s something else to consider. ObamaCare was patterned after the NHS in the UK.
To type it is to reveal your utter ignorance of the issues at hand
you mean to tell me...
…That Boston is not in England!? Good day, sir. I said, good day!
by Stop-n-Pop on Aug 3, 2011 5:20 AM CDT via mobile up reply actions
And the Wolves offense was patterned after the Jordan Bulls and ShaqKobe Lakers...
Even if it’s even partially true (which I’d debate), results matter as much as process.
The good news is hopeful doesn't mean dumb. The bad news is cynical doesn't mean smart. -- Sarah Silverman
by pagingstanleyroberts on Aug 3, 2011 2:21 PM CDT up reply actions
Just want to clarify your post on means-testing of SS and Medicare
“Responsible” people save for retirement by saving 6-10% of their salary in their 401K and company match starting in their early 20’s. They also pay SS and Medicare taxes at about the same rate (7.65% of their income, matched by their employers). These responsible people will have a sizeable nest egg at retirement. Did you want to substantially reduce their SS and Medicare to support those who haven’t saved?
by ThisIsForSota on Aug 3, 2011 8:39 AM CDT up reply actions
Bush Tax Cuts Will Expire
The media keeps saying there will be “no new revenue”, but the Bush tax cuts expire on 12/31/12 and this is supposed to generate $4.5 trillion over ten years. So what the media says is not very informative.
By the way, the Bush tax cuts would have expired on 12/31/10 but in December, 2010 the Democrat Congress and Obama extended them for two years.
by Beancounter CPA on Aug 2, 2011 4:17 PM CDT up reply actions
Ignoring the obvious "Democrat Congress" dog whistle,
I’ll just claim that what you’ve said here doesn’t tell the whole story.
Obama and the democrats wanted to extend the tax cuts for everyone but the wealthiest of the wealthy, but—again—the repubs held the motion hostage. They wouldn’t approve the extension unless it included everyone.
Since the middle- and lower-classes are in real trouble, Obama and the dems didn’t want to hurt them worse, so they caved and gave the repubs what they wanted. The end result? The people who needed the help got the help, the people who don’t need it at all kept their windfall, and (because the republicans are children) we missed another opportunity to address financial issues without further damaging the un-wealthy 99% of the country.
"Of what use is a philosopher who does not hurt anybody's feelings?" -Diogenes of Sinope
by Cynical Jason on Aug 2, 2011 4:24 PM CDT up reply actions 3 recs
So the Bush tax cuts were good
So you are saying that the Bush tax cuts were good because they took so many people off the tax rolls.
by Beancounter CPA on Aug 2, 2011 4:44 PM CDT up reply actions
No
I think Jason was saying that George Bush was caught on video eating his own boogers at Rangers games, and that Anthony Scalia gave him a social promotion and made him President.
Sorry, that has nothing to do with what Jason said, but neither does your nyah-nyah comment.
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
I think he's saying:
When the economy is completely cratering, it’s not a good time to have the government tighten up revenue. And that the only way to extend the cuts for anyone who needs it was to make sure that those that don’t continued to get tons of money. And if that’s not what Cynical Jason meant, that was what this Jason meant. Personally, I thought the Bush tax cuts were a terrible, no good idea.
But when the economy craters
almost every sane economist out there will tell you that government spending has to go up to avoid a depression
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
Well, I'm a bad judge of economist sanity
But yep, Keynes and Krugman is good enough for me.
Obama and the democrats really didn't want to raise taxes on the rich
When Obama was elected, both houses were also controlled by the democrats. They had two years to raise taxes on the rich, but didn’t, because they didn’t want to deal with the political fall-out.
If you want to raise taxes on the rich, do it as soon as you get elected. That is what Clinton did.
by ThisIsForSota on Aug 3, 2011 8:44 AM CDT up reply actions
The difference being
that when Clinton was president the GOP hadn’t yet devised the strategy of permanent filibuster. Since the dems only had 59 senators in 2008 they couldn’t supersede a filibuster, creating the need for a “supermajority” to pass legislation (you must have heard this once or twice in the past few years).
You could argue that the supermajority problem was fabricated, and since it was never tested it was just an excuse, but to say that definitively you’d need to claim more insider knowledge than I’ll ever have.
"Of what use is a philosopher who does not hurt anybody's feelings?" -Diogenes of Sinope
by Cynical Jason on Aug 3, 2011 9:34 AM CDT up reply actions
Politicians didn't know how to filibuster in the 90's?
Really?
Obama was able to get universal health care passed. Passing a minor tax increase on the rich is much, much easier. Blaming a filibuster is a lame excuse, the democrats didn’t have the fortitude because they were worried about the political fall-out.
by ThisIsForSota on Aug 3, 2011 10:08 PM CDT up reply actions
Republican filibustering is at unprecedented levels
From 2007-2010, they were using the filibuster at twice the rate of the so-called “obstructionist” Daschle-led Senate early in G.W. Bush’s term.
http://www.senate.gov/pagelayout/reference/cloture_motions/clotureCounts.htm
Like Krugman said
“Filibustering is a great strategy” when the Dems were in the minority. Of course when the Repubs did it, Krugman had a MUCH different take on filibustering. Yet, there are some who like to sight Krugman for his economic chops, instead of seeing him as merely an ideological lap dog of the far-left (which he is).
I've got good judgement from experience and experience from bad judgement.
I feel for you.
Anyone that sure that his perspective completely lines up with reality, and his opponents are either stupid or intentionally misrepresenting the truth, is setting himself up for disappointment. You’re frothing at the mouth now, but just wait until you’re back among civilians and you have to deal with other perspectives all the time.
Get your rabies treated. You’ll be better off for it in the long run.
"Of what use is a philosopher who does not hurt anybody's feelings?" -Diogenes of Sinope
by Cynical Jason on Aug 6, 2011 12:55 PM CDT up reply actions 1 recs
But, but, but...
What we need now is to cut spending and if at all possible and give the wealthy out there even more money in their pockets so they can start creating the jobs they are not now creating. If we do this long enough it is bound to work. (Or, more likely, bankrupt us.)
Revenue increases...
…are fine, but first and foremost the tax code needs to be simplified and understandable. It needs to be flatter with limited or no deductions (a rate schedule that is progressive by income is fine).
Until Congress stops spending via the tax code and picking winners via the tax code, it will be tough to get this under control. It’s not going nearly far enough to touch this around the margins with entities that are political enemies or otherwise easy targets (oil companies, corporate jet users). I’ll volunteer – why should renting tax payers subsidize my choice to buy my home with a mortgage?
starting with the fact that long term capital gains from investing are only taxed at 15%
which is largely why Buffett pays a lower effective rate than most of the posters on this site.
No one is getting Rubio's rights unless they pry them from our cold dead fingers.
by TheEvilProfessor on Aug 2, 2011 3:09 PM CDT up reply actions
Lower Capital Gain taxes result in higher revenue
Every time capital gain tax rates have been lowered it has resulted in higher taxes collected. This is because you don’t have to pay the tax unless you sell the investment and realize the gain. When the rates are lower, there is more selling of investments and thus more income to tax. When the rates are high, there is less selling and less income to tax. History has shown this to be true.
As for Buffett, most of his wealth is from his ownership of Berkshire Hathaway. He has never sold any of his shares so he has never paid any capital gain tax on them. Also, he will leave almost all his wealth to charity so there won’t be any estate taxes either.
by Beancounter CPA on Aug 2, 2011 4:10 PM CDT up reply actions
"Every time capital gain tax rates have been lowered it has resulted in higher taxes collected"
You’re confusing “correlation” and “causation,” Mr. Laffer.
This account is to be used solely for recommending sbjake's Fan Posts.
Please give us some URLS
that show the actual numbers on that because I do not believe what you are saying is true. I do believe many on the right believe in napkin economics, but belief ≠ truth.
History has show your beliefs to be false, and George Bush’s tax cuts are the proof of that because they are the single largest reason why we’re running massive deficits.
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
The Bush tax cuts were supposed to be stimulative
Where is the evidence? It points in the opposite direction.
WHat were tax rates when Gates started Microsoft? Up to 75%. What about when Hewlett & Packard started HP? Up to 90%.
In theory, those businesses would never have started. In practice, they were, along with many other successful businesses.
Question assumptions.
Sure, it works in practice
But does it work in theory?
"We must always seek the truth in our opponents' error and the error in our own truth." - RN
+1,000,000
This is the only hope I hold out from the Special Committee. They have to do this. I’ve actually heard this sentiment on both liberal and conservative radio, too, so I thinks it’s possible.
It’s the definition of fairness. We will all know that everyone has skin in the game and isn’t dodging taxes through breaks and loopholes. The IRS could be reduced. Maybe some of the power of lobbyists could be reduced a bit. And according to Simpson-Bowles, it will raise revenue while lowering rates.
It’s impossible to get the deficit under control with cuts only. We have to inject revenues in a fair way. This could be a win-win.
