Tag: federal budget

Cross posted from The Stars Hollow Gazette

Up Date below the fold

Call a Wahmbulance for House Majority Leader Eric Cantor as he quits the debt ceiling talks with Vice President Joe Biden:

House Majority Leader Eric Cantor, Republican of Virginia, said Thursday that he was quitting  the debt ceiling negotiations being led by Vice President Joseph R. Biden Jr. because of an impasse over the role of taxes in any final deal.

“I believe that we have identified trillions in spending cuts, and to date, we have established a blueprint that could institute the fiscal reforms needed to start getting our fiscal house in order,” Mr. Cantor said in a prepared statement.

“That said, each side came into these talks with certain orders, and as it stands the Democrats continue to insist that any deal must include tax increases. There is not support in the House for a tax increase, and I don’t believe now is the time to raise taxes in light of our current economic situation. Regardless of the progress that has been made, the tax issue must be resolved before discussions can continue.”

David Kurtz at Talking Point Memo says this may not be such a big deal:

The read we’re getting is that this could be merely an indication that the emissaries to the talks have gotten as far as they can get and that the remaining heavy lifting is going to have be done by the principals: President Obama and Speaker Boehner.

Meanwhile, Speaker John Boehner doesn’t sound to pleased that he will now have to defend the Republican stand that tax increases are off the table:

“I understand his frustration, I understand why he did what he did, but I think those talks could continue if they’re willing to take the tax hikes off the table,” he said.

One possible interpretation of Cantor’s pullout was that he needed Boehner’s authority to negotiate revenue increases necessary to complete a far-reaching deal with Democrats, but Boehner made repeatedly clear on Thursday that he had not budged at all on the issue.

“Tax hikes are off the table,” he said. “First of all, raising taxes is going to destroy jobs….second, a tax hike cannot pass the US House of Representatives — it’s not just a bad idea, it doesn’t have the votes and it can’t happen. And third, the American people don’t want us to raise taxes. They know we have a spending problem.”

(emphasis mine)

Boehner may be correct on point two but he is so wrong on one and three that is totally laughable and flat out lies that the press refuses to counter. Americans know we have a revenue problem because of the Bush/Obama tax cuts and loop hole in the tax code. Americans overwhelmingly support tax increases on millionaires. I don’t think Boehner is stupid, I think he is a tool of his corporate masters.

My only question now is where the hell is the Democratic leadership to counter this? Why aren’t the Democrats out in front of the cameras pointing out how wrong the Republicans are? The Democrats need to listen to the people, too and take Social Security, Medicare and Medicaid off the table as well.  

Cross posted from The Stars Hollow Gazette

While CEO’s are rolling in more money than any average workers could imagine in a lifetime, raising their taxes and closing the tax loop holes that allow then to pay even less or, in some instances, nothing at all. According to a USA Today analysis, CEO’s pay went up 27% in 2010 while workers’ pay rose only 2%.

Paychecks as Big as Tajikistan

By Gretchen Morgenson

WHEN does big become excessive? If the question involves executive pay, the answer is “often.”

snip

Answers to that question come fast and furious in a recent, immensely detailed report in The Analyst’s Accounting Observer, a publication of R. G. Associates, an independent research firm in Baltimore. Jack Ciesielski, the firm’s president, and his colleague Melissa Herboldsheimer have examined proxy statements and financial filings for the companies in the Standard & Poor’s 500-stock index. In a report titled “S.& P. 500 Executive Pay: Bigger Than …Whatever You Think It Is,” they compare senior executives’ pay with other corporate costs and measures.

It’s an enlightening, if enraging, exercise. And it provides the perspective that shareholders desperately need, particularly now that they are being asked to vote on corporate pay practices.

Let’s begin with the view from 30,000 feet. Total executive pay increased by 13.9 percent in 2010 among the 483 companies where data was available for the analysis. The total pay for those companies’ 2,591 named executives, before taxes, was $14.3 billion.

That’s some pile of pay, right? But Mr. Ciesielski puts it into perspective by noting that the total is almost equal to the gross domestic product of Tajikistan, which has a population of more than 7 million.

Warming to his subject, Mr. Ciesielski also determined that 158 companies paid more in cash compensation to their top guys and gals last year than they paid in audit fees to their accounting firms. Thirty-two companies paid their top executives more in 2010 than they paid in cash income taxes.

The report also blows a hole in the argument that stock grants to executives align the interests of managers with those of shareholders. The report calculated that at 179 companies in the study, the average value of stockholders’ stakes fell between 2008 and 2010 while the top executives at those companies received raises. The report really gets meaty when it compares executive pay with items like research and development costs, and earnings per share.

Using Disney CEO, Robert Iger and workers at Disney World in Florida as an example, Time looks at the ever widening income gap:

Disney’s Robert Iger got a 45% bigger bonus in 2010

The corporate PR teams are defending these bonuses by saying that the executives deserve the pay because stock prices and earnings are up. A Walt Disney spokesperson says that shareholder return at the company was up nearly 24%, substantially more than the Standard & Poors 500. But haven’t we already learned, through bubble after bubble, that stock prices are a poor indication of anything. They are irrational, give us false positives, and crash.

But here’s what is the real problem. Yes, if higher profits and a higher stock price warrant better pay for CEOs, why doesn’t the same ring true for the average employee. Workers at Disney’s Florida amusement park Walt Disney World fought for months last year and early this year for higher wages. What they finally ended up getting, in a new contract settled earlier this month, was an annual raise of 3% to 4% over the next three years. The workers will get a bonus, too, of $650, a mere 20,769 times less than Iger’s bonus. As long as it remains that only a small segment of our population will be rewarded for better performance, while the rest of us do more and more work for the same pay, the wealth gap in America is certain to get worse.

