President "Republican Lite" Obama Making Nice With Senator Boehner and Representative Canter, Republican Hatchet Men
You may still be on that holiday high, hung over from the good eats and drinks. However, it’s time to sober everyone up with the reality that is coming. You may be feeling pretty fine right now because your tax cut was saved. Oh, well, you gave in on that tax cut deal for the wealthy thing because well, you got yours! Of course we all know that the status quo is unsustainable for Republicans, unless they’re talking about tax cuts for the wealthy. So, you might be wondering what I could possibly be worried about. The answer is, plenty! As the tax cuts may be giving many people a bit of sugar high right now, those same people will soon be feeling that sugar candy low you get when that sugar rush is gone!
First of all you need to understand that the Republicans feel they can make the most gains by making life as difficult as possible for the Democrats. The Republicans are putting forth a new rule that will make it harder to raise the debt ceiling, something they didn’t mind doing under the Bush administration as I recall. http://thehill.com/homenews/house/134799-new-gop-rules-will-make-it-tougher-for-house-to-raise-debt-ceiling
Furthermore, now that the Republicans got that big tax cut they wanted they are ready to take a hammer to everything else because after all, we are broke. Just listen to Senator Boehner talking about our country being broke and then turning around and pushing for the massive tax cut for the WEALTHY! What a trooper!
That means there is only one way to go and that’s with cuts and I don’t mean tax cuts. We know they are not going to “raise” taxes as they have pushed through the continuation of the Bush tax cuts, even for the wealthy. So just what is discretionary spending any way? Part of the discretionary spending is the defense but we all know that it will not be cut and in fact is going to see a budgetary increase in 2011. That leaves all of the other types of special programs like education and of course that pesky money that goes back to individual states. The states are already hurting and they are probably going to hurt even more! You can read about the discretionary spending in the articles I site and also in the letter sent to the President by the Republicans in 2009. With extending the Bush tax cuts both parties have intentionally painted themselves into a corner. They are going to have to find a way to get out of the room without messing up the paint. It’s not going to happen because once again both parties are going to lay all the ugliness at the feet of the American people. Instead of having the wealthy top two percent step up and do more to help this country, we can all expect that the middle class and the poor will once again absorb these burdens.
In 2009 the head Republicans, Senator John Boehner and Representative Eric Cantor sent President Obama a letter. In it they outlined the cuts they wanted to make to reduce the deficit. These Republicans look at any change to the Bush tax cuts as being a tax increase unless of course it betters the wealthy. We all know that they upped the death tax to favor the very rich! Even though the Bush tax cuts were set to expire and the country would go back to the previous tax code, it is now looked at as being a substantial increase in taxes if they were allowed to expire. It’s really fascinating when you start getting into the mindset of how the Republicans really think about these issues. Much of what they want to do is to push everything back to the states. Of course this has been going on for years already and many states are in a heap of trouble but if you read things through carefully, it is exactly what these guys want to do. They want to eliminate many programs. I think this 2009 letter is a big hint as to what the political fights will be coming down the road in 2011. Remember the budget is only good until March 4th. So, what can we expect? http://republicanleader.house.gov/UploadedFiles/06-04-09_Savings_Proposals_For_President.pdf
This is something everyone should read as it is a real eye opener. There are many programs in education they want to cut or eliminate completely, even my own “art education” gets the whack! So much of what they want to do they deem in their infinite wisdom as not a “federal” role.
In regards to the issue of Social Security I think this is interesting. This is directly from About.com. http://useconomy.about.com/od/fiscalpolicy/p/Mandatory.htm
The first Baby-Boomer turned 62 in 2008, becoming eligible to retire on Social Security benefits. By 2025, those aged 65+ will comprise 20% of the population. As Boomers leave the work-force and apply for benefits, three things happen:
- The percentage of the labor force under 55 stagnates, providing less payroll taxes to fund Social Security.
- GDP growth declines remains flat thanks to fewer workers.
- By 2040, the Social Security Trust Fund goes bankrupt.
Choices for FY 2012 and Beyond:
As a result, the U.S. Federal Budget in 2012 and beyond will have to choose among the lesser of three evils, none of which are good for the economy:
- Devote more of the budget to pay Social Security benefits. However, to maintain current benefits, the federal budget will have to increase to 25% of GDP by 2045.
- To fund this increased budget, taxes would have to increase, further slowing the economy.
- Decrease the benefit amount paid to retirees. This is the most likely scenario. This would force able-bodied Boomers to continue working. Those who couldn’t work would provide a further drain on the economy.
What I find as the interesting part is the fact that both parties are aware of this and they still decided to reduce the payroll taxes recently. It makes me wonder if they want to cause a catastrophic failure so they can say, “I told you so.” I guess the idea is we pay 2% less into Social Security and that will leave us more money to spend on junk to stimulate the economy. What kills me is what I just read over at About.com. About claims we will have to choose amongst the lesser of three evils, so why did we make it worse by partially defunding Social Security? Maybe greater minds than mind can answer that question. Of course my suspicious mind makes me think that we are being set up for failure so that once again we will accept less. We will accept less in benefits when we retire and we will work longer to get to retirement. Life is over as most of us have figured for our retirements. The state of Michigan already is taxing me higher by making me pay more into my retirement without any additional benefit. I’m sure the Federal government is getting ready to do the same.
There is an agenda out their folks. It seems like all the things that were created under FDR, which were sacred cows at one time, are now going to be fodder for the Republicans and our Republican “lite” President to dismantle. Politicians that might have fought this have been systematically taken out. Two come to my mind that won’t be back after the New Year, Representative Alan Grayson and Senator Russ Feingold. I mean if Democrats had to go, why couldn’t it have been more of those Blue Dogs?
http://useconomy.about.com/od/fiscalpolicy/p/Budget_Spending.htm