We’ll see which side balks. Will the TP and repubs fight it to save breaks for the “job-creators” and to starve the gov’t? Will the Dems insist on protecting breaks/deductions for low-to-mid income folks? I agree it has to be progressive by income. That should be enough.
by ChicagoViking on Aug 2, 2011 4:24 PM CDT up reply actions
Absolutely
Reduce rates, increase the tax base. Simplify. I have heard both dems and repubs also advocate for this. I think where the difference lies is in the net result. Dems will want to ensure this results in more revenues, whereas repubs will want to lower the tax rates enough to make up for the increased tax base. Either way, it’s still a more efficient tax code, but the devil will be in the details.
by Rascal Flatts on Aug 2, 2011 6:37 PM CDT up reply actions
"Until Congress stops spending via the tax code and picking winners via the tax code"
If this were to happen, Congress would have nothing else to do. As desirable as that might be, don’t look for them to self-immolate any time soon.
This account is to be used solely for recommending sbjake's Fan Posts.
What about industry lobbyists
Do they favor simplifying the tax code?
They’d be out of work, most of them. Putting breaks into the code is their bread & butter.
I would not wait on tax code simplification, too much money, and too many campaign contributions, are stacked against it.
All the more reason. Best way to neutralize the lobbyists and special interests on both sides.
by Punisher#8 on Aug 2, 2011 7:22 PM CDT via mobile up reply actions
And all the more reason why it will not be done
My issue is that people will say: Don’t raise taxes, we have to redo the tax code.
It’s just another stalling tactic, and we don’t have time for it.
“The perfect is the enemy of the good.”
But the problem
is the tax code has so many holes in it that raising rates does not guarantee more revenue. In fact, it could lead to less revenue. It feels good to folks who want to stick it to the rich, but the truly wealthy folks will use the existing tax code and a good accountant to work around it for the most part.
by Rascal Flatts on Aug 2, 2011 10:14 PM CDT up reply actions
Exactly
But the lobbyists will continue to push to keep tax loopholes open for their companies, and the rich people with resources will find every way not to pay taxes that’s within legal limits.
I bet with a flat tax with minimal deductions the rich would actually pay more than they do now, even if the supposed rate is lower.
Gotta simplify it. Not to mention it would reduce the associated admin costs.
Not only will many of the rich pay more
but so will many in the middle and lower middle class. Everyone needs skin in the game and the fact is there are many folks who aren’t wealthy that pay zero taxes.
by Rascal Flatts on Aug 3, 2011 9:10 AM CDT up reply actions
The "skin in the game" idea is cute,
but when acquiring that “skin” causes some to bleed to death it’s a bad idea. I think someone at the poverty level would prefer to feed the family than have “skin in the game.”
"Of what use is a philosopher who does not hurt anybody's feelings?" -Diogenes of Sinope
by Cynical Jason on Aug 3, 2011 9:36 AM CDT up reply actions
Obviously
What I said is that people who are middle and lower middle class will also end up paying more in taxes if indeed we move to a simplified tax code that removes most of the existing credits and exemptions. It’s not just the wealthy that benefits from these exemptions.
by Rascal Flatts on Aug 3, 2011 10:38 AM CDT up reply actions
I would be in favor of something like
a flat tax after 30,000, with deductions for kids. No one’s skinned to death, and it’s simple.
Everyone pays taxes
If you earn any income, you pay social security taxes, medicare taxes, sales tax, gas tax, etc. The list goes on and on.
by ThisIsForSota on Aug 3, 2011 10:09 PM CDT up reply actions
Right
Whistles should go off when people just focus on marginal income rates. The effective overallmrate has flattened over the past few years with disastrous results. Here’s one thing I would be in favor of: a national sales tax (with a credit for lower rates) and unemployment insurance reform that encourages hours/jobs sharing with lower bennies so people don’t have to be completely laid off.
With the credit for lower rates
This needs to be done in a quarterly way or even more spread out. WARNING ANECDOTAL EVIDENCE I work in electronics in one of the less affluent areas of the twin cities. When January, February and March role around. Lower income people are swarming in to get new big screen TVs, Xboxes, etc. I’m sure that not everyone is doing this, but the credits are not helping these people pay the bills, rather it is paying for toys.
I'm Trill, I'm running w/ the WOLVES
by running with Twolves (and scissors) on Aug 7, 2011 1:57 AM CDT up reply actions
I'm no expert,
but this helped me understand some of my less-well-off students.
I guarantee you don’t get it until you read this or something like it.
"Of what use is a philosopher who does not hurt anybody's feelings?" -Diogenes of Sinope
by Cynical Jason on Aug 7, 2011 2:26 AM CDT up reply actions
(reading the reviews) it looks like some loved it and some hated it.
As a future teacher I would love to be more educated on the topic. Thanks for the recommendation! My point was that in some of the cases that I have witnessed the credits would not help the people pay the bills and deal with the higher sales tax. Instead they would just get new toys. The question would be what is the point of said credit? If it is to get the economy going like a stimulus than it is working, but if it for the benefit of those who are less fortunate than us, it may not be helping. I want to make the point that in no way am I trying to look down on them or anything like that. I just want my future students to have the best life they can have at home.
I'm Trill, I'm running w/ the WOLVES
by running with Twolves (and scissors) on Aug 8, 2011 12:11 PM CDT up reply actions
Credits are problematic on a number of fronts for low income earners
Let’s say you offer a credit for energy efficient windows. Not many people have enough up-front cash to go to Home Depot and get the windows and then wait for the credit. It would me much more sensical to allow the purchase to be made against the home’s utility bill and paid down with a government-backed 1 time payment and then paid back with an increase in monthly payments. I’ll never get why this sort of approach isn’t expanded. Hell, take every underwater house in the country and throw $50k at the principal as a government backed no interest loan. Everybody has their monthly payments lowered and the government gets paid back when the house is sold.
+1
There may be some emotional satisfaction in raising the marginal rates, but effective rates are what matters. Eliminate deductions and credits and revenue will go up. Then you can better take a look at where marginal rates should be.
It was republicans as hostage-takers.
I recommend this.
"Of what use is a philosopher who does not hurt anybody's feelings?" -Diogenes of Sinope
by Cynical Jason on Aug 2, 2011 3:36 PM CDT up reply actions 1 recs
Reced for totally biased reporting of controversial material
Although unlike Faux News no one had to wiretap, bribe, and otherwise circuvent the law in order to get the story!
Timberwolves 2011:
Kahnceptual Performance Art
Yeah,
I almost lost my mind in the few seconds she was speaking. But the rest was worth it.
"Of what use is a philosopher who does not hurt anybody's feelings?" -Diogenes of Sinope
by Cynical Jason on Aug 3, 2011 1:37 AM CDT up reply actions
China and Japan?
China owns 8% of treasury securities. I’m not saying it’s a good thing, but we own 2/3 or our own debt. The SSA trust fund owns more securities than China and Japan combined. US households own more than Japan and the Fed has more than China.
Just out of curiosity
How much tax do you guys pay?
If you could give me an approximate percentage, that would be great.
In Norway we pay approximately 30 to 33% income tax.
We also pay about 33% of our income in taxes
As a very rough estimate, gross national income is about $15 Trillion, give or take. The federal government takes in about $2.5 Trillion in taxes, and the states also take in about $2.5 Trillion.
by ThisIsForSota on Aug 3, 2011 8:28 AM CDT up reply actions
please note that he mentioned income tax...not percentage of their total income that gets taxed
no one in the US pays an effective income tax rate of 33%, let alone on average.
No one is getting Rubio's rights unless they pry them from our cold dead fingers.
by TheEvilProfessor on Aug 3, 2011 9:13 AM CDT up reply actions
Highest rate is 35% in the USA
Regardless, in order to calculate taxes on income, you have to include FICA withdrawals. They are an income tax, and a highly regressive one.
We hear rightwingers saying that half the people in the USA pay no income tax.
Not true, if you count FICA withdrawals.
"How much tax do you guys pay?"
That was the question.
by ThisIsForSota on Aug 3, 2011 10:11 PM CDT up reply actions
we pay less overall
I would say average income tax is about 20% effective and then we have our sales taxes, property taxes, various fees for our automobiles etc and bring the total average tax up to about 30% or so total. The effective rate varies wildly by taxpayer.
No one is getting Rubio's rights unless they pry them from our cold dead fingers.
by TheEvilProfessor on Aug 3, 2011 8:51 AM CDT up reply actions
Clarification
Our income tax is sitting approximately around 30 to 33%
In addition we have a lot of other taxes and fees.
For instance:
Tax on buying property (2,5% of total cost)
Tax on stock profit (28%)
Tax on accumulated wealth (28%)
Tax on inheritance
Car fees
County fees
Tv fee
Etc
Effectively brings it up to around 40%
We pay a lot of taxes. Not everything is rosy over here.
We make billions from oil. Still we keep our taxes really high, and saves the oil-money for the future.
My grandparents were Norwegians
so can move “back” and get a cut of that oil money? I’d fit right in, blond hair and everything. (I’d need to work on the language and a desire to eat smoked salmon and lutefisk.)
I'm no economist but
on the micro-level at which I can try to correlate this with my own finances, the first thing most every financial counselor will tell you to do when you are getting up to your ears in debt is to cut up your credit cards and stop spending. You cannot spend it if you don’t have it.
Most of the time you don’t hear step #1 as “go make more money”, it is always stop spending first, then look for ways that you can augment your income.
There are three very real caveats to this when trying to apply this on a macro scale
1) Natural Disasters
2) War
3) The ripple effects of changing the course of something as large as our government too quickly would be far more damaging.
I know this isn’t a perfect deal, but I think it was clear from both sides they each had to give ground. I’m glad there is more attention on this and the financial health of our nation. While I certainly can’t agree with the tactics involved, I do hope the Tea Party keeps shouting loud enough that the moderates now take the initiative and move toward a long term plan vs. letting the government get into a situation where they are held captive by ideals on both sides of the aisle that won’t allow an agreement to get done until the 11th hour.
Both sides mush realize the log-term effects of their decisions for things like War (Bush era), Stimulus (Bush & Obama eras), and Medicare overhaul (Obama era).
Now will you all please raise your right hand ... and place the paper bag over your head.
by Cedarpenguin on Aug 2, 2011 3:10 PM CDT reply actions 1 recs
You forgot Medicare drug program (Bush era)
And you forgot Homeland Security beaurocracy (Bush era)
The tea party
has absolutely added value. They are the ones that raised the red flag and changed the debate in Washington. I don’t think their influence will be long-lived. They will eventually fade from the spotlight, but in this moment of history, they have played an important role in calling attention to the debt issue and changing the trajectory of the dialogue in Washington.
by Rascal Flatts on Aug 2, 2011 6:41 PM CDT up reply actions
Is this true?
It seems like they have been the primary obstacle to a balanced revenue/cut approach that the majority of the country prefers.
How are they an obstacle?
They don’t cast votes in Congress. I just think they brought the debt issue into focus and a massive part of this is government spending. I do think some of the House GOPers need to get real eventually about giving up a little on the tax revenues issue, but they are absolutely right to first demand spending restraint, as we have seen time and time again that Congress doesn’t have the discipline to be a responsible steward of more revenues. More revenues usually = more spending….by both parties.
by Rascal Flatts on Aug 2, 2011 9:53 PM CDT up reply actions
They actually do cast votes in congress
Here’s a list of the current members of the Tea Party caucus. Here’s how they break down by region:

Here’s an academic paper that builds on the regional breakdown of the party.
While less than one in five (19.4%) minority non-Southerners and about 36% of Anglo non-Southerners report supporting the movement, almost half of white Southerners (47.1%) express support….
In fact, the role that antigovernment sentiment in the South plays in Tea Party movement support is the strongest in our analysis.
Here’s the abstract:
The Tea Party movement has gained much support and media attention over the past several years.
Debate rages, however, about the sources of support for the movement. Some argue that supporters are
drawn to the movement by concerns about the state of the U.S. economy. Others believe the movement
attracts those who are most disgruntled with the size and direction of the national government. Further,
charges of racism and anti-immigrant attitudes among movement supporters continue to arise. Finally,
some wonder what role moral issues that have been so prominent in national politics for more than a
decade play in this movement, if any. We believe that much of this debate results from the varied
attraction of the Tea Party movement across the nation. While supporters in one region might be drawn to
the Tea Party by economic or size of government concerns, supporters in other areas are likely drawn to
the movement by concerns more particular to their region.
Using data from a June, 2010, nationwide USA Today/Gallup Poll, we investigate the sources of Tea
Party support, with a particular eye toward whether the basis of support varies by geographic region. We
find that traditional, moral values play no role in increasing support for the movement, further
substantiating claims that the movement formed in reaction to the Republican Party’s shift toward its neoconservative wing over the past three decades. Counter to much popular sentiment, we find that racism
plays no role in movement support either. Though Tea Party supporters are more likely to be white
Southerners and to express more racist attitudes, these attitudes do not appear to cause a person to support
the movement. We do find that economic concerns, anti-government sentiment, and views about illegal
immigration play important, but varied roles in movement support across the nation. Viewing illegal
immigration as a threat to the nation increases support for the Tea Party movement, but only in the West.
Economic concerns are the key factor increasing movement support in the East, while anti-government
sentiment boosts support in the Midwest and both play key roles in the South where anti-government
sentiment drives support more than economic concerns.
In other words, we’ve seen this party before and they are not a bolt out of the blue; rather, they are saying the same things this particular constituency have always said. Hardly a group that brings something newly into focus.
Here’s what I find incredibly disjointed about your statement. You applaud the Tea Party for making an issue of government spending and then in the next sentence say that you think House GOPers need to get real about giving up a little on tax revenues. That’s not going to happen with the Tea Party increasing in both numbers and influence. That is oil and water and why I said that they seem to be the primary obstacle to a balanced approach. President Obama’s original grand bargain was something like 87/13 split between cuts and revenue increases/loophole closures. That couldn’t even pass muster and it seems that one of the reasons it could not was because of pressure from either the Tea Party caucus or House GOP members whose voting record, public statements, policy history and overall worldview just happen to line up with their Tea Party peers. (BTW: This is another argument altogether: How exactly is a group driven by long-standing GOP policy and that was originally backed by Dick Armey and the same dollars that back GOP/conservative candidates something new altogether?)
by Stop-n-Pop on Aug 5, 2011 9:07 AM CDT up reply actions 1 recs
The Tea Party is not a group driven by long standing GOP policy
I’m sure you have at some point mentioned the Bush spending increases (not a Tea Party position) as things you don’t like, as well as getting entangled in foreign wars ( most Tea Partiers are against). You claim the Tea Party movement was originally backed by Dick Armey (provably false. Dick Armey helped back one of the nationally semi-organized Tea Party groups “Freedomworks”, not the Tea Party movement as a whole). All this goes to my fundamental point; most of those who attack the Tea Party movement, know next to nothing about the Tea Party. The haters of the Tea Party are usually big government, progressive/socialist/liberals who are scared of a semi organized limited government, constitutionalist movement. Hence that movement most be full of stupid, racist, violent, extremist terrorists. Wait did I miss a label that leftists try to use to marginalize us?
I've got good judgement from experience and experience from bad judgement.
Very conflicted about all this
I’ve been glued to CNN for the last week, as the wifey and I are trying to get into our first house, which really depends on mortgage interest rates not spiking over the next 30 days. So part of me just wanted to see a deal, any deal. And that part of me (which seems to be a selfish ass) is pretty pleased that it now looks like we’ll be able to lock up that 4.25% rate for the next 30 years, and even if economic apocalypse / hyperinflation is still imminent, we’ve got a floating piece of timber to cling to.
But otherwise I’m pretty angry. At the Dems for not taking spending cuts seriously until Cantor, et al, held a gun to their heads. At the Republicans for turning down deeper cuts Obama offered just because of the (relatively small) tax increases attached. And at the TPers for dousing our economy with gasoline and lighting their torches. I’m actually pretty okay with Obama right now, who seemed the most reasonable and level-headed of all the talking heads through all this. His smugness still doesn’t do him any favors, but whatever. I’m sure I’ll vote for him again in 2012 (I’m an independent, for what it’s worth).
Once I’m past the anger, I agree with Pistol-Pete that this at least starts the conversation that had to happen re: debt reduction. For the next step, I’d like to think that new deficit reduction commission or whatever they’re calling it will actually propose something of consequence. Seems doubtful at this point…
As disappointed as I am in Obama
I know that a vote for his opposition is a big old goose-step to the right that we can’t afford, and to not vote at all in 2012 is to invite disaster. So until we can get a reasonable opposition to the democrats (or better yet: an actual liberal to vote for), I’ll be voting for Obama. The alternative is crazytown.
"Of what use is a philosopher who does not hurt anybody's feelings?" -Diogenes of Sinope
goose-step? Really?
I think many on this blog need to go back and take some history courses.
The Nazi reference – you do realize that the Nazis were all about government control? So not only is your comment hyperbolic but VERY inaccurate.
I've got good judgement from experience and experience from bad judgement.
It's a 100% political theater on both sides
Democrats want to keep the money flowing to prop up the economy (and their election chances next year), and the Republicans want to cut spending to sabotage the economy, hoping for a Senate/White House takeover next year.
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by PoorDick on Aug 2, 2011 3:33 PM CDT reply actions 1 recs
Agreed about the theater aspect...except:
The scary part is that we now have 3 very recent examples of this sort of approach “working” (Paulson telling Congress to give him money or the economy gets it, the extension of the Bush tax cuts or we shut everything down and now this) and you can bet your britches that we’ll see it tried again with the upcoming budget negotiations and the commission stuff. It might be theater, but it seems to be a favored technique by some.
Now the question is
“Do the Dems have the balls to do it to the Republicans when the inevitable swing in power takes place?”
My guess: the Dems make some kind of halfhearted attempt to throw a wrench into the works, which is equated to Treason, Terrorism, and Child Pornography by the Republicans.
This account is to be used solely for recommending sbjake's Fan Posts.
Lucy footballs are everywhere...
…aren’t they ;)
I was hoping for platinum coins. I thought Obama should have said that he would have put Reagan’s face on them. ;)
Democrats are pretty pathetic
Their positions enjoy popular support, but they can’t make the case for themselves, and seem to rush to give up their positions.
popular support?
please list examples
I've got good judgement from experience and experience from bad judgement.
It may well be theater
But as Kabukiesque as the parade of amoral toads scurrying to the microphones to proclaim their new-found fiscal restraint is, there are real consequences to not only our economy but the economies of Europe, East Asia, and the rest of the world. A rise in interest rates combined with a decrease in tax revenues due to greater unemployment caused by both cuts in public sector spending and cuts in private sector investment caused by the continued drying up of consumer spending will likely lead to a greater deficit. The next round of cuts ensues, which reduces employment and thus reduces revenues. This spiral will,of course, cause the bond holders to seek a better return in exchange for the greater risk so interest rates go up, which causes reduced spending and investment, which leads to greater unemployment, yada, yada, yada….
Economics is not an ideology, it is mostly science with some history thrown in. The monied class has suceeded in making people not trust their knowledge and experience about economic matters by trying to convince us that it is too complex a subject and must be entrusted to Wall Street and complex computer driven investment strategies. All of us now know better than this. A reasonable strategy for resolving our depressed economic situation while looking forward to ensuring paying down the debt at a time when it would be prudent to do so might have involved cuts and revenue increases(yes, that means taxes) that would be locked in and triggered by unemployment falling to a reasonable level, say 6% or so. That approach was never brought up by either side. What we got instead was a race to the bottom.
This Congress and President suceeded in making this country look more pathetic than Europe and Japan in dealing with an economic crisis. I don’t believe this play has any acts worth applauding; the vendors selling the rotten produce in the rear will be doing bangup business though….
Timberwolves 2011:
Kahnceptual Performance Art
by Dogpile on Aug 2, 2011 5:58 PM CDT up reply actions 1 recs
Outside perspective
Sitting (pretty) in our oilsoaked wealth (Norway), the consequences of the latest development in Washington might not have been so severe, but for other countries in Europe (and Asia) it could have created immense problems.
From here, the whole thing seems like they almost sent the world into economic chaos trying to prove a point. I think that is irresponsible.
My outside opinion (I know) is that taxes should be raised (for everyone, but the least for the poor, the most for the wealthy) and government spending must be reduced (end a few wars etc.) Then reduce the debt and America could again become the economic superpower it once was (is, if you insist, but flawed).
What was irresponsible
was having this much debt to begin with. It would have been more irresponsible to just rubber stamp yet another debt ceiling increase “with no fanfare or debate” as Oceanary puts it. That’s exactly what led to this crisis. We needed this near-miss on the debt ceiling to freakin’ wake people up about the extent of our fiscal problems. The electorate is now much better educated than before and this will continue to be a major issues heading into the next election cycle. I think it’s healthy.
by Rascal Flatts on Aug 3, 2011 9:16 AM CDT up reply actions
What crisis?
The crisis was made up. And how is the electorate more educated? Most of them don’t understand the difference between debt and deficit.
I would bet more people know the difference now than before
That doesn’t mean the majority do, but I think the overall awareness is way up compared to say a couple years ago.
by Rascal Flatts on Aug 3, 2011 10:41 AM CDT up reply actions
Why does the debt ceiling
which when used as a political weapon could ruin the economy, have to enter the discussion?
With a house majority, can’t conservatives deal in ordinary compromise on spending cuts?
Sorry for asking simple questions, but I haven’t read a good explanation of how this was anything but incredibly immature and irresponsible. What if Obama threatened a damaging act or omission of a military nature in order to win a domestic policy debate? (For example, an immediate and total withdrawal of troops from Afghanistan and Iraq, as a means of cost savings.) Would it be any different in terms of the way Washington will now be doing business with the Tea Party?
"Ordinary compromise"
That’s exactly what ended up happening in the end. It was messy, but a compromise did take place. All of the stakeholders took hard positions on issues that led to a last-minute deal, not just House GOP members. For example, Obama promised to veto a deal that would have lifted the debt ceiling by a smaller amount.
by Rascal Flatts on Aug 3, 2011 10:50 AM CDT up reply actions
A few things
Based on my limited understanding of all of this, I disagree that ordinary compromise happened. It sounds like cuts were made in a way that will increase unemployment at a time when unemployment is a huge problem. It sounds like these cuts would not have happened in the way that they were had the House GOP members not held the nation hostage with this debt ceiling weapon.
Second, “in the end” ignores the process itself, which might prove to be every bit as damaging as the result, if the credit rating suffers.
It sounds like you wouldn’t object to my hypothetical above, with Obama threatening irresponsible use of executive power to win policy debates—so long as he won the debate and didn’t actually carry out the threat?
It’s child’s play at work, it seems.
Obama did threaten to veto a deal he didn't like
So indeed he played with fire as well, not just the House GOP. The principle he stood upon was an agreement that would ensure a debt ceiling vote wouldn’t happen again unti after the 2012 election. I could contend that he held the nation hostage because he wasn’t willing to accept a deal that required a debt ceiling vote prior to the 2012 elections (sounds pretty political to me). So he dug his heels in on that issue and the GOP dug their heels in on no revenue increases.
by Rascal Flatts on Aug 3, 2011 12:14 PM CDT up reply actions
That's nothing new
Look at the history of debt ceiling increases. Every first year of a Presidential term since JFK — except for 2001 and 2005 (the debt ceiling was increased after the 2004 election) — has featured an increase to the debt ceiling. That’s the way these things have always gone.
On the Bush tax cuts, raising income tax rates and so on
I’m an old retired fart, spent years in computer and related business. I’ve been involved in startups, either proposing or funding.
I’ve never known a high income guy to start a business. They are too comfortable. It’s the guys on middle class or upper middle class incomes that start the businesses, particularly people with a spouse who works. The real high income guys don’t wanna let go of their sinecures.
Furthermore, the Repub mantra is that the top 10% pay 80% of all income taxes. OK, but the problem is, the top 10% earn more than 80% of all income, and control more than 80% of all wealth.
If you count SS contributions as income tax, which they are, the tax system is highly regressive and even low income people on salary pay into SS, as do a lot of undoc’d immigrants.
If the Dems had someone as clever as Karl Rove doing messaging for them, this would be a different country.
by timmuggs on Aug 2, 2011 4:00 PM CDT reply actions 3 recs
Startup financing
Maybe the high income guys don’t start the business but the guys who do start it get the money to finance it from the high income guys. Specifically, startups, especially technology startups get their money from venture capital firms or private placements. Only rich people can invest in venture capital firms and SEC rules require that private placement investors must have fairly high net worth or net income. I know because I have been both an investor in and financial officer of technology startups.
by Beancounter CPA on Aug 2, 2011 4:54 PM CDT up reply actions
Aren't the vast majority of start ups fairly small?
And don’t venture capitalists have a dreadful record when it comes to picking viable business models? In fact, wasn’t almost the entire dot.com boom and bust driven by venture capitalists who literally had no idea what they were financing?
Then again, I’m just a socialist who has never understood why capital is privileged so extraordinarily in these matters. If the start up could have gotten a bank loan instead, they’d end up owning their own business when the loan was paid off. But when you borrow from venture capitalists, it’s like the loan never gets paid off, and you have to give them money forever. Aren’t we over-privileging capital at the expense of the actual inventors, innovators, and workers?
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
Startups don't get bank loans
Startups don’t usually get bank loans unless the owners personally guarantee them. And yes, many VC backed startups don’t make it but the vc’s take the risk so that they can reap the rewards when some of them do make it. If it wasn’t for VC’s, its doubtful there would be an Apple of Microsoft.
.
by Beancounter CPA on Aug 2, 2011 6:14 PM CDT up reply actions
If it weren't for VCs
don’t you think we’d still have computers? I think you confuse financing with invention.
Simply because we do things in certain ways does not invest those things with any special virtue. In a world without VCs, you’d still see start ups, but maybe they’d all be smaller and — like the free market fans claim — only the best would survive. Instead we have a system where the small are bigfooted by the large simply because the larger outfits get Congress to give them special breaks.
Being good at something is no longer that important. Recent business history is rife with examples of superior products being done in by large companies, bad laws, and the ability of well-financed manufacturers of shoddy products to outmarket the often under-financed companies that produce quality products.
Right now in the grocery industry, paid product placement keeps local products off the shelves of chain grocery stores. It’s next to impossible to get distribution of new food products unless you sell out to General Mills or Diageo or one of the other giants. New software companies are all but doomed thanks to countless patent trolls (this could change, a case coming up before the Supreme Court could invalidate ALL software patents and that would be a very good thing).
I don’t mean to be argumentative, but it seems to me the only way to make money in this country today is to start out with a lot of money. Talent, genius or what have you really doesn’t seem to be part of it.
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
by TMiss on Aug 2, 2011 6:30 PM CDT up reply actions 1 recs
I know a lot of people with a lot of money
The favored investments are oil companies that are not American, mining companies that are not American, gold silver and platinum.
It is the small investors that are investing in small tech companies, Lulu Lemon and the like.
Of course there are VCs and they are primarily funded by big money. But they are not the major destination of big money.
Ever taken a look at the small tech companies and other innovative companies in Canada, including alternative energy startups? They are very innovative, and not funded by US VCs.
Ever look at Canadian tax rates? How do they support such a vibrant economy if the stuff fed by the crony capitalists in the USA is true? Why are Canadian banks sound and solid while we taxpayers have to bail out US banks?
As the author Michael Lewis said: In the US, it is socialism for the rich and capitalism for the rest of us. He wrote one of the classic takedowns of the 2008 crash, which we as taxpayers had to foot the bill for the bailout of the big bankrupt too-big-to-fail banks.
Ever look at the strongest currencies in the world right now (and the last decade)?
Norway, Sweden, Switzerland, Canada, Australia.
Also Germany — they export more than the USA does. If Germany were not part of the Euro, the German mark would be one of the two strongest currencies in the world.
BTW, Germany has universal health care, and German labor unions have a seat on the Board of Directors of every major company in Germany — a very strong labor union.
Ever looked at the medical systems of the strong currencies listed above? Are they what US right wingers would call socialistic?
Warren Buffett says that a unit of currency is essentially a share of stock in a country. By that measure, the USA is waaaay behind most of the rest of the world.
Question assumptions! There is a lot of BS floating about.
by timmuggs on Aug 2, 2011 9:06 PM CDT up reply actions 1 recs
FYI: On taxing of Social Security
You have the Democrats to thank for that one. It was a sickening move on their part.
by DBE on Aug 2, 2011 7:19 PM CDT up reply actions 1 recs
Sickening?
Save this page and look at it again when you’re crowding 60.
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
Not surprisingly,
Q3. Which political party started taxing Social Security annuities?
A3. The taxation of Social Security began in 1984 following passage of a set of Amendments in 1983, which were signed into law by President Reagan in April 1983. These amendments passed the Congress in 1983 on an overwhelmingly bi-partisan vote.
The basic rule put in place was that up to 50% of Social Security benefits could be added to taxable income, if the taxpayer’s total income exceeded certain thresholds.
The taxation of benefits was a proposal which came from the Greenspan Commission appointed by President Reagan and chaired by Alan Greenspan (who went on to later become the Chairman of the Federal Reserve).
The full text of the Greenspan Commission report is available on our website.
President’s Reagan’s signing statement for the 1983 Amendments can also be found on our website.
A detailed explanation of the provisions of the 1983 law is also available on the website.
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Depends on definitions
You are right about start-ups and entrepreneurs. Corporations go through an evolutionary process much like the life phases we as individuals experience.
The problem is that those who wish to tax the “fat cats,” “millionaires and billionaires,” and “corporate jet owners,” don’t realize that the vast majority in the $250k up bracket are S-Corp small business owners typically husband-and-wife with dual incomes filing jointly (not as a corporation). It is they who are the small business owners and job creators. It’s simple math for them. If they have to pay higher taxes, they have less money to expand and grow new jobs. Add to that the uncertainty of new regulations, ObamaCare, and the like, and you can imagine how that dampens new job prospects.
An interesting note: You could tax the top 200 wealthiest Americans at 100% and you would still not come close to offsetting our deficit.
Dingus Kahn, it's over
Well parsed
But taxing the top 1% at 100% would more than balance our budget.
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
You must be kidding
if you think the folks that own 42% of America’s wealth but pay an effective tax rate of about 20% aren’t sharping all of us. Yes, they tell you OVER AND OVER again about how much taxes they pay, but they don’t like to talk about how much they made. The top .1% averages over $1.6 million a year in income. Half of all Americans are in the workforce, so .1% of half of all Americans is 154,000 people. Multiply by $1.6 million and you get $246 billion. A year. Divide that into our national debt sometime.
I didn’t call for a 100% tax rate. That’s a straw man. But if the extremely wealthy paid a slightly higher rate instead of a LOWER rate than the rest of us, we wouldn’t be in this hole. It’s simple math, but if you try to google the numbers on this you’ll find that it’s very tough to find all the numbers in one place in easy to digest formats and that’s not accidental.
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
We wouldn't be in this hole if we spent less
Yes, you can find more revenues by re-building the tax code and eliminating all of the loopholes and exemptions. But that will impact most everyone, not just wealthy folks. Ultimately the spending needs to be addressed. We can get more revenues from the wealthy, but it ain’t enough to get us out of this mess.
by Rascal Flatts on Aug 3, 2011 11:53 AM CDT up reply actions
Fine, I'm with you
But instead of cutting social services, let’s stop being the world’s policeman and let’s stop subsidizing entire industries and let’s put up a firewall to stop corporate lobbying altogether. The money we spend on entitlements is money that goes directly to Americans. The money we spend on munitions is money that, for the most part, ends up in off-shore bank accounts. When government puts money in the hands of people, they spend it and the economy benefits. When the money all goes to the already rich, they remove it from circulation and stack it on top of the money they already have. That benefits no one except their never-worked-a-day-in-their-life heirs.
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
by TMiss on Aug 3, 2011 4:13 PM CDT up reply actions 1 recs
"stack it on top of the money they already have"
reminded me of this Slate article from a long time ago. Here’s the key passage:
Put a dollar in the bank and you’ll bid down the interest rate by just enough so someone somewhere can afford an extra dollar’s worth of vacation or home improvement. Put a dollar in your mattress and (by effectively reducing the money supply) you’ll drive down prices by just enough so someone somewhere can have an extra dollar’s worth of coffee with his dinner. Scrooge, no doubt a canny investor, lent his money at interest. His less conventional namesake Scrooge McDuck filled a vault with dollar bills to roll around in. No matter. Ebenezer Scrooge lowered interest rates. Scrooge McDuck lowered prices. Each Scrooge enriched his neighbors as much as any Lord Mayor who invited the town in for a Christmas meal.
I don’t expect this to change your mind about accumulated wealth, but I’ve always remembered this as an interesting take on Scrooge and people with piles of money.
This also gets at the question of "the wealthy"
When people talk about the wealthy not paying their fair share, who are they talking about exactly? The young Dr. with a family of four that is still paying off huge debts and whose net worth may be less than 100K? Just because someone has a high income doesn’t mean he or she is wealthy. Or are people talking about a two-income family where by both spouses are long-time public school teachers that lived below their means for the past 30 years? They might be worth 2+ million dollars.
Not everyone with a high income is wealthy and not everyone who is wealthy earns a high income. Many wealthy folks come from humble roots and took a “Scrooge” approach to saving money. That type of behavior should be lauded, not scorned.
by Rascal Flatts on Aug 4, 2011 8:36 AM CDT up reply actions
Which reminds me of yet another Slate article
here. (I’m a big fan of Slate.) It makes the point that $250,000 is rich pretty much wherever you live. The only way it relates to your post is that not many people are going to feel sorry for the doctor. But the article does equate “rich” with “high income”, which, as you point out, is not always the case.
Agreed
And there are plenty of high income earners that don’t do themselves any favors in terms of building up their net worth. They don’t have to drive BMWs, live in a $1M home with a jumbo mortgage, and send their kids to private schools. On the other hand you do have some who legitmately struggle to build up their net worth due to graduate/law school debt and living in a super high cost of living locale, like Manhatten, because that’s where the work is.
It’s the folks with a more modest income level that prudently save, invest, and live below their means who I have a soft spot for. I don’t want those folks to pay more taxes on dividends, capital gains, and their estate.
by Rascal Flatts on Aug 4, 2011 11:47 AM CDT up reply actions
Speaking of grad school debt
I saw an article yesterday that found a sneaky provision in the debt ceiling deal that removes the interest exemption on graduate school student loans. As I understand it, those loans will now begin accruing interest immediately, versus starting 6 months after schooling stops.
This seems like a very bad idea to me. If want to have a more educated populace with equal opportunities to climb the economic ladder (which I do), this seems like a step in the wrong direction.
Student Loan Debt
My wife went back and is in grad school right now, so this affects us.
My mom also teaches at an MN community college though. Student loan subsidies and higher ed in general (including teaching v. research faculty) is a troublesome area for me.
Colleges will take pretty much anyone. You don’t need to be able to read or speak English or be able to do high school-level math to get accepted to college. Yet you can obtain student loans for thousands of dollars, which each are subsidized by taxpayers and will follow you around whether you complete school or not.
You can also go to a private school and take out $60-$80K or more in student loans for a job that will pay you $30-$35K a year like social work (my wife didn’t go to private school, but is a social worker).
I’m all about education and opportunity, but this is all way too loose. If the bankers are to blame and not the borrowers for the subprime mortgage crisis, I don’t know why there is no call to tighten up student loan lending. Seems similar.
I see what you're saying
but there has been a call to tighten up student loans. Lenders are very, very protected now, to the point where the subsidized rate they receive is probably way too high.
The separate problem of college and grad school admissions, etc. is a real one. Going back once again to Slate, they recently had an article (the basic point of which I’ve seen in several places) about how graduate school in the humanities is broken. That is, they let too many people in with the promise of a tenure-track position on the back end. Very, very few of those students will attain that goal.
I’ve seen other articles on how lax undergraduate standards aren’t fair to the students who aren’t at all prepared to succeed in college. I don’t know how to address these things from a government policy perspective, though.
Protected?
Do you guys realize that student loans are the only thing besides back taxes you can’t evade through bankruptcy?
Worse, the Republican party with the help of some of worst Democrats shoved the student loans to the private sector where professional scumbags made a good living harassing the unemployed and then churning their loan so they could stick an out-of-work borrower with thousands in processing fees.
Student loans are a racket, and the members of Congress who “reformed” the process should be sitting in Supermax prisons right now.
Basketball is basketball. – Oscar Robinson
Correct. TMiss, I am not sure I understand what you are talking about here. My entire comment is that (A) student loans are too widely availble and (B) college entry standards are too lax. I would also add C – both of these lead to tuition inflation. Higher ed, public and private, is bloated and most people don’t seem to care or notice.
I would suggest redirecting higher ed operating and finance subsidies to primary and secondary education.
And even more to the point,
the first part of my post that he replied to was just a nice way of saying “student loans are a racket”.
I don’t think I agree that lax entry standards lead to tuition inflation. I think it’s more likely to lead to too many colleges / professors / TAs and a lot of unnecessary debt for unprepared students. I suppose the best way to treat unprepared students is to give them some sort of provisional or “lower-level” admission that requires passing some remedial courses. I wouldn’t want to exclude them from higher education altogether.
That’s a tough one. The easy answer is to say stop social promotion out of High School – any one who can meet the standards to graduate HS should be able to handle entry level courses at a CC. In practice, this doesn’t happen and it would be very difficult to hold back or not graduate those who don’t meet the standards.
You’re probably right that while the standards are a problem there are larger causes of inflation. Widespread availability of student loans is a large factor, blurred distinctions between teaching and research faculty could be, and too many specialties/departments/majors. Tough to isolate the inflation, but it’s definitely there.
Yeah, college cost inflation is crazy.
The best story I’ve heard is simply demand-based. That is, they charge it because people will pay it. Or at least some people.
The other factor is that, while the sticker price keeps rising, I think the share of students paying the sticker price is falling. (I don’t have hard stats to back that up, but that’s what I’ve been seeing for the nieces and nephews and through other anecdotes.)
This American Life (I think...I can't remember for sure)...
….had a show about the cost of college a while back and they talked to a prestigious college in one of the Dakotas (I can’t remember the name) whose admissions department jacked up tuition by a ridiculous rate over the past 5 years because they kept getting calls from parents of qualified students who were unsure whether the school was really good or not because it was so cheap. They’ve since attracted more qualified students because parents associate the high sticker price with quality.
"a prestigious college in one of the Dakotas"
That sounds made-up.
This account is to be used solely for recommending sbjake's Fan Posts.
by PoorDick on Aug 5, 2011 11:02 AM CDT up reply actions 2 recs
It's probably right in line..
…with the psychology of any other large purchase for a certain segment of the population: Expensive = good.
Sorry I didn't catch this
Yes, I’m just flat out mad/angry. Almost every discussion here touches on stuff I’ve been blogging about for years, and at times it just all mushes together into one big blood pressure spike for me.
Today I blogged a message to young people letting them know that yes, it gets worse. And the older you get, the worser it gets.
Basketball is basketball. – Oscar Robinson
Demand-based
I suspect the # of cash customers at colleges is very small. Changing the easy credit would likely change the demand side dramatically.
Also, there is a general notion that one “should go to college” or that it is guaranteed to improve one’s earnings. This can be the case, but is not necessarily true. You have to finish – and to finish, you need to be prepared with basic knowledge from H.S. Some degrees (I mentioned SW as an example) may not provide a decent ROI on the money spent depending on how expensive the school is. It would be nice to see this type of discussion incorporated into orientation or pre-admission counseling.
Good lord
what part of the top .1% making $1.6 million a year don’t you get?
There is a huge disconnect from the right about our tax rates. When you bump up the top rate, the only impact on a doctor making $260k a year would be on the $10k he/she makes over the $250k bracket. And when you cut middle class taxes, that cuts the rates for the rich on their first $75k or so of income.
It’s ALL about the rich, even though only a few of them are obsessed with taxes. Sadly, those are the ones funding the Tea party and half the Republicans and a quarter of the Democrats.
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
No matter
We can go ahead and raise rates on the super high earners. It’s not going to move the needle much on the debt. Plus as discussed earlier, given all the holes in the current tax code, don’t assume that it even leads to more revenues.
by Rascal Flatts on Aug 4, 2011 11:18 AM CDT up reply actions
Fun with math:
Just going back to the Clinton rates would only add about 4 1/2 cents on every dollar over $250k. This is the thing that really gets me about the tax debate: the actual numbers involved for high income earners. For someone making $260k this works out to a grand total of $450.
Also, I think we have an estimate of what the tax cut being rescinded would mean in terms of the debt: $3.3 trillion over 10 years. That’s a decent move on the needle.
What?
Christ I have seen more shit made up in this debate than ever before.
Everyone I know who have household incomes over 250k are either in the medical or law industry. Dual earners. “vast majority”. Sure.
And tax the top 200? Meaning the top .000057%? The fact that you an even offer that as a comparison should ring some bells as to the tremendous disparity of incomes these days.
And good work on getting in on the faux news buzzword of the day.. Job Creators.
By your logic, just don’t tax anyone who makes over $250k. Ever. This will obviously fix everything by creating millions and millions of jobs. We would hate to dampen our job prospects!
"Everyone I know"
Always a scientific way to prove a point….
by Rascal Flatts on Aug 3, 2011 10:55 AM CDT up reply actions
He's got it a lot more right than the point he's rebutting, though.
Look at this article about the Bush tax cuts by a guy at the Brookings Institute. In point 2, he writes:
One of the most common objections to letting the cuts expire for those in the highest tax brackets is that it would hurt small businesses. As Sen. Orrin Hatch (R-Utah) recently put it, allowing the cuts to lapse would amount to ‘a job-killing tax hike on small business during tough economic times.’
This claim is misleading. If, as proposed, the Bush tax cuts are allowed to expire for the highest earners, the vast majority of small businesses will be unaffected. Less than 2 percent of tax returns reporting small-business income are filed by taxpayers in the top two income brackets — individuals earning more than about $170,000 a year and families earning more than about $210,000 a year.
And just as most small businesses aren’t owned by people in the top income brackets, most people in the top income brackets don’t rely mainly on small-business income: According to the Tax Policy Center, such proceeds make up a majority of income for about 40 percent of households in the top income bracket and a third of households in the second-highest bracket. If the objective is to help small businesses, continuing the Bush tax cuts on high-income taxpayers isn’t the way to go — it would miss more than 98 percent of small-business owners and would primarily help people who don’t make most of their money off those businesses.
This may blow a few minds, but we don't spend too much
The numbers only seem huge because you’re not dividing everything by 300 million. And yeah, we spend a lot of money on stupid stuff, but shoveling every third federal dollar to munitions makers and war profiteers is what made this country great, right?
And I just deleted the rest of what I just wrote because really, talking about this doesn’t fix anything. One out of every five American adults gets their news from professional liars, and so long as that’s true, the left and right will never agree on anything ever again. Our tax rates are at an historical low, no other country in the First World taxes its citizens as lightly as we do.
What has changed since I entered the work force in 1971 is that in each successive year, wages have purchased less. Not just because of inflation, but because employers have the upper hand and have been sticking it to their workers. Corporations gleefully overpay their senior management team, and grossly underpay everyone else and these new low wages are why our economy is cratering.
Jack the tax rates back up to where they were in the flying high ’60s, and all these deficits will vanish (assuming we bring all our troops home and stop giving away money to Wall Street).
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
by TMiss on Aug 2, 2011 4:11 PM CDT reply actions 5 recs
I don't seem them jacking up tax rates.
But a fair, no deductions tax code with progressive rates would raise revenue by eliminating free loaders at all income levels.
by ChicagoViking on Aug 2, 2011 4:33 PM CDT up reply actions
The numbers only seem huge .......
because the are huge. Actually huge doesn’t do the amount justice.
TMiss, you must be running for mayor of Crazy Town if you really believe that.
by DBE on Aug 2, 2011 6:44 PM CDT up reply actions
If you divide 3.7 trillion by 300 million Americans
it comes out to about $12,300 each. Or less than your average bankster spends on dry cleaning and limo detailing a year.
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
You seem to assume everyone pays taxes.
Not all 300 Million people pay taxes. If you look at stats from the IRS, in 2009 there were 36.8 Million returns filed that paid income taxes. Take that divided into $3.7 Trillion and that is $100k per year per paying return.
If this is hardly anything to you, then you are quite richer than I am.
by DBE on Aug 2, 2011 11:47 PM CDT up reply actions 1 recs
Besides infants and children, everyone pays taxes
Most people pay the bulk of their taxes in payroll taxes. Most people who buy things pay sales tax. Anyone who drives pays gas tax.
Seriously
this Republican dodge of only seeing “income” taxes while ignoring sales taxes, state income taxes, fees, property taxes, etc., IS REALLY GETTING TIRESOME. Everyone’s caught on to that rhetorical nonsense so please stop trotting it out as if it had some kind of meaning other than playing games with numbers to trick people into seeing a world that simply is not there. The poor pay more of their income in taxes than the rich. Period. End of debate. Get a clue.
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
Heh.. yeah...
And for those people who spend every dollar they have on necessities get taxed at a greater rate on a percentage of total income.
If you divide the $15 Trillion debt by 300 million Americans
That’s $50,000 per person, or $200,000 per family of four. That is a HUGE amount.
by ThisIsForSota on Aug 3, 2011 8:48 AM CDT up reply actions
It's really staggering how many people don't realize the extent of our fiscal crisis
The deal just passed is barely a drop in the bucket. All it does is slow down the train wreck that will eventually occur.
by Rascal Flatts on Aug 3, 2011 9:19 AM CDT up reply actions
My family of 4
Has more debt than that, and we’re completely solvent, financially; we’ll have it paid off in 20 years. What’s the big deal?
You don't really have $200,000 in unsecured debt, I suspect
The national debt would be like $200,000 of charge card debt, with no means to decrease the principle . Your mortgage is more like the $40+ trillion of social security and medicare obligations over the next 30 years. We are talking about unsecured credit card debt, with variable interest rate.
by ThisIsForSota on Aug 3, 2011 10:19 PM CDT up reply actions
Unsecured credit card debt
because the value of the United States of America is zero?
How much do you think your cabin up north would be worth if our government suddenly vanished?
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
by TMiss on Aug 4, 2011 10:21 AM CDT up reply actions 1 recs
Lost in all the hyperbole and Sturm und Drang
or Teapots in a tempest that we supposedly have been watching this month is WTF are we going to generate new good paying jobs when any attempt at green legislation designed to keep us at least even with the Chinese in that technology is shot down immediately because the Koch brothers and T Boone don’t own enough of the technology yet!
Nero and the Roman senate had nothing on the current pack of jackals!
The American people are ready and willing to do what is necessary to save this country, they can’t get started because their voices and energy have been packaged and sold to the highest bidder….
Timberwolves 2011:
Kahnceptual Performance Art

NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
by TMiss on Aug 2, 2011 6:21 PM CDT reply actions 2 recs
Following Ike
According to President John F. Kennedy:
Our true choice is not between tax reduction, on the one hand, and the avoidance of large Federal deficits on the other. It is increasingly clear that no matter what party is in power, so long as our national security needs keep rising, an economy hampered by restrictive tax rates will never produce enough revenues to balance our budget just as it will never produce enough jobs or enough profits… In short, it is a paradoxical truth that tax rates are too high today and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now.
Dingus Kahn, it's over
Is this a parody?
Do you write for the Onion?
If not, I think they may have a slot for you.
Why would anyone want to abolish social programs?
Now that we’ve seen what the private sector has done to our healthcare, you’d have to be barking mad to want them in charge of your retirement. Especially after the way they hoovered up about a third of our pension fund equity in the Bush-Cheney market crash.
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
Uhhh
There was a vote to replace Medicare with a gift certificate that passed the house. Unemployment benefits just got defunded in a climate of 10% unemployment. Yes, people are trying to abolish social programs.
by aarendsvark on Aug 3, 2011 12:00 AM CDT up reply actions 1 recs
Wow, flattering picture of Mitch
juxtaposed with a quote I hope is true as soon as possible.
Raising the debt limit
(how many times now?) is like you being able to raise the limit on your credit card so you can keep spending above the previous limit. How many gazillions of dollars is our debt? Shouldn’t that number alone be an indication that too much money is being spent by the govenrment? Have never seen where more taxes has not resulted in more spending. This deal solved nothing long -term. It is no wonder gold is at record highs.
This just in:
The US Government’s Budget is Not Like a Family’s.
"Of what use is a philosopher who does not hurt anybody's feelings?" -Diogenes of Sinope
by Cynical Jason on Aug 2, 2011 7:02 PM CDT up reply actions
I'm guess I'm too stupid to understand all the complexity...
But isn’t running a deficit year after year a bad thing no matter what sort of budget we’re talking about?
Most families can't print their own money
If you one of those that can, please give me a call. Also, a lot of households have way more debt than they have income. It’s only a problem when you borrow money to do stupid shit, like invest in Star Trek collectible plates, or purchasing bombs when your infrastructure is crumbling and your schools are doing poorly.
You're aware that printing money has consequences, right?
Do you seriously think we can operate with budget deficits indefinitely? What I’m talking about has nothing to do with partisan politics. If our country spends more than the revenue we take in every year, bad things will happen. There’s no way around that, as far as I’m aware…
You're right, long term spending is not sustainable.
But right now, revenues are very low, and the economy is terrible. It costs almost nothing for the government to borrow more money right now, they should be spending it hand over fist until more of the country is back to work. Then (ideally) they’d jack up taxes.
So Mother Jones
compares it to a business not a family. Yes a business borrows for its capital and most have debt as long as they are in business. But if a business has more expenses than revenue they inexorably go bankrupt. Your point for this link?
I will just make the small point that
the deficit you suddenly feel such urgency over was caused by the bailout of the banks and the wars that both Bush and Obama have pulled us into to pursue corporate interests. There is no moral high ground available to any of us who have voted for the anemic and toadying clowns that constitute our current government. They are to a person corrupt and wholy owned corporate lackeys
Please don’t pretend that you were not in favor of the deregulation of the banks and financial institutions that caused this deficit.
Also please don’t expect us to believe that this steaming pile of legislation just passed in any way addresses the central problem of declining revenues caused by such deregulation..
Timberwolves 2011:
Kahnceptual Performance Art
Tea Party is not the same as the Old GOP
What many people fail to understand is that the Tea Partiers stands for limited government and they mean it. They see the governement’s spending as a problem that must be fixed- NOW. They will not wait till later. They will not cave. (The older GOP’ers tried to buy them off during the deal and they said no.) They would not support the debt deal as it did not really cut anything. The deal only reduces the rate of increases of government spending. Government will continue to spend more each year until a balanced budget amendment is passed or we end up like Greece or Argentina.
Exactly
The biggest threat to GOP incumbents in the last election cycle was the Tea Party. I don’t think many die-hard tea party folks have much of a soft spot for crony capitalism, bank bailouts, and hedge fund managers.
by Rascal Flatts on Aug 3, 2011 9:25 AM CDT up reply actions
THEN WHY DO YOU KEEP VOTING FOR THE PEOPLE
WHO KEEP SUBSIDIZING THE CRONY CAPITALISTS?
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
Have a look at this, please, if you want to see where the spending happened
This is titled:
" the chart that should accompany all discussions of the debt ceiling"
It shows Rep spending vs Dem spending. PLenty of blame, but mostly on the Republican side, the Party of Crony Capitalists…
Just because MSNBC says it,
doesn’t make it so. Non discreationary spending and the medicare drug benefit were both items that were pushed by the democrats. Tarp may have been approved on Bush’s watch but was paid out under Obama. I don’t think he goes scott free on that one.
Anyone who believe the projections used for this graph to show Obama’s deficit for 8 years must be running for Mayor of Crazy Town. The Health Car bill alone will cost more than what that graph shows. I also note that none of the military spending on Obama’s watch is shown. He could certainly have shut it down if he so choose.
Typical MSNBC slant.
Hold it
I thought you said I was the Mayor of Crazy Town?! Otoh, the more I listen to you, the more I think you must be the incumbent mayor.
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
Obama - 2006
“The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our government’s reckless fiscal policies. … Increasing America’s debt weakens us domestically and internationally. Leadership means that "the buck stops here." Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.”
Dingus Kahn, it's over
SnP, thanks for the recommendation of the book,
Thomas Paine and the Promise of America, it really should be required reading for anyone who purports to expouse the moral high ground in relying on the wisdom of our founding fathers in determining a way forward for this country.
I was particularly taken by his belief in the minimalism of government intervention in matters of religion, and his belief in the curbing of the influence of monied (re:aristocratic) interests.
The fact that the wingnuts see him as a great influence on their legitimacy should give us all pause as to whether they have actually read his works, or whether like scripture they read it only to produce talking points gleaned from a Briebart cut and paste job….
Timberwolves 2011:
Kahnceptual Performance Art
by Dogpile on Aug 2, 2011 7:55 PM CDT reply actions 1 recs
Sure thang
It is a good read. Try this one: Inside Scientology. It’s fantastic and it really is interesting to see how closely it’s followers resemble political ideologues. Also try “the whites of their eyes”. It’s about the tea party and historical fundamentalism.
I'm three chapters into it
and am amazed at how much viler L. Ron Hubbard is than I had thought (and my opinion of him was never very high).
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
Mostly I just want to skip ahead
to the years he spent on the yacht with all those young teenaged girls wearing tight white hot pants.
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
I recently saw a performance
that might interest (I mean disturb) you.
"Of what use is a philosopher who does not hurt anybody's feelings?" -Diogenes of Sinope
by Cynical Jason on Aug 3, 2011 12:09 AM CDT up reply actions
Paine
The Tea Party’s obsession with their interpretation of the founding fathers is amusing, so I am sure the point stands here. But as an avid history reader, I don’t recall Paine himself having a crucial role in the Revolution or Constitution. He wrote Common Sense which was popular and widely read, but did not have a role in the leadership of the revolution or formation of the eventual government.
His contribution was to have on the minds of all the colonists
the belief that America was a unique entity whose openess to a republic based on the intrinsic worth of man would reverberate throughout the world. His contribution to the formation of the republic was to steer it away from the aristocratic tendancies of Adams, Hamilton, and others toward the deist tendancies of Franklin, Jefferson and others. His writings, Common Sense, The Age Of Reason, The Rights Of Man, were the most widely distributed and discussed works of his time and whether one stood with what were refered to as republicans at that time or with the federalists, his thoughts steered the discussion up to, and in the person of President Lincoln, through the Civil War. The creators of the Abolishinist and Union movements of the late 18th and early 19th centuries rallied their followers with his words. Had Paine not existed it is likely that the tories would have been sucessful in keeping us from going to war, it is also likely that Washington would have lost the war due to lack of troops enlisting, and it is also likely that the constitution he pushed for as an affirmation of America’s exceptionalism would have reflected only the interests of the landholders.
So while one could argue that Paine was not present at the writing of the constitution, his presense was what drove all of America to achieve that moment.
I really would reccomend reading this book!
Timberwolves 2011:
Kahnceptual Performance Art
I’ll take a look, definitely. I understand the cultural/propganda value of Paine, but if the book is making the case that Paine was the driving force behind the revolution and Constitution writing then the author may have fallen in love with his subject a bit too much. Paine didn’t have an organizational/execution role, and from what I understand had a great deal of personal problems.
Figures such as Washington, Hamilton, Madison, John Hancock, Adams, and others had the critical organizational roles and individual efforts without which we might have been British subjects for another 100-150 years. The Tea Party crowd likes to diminish Hamilton and pump up Jefferson; IMO Jefferson was a bit closer to Paine. Inspiring words, not as much action.
The smaller economies of the world
Thank you for getting something done short term.
The say that when the US sneezes the rest of the world catches cold. You can just imagine what happens when the US has pneumonia….
I think this is the first time in history one man managed to destroy an entire city by himself. Even the Enola Gay had a flight crew.
No, actually what I got from the book was that
since the inception of this country there has always been a struggle between the powerful and the majority of citizens who hope for a brighter tomorrow for themselves and their children. We should engage is spirited debates about how to get there, as has been done throughout the history of the republic. Paine’s input into that discussion was that while we should opt for the most limited of government intervention in society, we should empower government to ensure that there is a chance for the poorest of us to succeed. I think we can all agree on that point, where we may differ is on whether our current system and it’s capture by the aristocracy allows for those things to happen anymore.
Timberwolves 2011:
Kahnceptual Performance Art
by Dogpile on Aug 2, 2011 8:17 PM CDT reply actions 1 recs
I'll sign off with this bit of news
The parade of bad economic news just keeps coming like an endless line of clowns piling out of a tiny car at the circus. However, it’s anything but entertaining as the “recession” word gets mentioned ever more frequently. Today’s entries come from the Personal Income and Outlays report for June of the Commerce Department’s Bureau of Economic Analysis. Personal income went up by 0.1 percent, half as much as experts had expected, and personal consumption expenditures fell 0.2 percent, the first such retreat in two years. Experts had expected PCE to rise by 0.2 percent.
The only positive news in the report is that inflation eased off, one important factor being reduced gasoline prices.
The report also included revisions to “personal income less transfer payments,” that is, transfer payments to individuals by the government. It had been previously calculated that this category had fallen by 7 percent at the trough of the Great Recession over the peak of the expansionary period before it. Now that plunge is estimated at an astonishing 11 percent.
This adds to what we learned in the report released Friday on the gross domestic product. For the second quarter, annualized GDP growth was a pitiful 1.3 percent and the revised figure for the first quarter was 0.4 percent. The government’s revisions for periods back to 2007 found that GDP growth had been even weaker during the recession than previously calculated. In other words, when we thought things were pretty bad, a post-World War II record for bad, they were actually considerably worse. Instead of shrinking 2.6 percent in 2009, as previously estimated, the economy dropped by 3.5 percent.
Given anemic consumer spending, a slowdown in manufacturing, the outrageously high official unemployment rate of 9.2 percent (and the fact more than 25 million Americans want full-time jobs but can’t find them), it’s small wonder that consumer confidence is down. With government spending now captive of ideologues who think income inequality and the lowest tax rates in eight decades still aren’t where they need to be, the potential for a double-dip recession is gaining ground. That’s a WTF moment for Americans who believe we never emerged from the Great Recession, no matter what the experts claim. Even the neo-liberal magazine The Economist gets it:
If nothing else, this awful [GDP] report helps to solve a number of lingering mysteries concerning the crisis. Arguments that unemployment must be structural, given the failure of projected growth rates to generate new hiring, now look silly. Projected growth rates were simply overstated, and current unemployment is exactly what we’d expect given such a feeble recovery. Those overly optimistic assessments of the likely impact of interventions, from fiscal stimulus to QE, also make much more sense now. Policymakers were fighting a fire far more intense than they recognised.
Of course, the previous underuse of countercyclical policy suggests that it’s more important than ever to get policy right now. Unfortunately, Washington is failing miserably on this score.
Unfortunately, that’s not news.
Maybe my strategy of getting out of the market and buying treasuries isn’t quite as safe as I hoped?
Timberwolves 2011:
Kahnceptual Performance Art
I think I saw that treasuries....
….have a negative rate a few years out. Amazing. We should be printing money for infrastructure and energy projects with these types of interest rates. Long term, the debt is bad, butmshortmterm, it’s kind of crazy to not spend as close to free money as we’ll ever get.
agreed...
Considering inflation rates, borrowing at half a percent is damn near free money. It would be irresponsible to not capitalize on such absurdly low rates.
Uh
you still have to pay it back eventually.
by Rascal Flatts on Aug 3, 2011 10:52 AM CDT up reply actions
unlike the rich
who never have to pay anything back, and who, if the right had their way, would never have to cough anything up when they die, assuring us of a permanent monied class at the top, just like the old kings and queens fa la la.
RF, if you really listened to the rest of us, I think you’d see we want everyone treated the same, but you’re listening to the folks who make most of the money and do nothing but gripe about paying some of the taxes.
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
"if you really listened to the rest of us"
Who is “us”? And you don’t know who I listen to or read.
by Rascal Flatts on Aug 3, 2011 11:55 AM CDT up reply actions
Sorry if I'm not giving you enough credit
but much of what you’ve said is stuff I’ve read online at Fox and other pro-rich “news” sites.
This whole topic makes me a bit bitter because I’ve typed up hundreds of salary histories over the last twenty years and it was impossible not to notice that my least competent (but fastest talking) clients were the only ones showing signficant income growth. Granted, entrepreneurs rarely come into resume shops for an update, but I’d argue strenuously that our economy rewards all the wrong people, and shits on everyone else.
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
Buy Swiss francs and Canadian dollars
In an investment account, look at FXF (Swiss francs) and FXC (Canadian dollars) — an easy way to diversify your cash.
I hate to say this
but one of my clients did alright shorting Bush-Cheney and buying gold. Sadly, the cost of living in Panama was higher than he’d thought, and the gold ran out. He’s back here now and trying to rejoin the rat race.
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
I'm no political analyst
but I will propose the same solution that I always do in times of panic:
We have to start eating the children.
Seriously, it will save them from a terrifying future in which the politicians become even more hyperbolic than they already are.
we should start...
…With any children of Irish heritage.
by Stop-n-Pop on Aug 3, 2011 7:17 AM CDT via mobile up reply actions 1 recs
This should be handled
with kid gloves.
"Of what use is a philosopher who does not hurt anybody's feelings?" -Diogenes of Sinope
by Cynical Jason on Aug 3, 2011 11:32 AM CDT up reply actions
A common sense question: why blame the tea party?
I’m a little slow, and I’m just trying to make sense of things in a non-partisan way. Can someone explain Oceanary’s comment:
" . . . with ideological extremists (particularly the Tea Party) holding Congress hostage over the negotiations."
What am I missing? I think the tea party is about 20% of the house. How were they able to hold Congress hostage? The numbers just aren’t there to prevent the majority in the house from doing anything. Sure, they may have held up a Republican only solution, but considering that the Senate and President are Democrats, the House needed to pass a bi-partisan bill anyway.
Some insight as to what I am missing would be apprecitated. Thanks.
Our system is broken
Proportional representation in Congress is grossly distorted by the Senate where states with populations smaller than some suburbs have two Senators just like New York, Texas or California. Add to that the decision by the Republican party post-Bork to use the racist southern Democratic filibuster strategy to stop literally all judicial nominations and bills by Democrats they oppose. The 60-vote rule allows a minority party to block/obstruct almost everything that doesn’t have overwhelming approval.
The House is more small d democratic, but thanks to Obama’s chickenshit first two years in office, the GOP recaptured the House. This would not be so bad, but for decades the GOP has run itself through its caucus. Whatever the GOP caucus decides, ALL Republicans are obligated to support. This allows the ultraconservatives in the House GOP caucus to team up with the Tea partyers to rule the caucus despite only having about 26% of the votes in Congress.
And there you have the system that allows the few to obstruct when they are out of power, and railroad the hell out of us when they have the power.
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
I still don't get it, I must be slow
If people are blaming the Tea Party, it’s the House, rather than the Senate, that would have the problem. How does the number of senators per state point blame towards the Tea Party for the speed of the negotiations.
The filibuster argument does not make sense. Obama was able to get universal health care despite a lack of overwhelming popular support.
The leadership of the republican party are not teapartiers. Why is the majority of the republican party “obligated” to follow the Tea Party?
I’m still confused as to how the Tea Party is holding Congress hostage.
by ThisIsForSota on Aug 3, 2011 10:29 PM CDT up reply actions 1 recs
Obama got health care only because he had 60 Dems for the intial vote
Otherwise, it would have never gotten through.
This speaks to a larger point
but if you read about the history of Poland, you may gain some insights into how the tyranny of the minority works.
The idea of letting the loudest members of your caucus set the agenda is not a Republican or conservative idea. It’s a hold over from the “who can lie the loudest” old southern Democrats who have successfully completed a takeover of the Republican party. The spread of southern Democrat Republicanism, btw, closely mirrors the propagation of evangelicals into the west and north.
I grew up Republican during the Civil Rights era and hated southern Democrats. If Nixon hadn’t turned the party over to Strom Thurmond and the racist southerners, I’d probably still be a Republican.
NBA players do smoke marijuana...smoking weed in the off-season sometimes is my personal choice and personal opinion...I don't think that's stopping me from doing my job — Josh Howard
Fiscal austerity in the middle of 9.2% unemployment is insanity
And to those Teapublicans that are concerned about the deficit and debt, where were you when 80% of our current debt was run up under the last 3 GOPer presidents?
I’ll tell you where you were. Voting for every last one of them. But now that a Dem president inherits that debt, the world is coming to an end. Hypocrites!!
by rover27 on Aug 3, 2011 10:11 PM CDT reply actions 1 recs