It is very evident that the White House, Congress and many state governors and legislatures have not learned that tax cuts for the wealthy will not improve the economy or create jobs. They have done nothing to reverse the trend of the widening income gap. They have dug themselves and us into a hole so deep that they cannot hear rational ideas for even stopping the spiral into a economic morass.

Cross posted from The Stars Hollow Gazette

Finally, Democrats leaders are telling the White House to take Medicare off the table negotiating the debt ceiling. Hello? The majority of Americans support Medicare.

Actually there should be nothing on the table, raising the debt ceiling isn’t something that should or need to be negotiated, just DO IT. This is not a game. This is the economy of the United States and the world which relies on the US dollar as the basis for trade. Are the Democrats, at last, seeing the Republican folly of using Medicare as a pawn in their game for their corporate masters?

In Debt Ceiling Negotiations, Democrats Insist Paul Ryan’s Medicare Reform Plan to be ‘Off the Table’

In a letter to Vice President Biden today, five Democratic senators are calling for the Paul Ryan Medicare reform plan to “remain off the table,” as the budget and deficit negotiations over raising the debt ceiling go forward.

“We encourage you to remain unwavering in opposition to this scheme. For the good of the nation’s seniors, it must remain off the table,” the Democratic Senators write, ” we will never allow any effort to dismantle the program and force benefit cuts upon seniors under the guise of deficit reduction.”

The letter has been signed by Senators Bill Nelson (D-FL), Ben Cardin (D-MD), Sherrod Brown (D-OH), Claire McCaskill (D-MO) and Jon Tester (D-MT).

Even the Wall St. puppet, Sen Charles Schumer (D-NY) has said that Medicare cuts are a not a negotiating point:

The GOP has mostly stood behind the Medicare proposal, crafted by Rep. Paul Ryan (R-Wis.). But it’s been Democrats who have highlighted the proposal at every opportunity, and they’ve repeatedly called on debt negotiators to say publicly that Medicare cuts are off the table entirely.

If Congress is going to look to the program for savings, Schumer said, the money should come from cuts to the pharmaceutical industry rather than benefit cuts. He cited two policies Democrats have consistently supported: price controls on prescription drugs and extended rebates for people who are eligible for both Medicare and Medicaid.

A deal will be “impossible” if Ryan’s Medicare proposal is included, Schumer said.

The negotiations are aimed at finding a workable solution that both parties can support – which clearly would not describe the Ryan plan.

Cross postedfrom The Stars Hollow Gazette

Since 1962 the debt ceiling has been raised 74 times. Under George W. Bush, it was raised ten times without amendment. The current fiscal problems were caused by the Bush tax cuts, the Afghanistan and Iraq Wars and the economic downturn that both Republicans and Democrats refuse to realistically address by investing in this country, raising revenue, yes taxes, and closing the tax loop holes for corporations. The deficit will not be reduced by ending Medicare and decimating Medicaid and forcing seniors to pay 68% of the costs. That Medicare is even on the table without the tax increases for the top 1% should be a non-starter for negotiations on limiting the debt or raising the debt ceiling. The only reason that I can see this is even a discussion is that the President and the Democrats are beholding to the health care industry and pharmaceutical companies that would benefit in the trillions of dollars if Medicare and Medicaid are ended.

Every Democrat in the House who voted “nay” on the clean bill to raise the debt ceiling should be primaried with a real Democrat who will vote for the best interests of the middle class and the poor and not negotiate away their safety nets to make the rich wealthier.

Cross posted from The Stars Hollow Gazette

Because we aren’t going to let you get out from under it….

Thus spoke Anthony Weiner on on May 24th, laying out the Republican plan to replace Medicare with an inadequate voucher program:

Today, House Republicans brought another bill (HR 1216) to the House floor that does not address jobs and wastes time in a futile attempt to repeal part of the Affordable Care Act. House Democrats are staging a “mini-filibuster” by “striking the last word” allowing them five minutes of time to discuss their strong opposition to the Republican-passed budget which ends Medicare as we know it and forces seniors to pay over $6,000 more a year.

   Weiner: I move to strike the last word Mr. Chairman. Mr. Chairman, you may recall I was standing here approximately two hours ago waiting to speak with several other members on the efforts of my Republican friends to eliminate Medicare as we know it and for reasons that are known only to the Chair, I was denied the ability to do that. Well, I’m back. And just to review the bidding, here’s where it was before that order was made. We had the Chairman of the Republican Congressional Campaign Committee, a good man, a guy I like, stand down in the well and say, ‘Oh, no’ (and this by the way is someone who is elected by the Republican members to represent them in races all around the country) saying that the Ryan plan wasn’t a plan it was and I’m quoting here, “a construct to develop a plan” and he said the proposal is not a voucher program and then he said it was a one size fits all, that Medicare was draining our economy is what he said.

  Well, ladies and gentlemen, that might be the rationale for our Republican friends wanting to eliminate Medicare, but none of those things are true. It is not a ‘construct to develop a plan’ it is the proposal of the Republican party of the United States of America to eliminate Medicare as a guaranteed entitlement. If you don’t believe me, go get the book that they wrote, go get the budget that they wrote, go get the bill that they wrote.

h/t to Crooks & Liars for the transcript.

The Ryan Budget plan has failed in the Senate with 5 Republicans opposing it, the Republicans are still embracing the proposal to eliminate Medicare. They are in denial about the loss of NY-26, long a Republican stronghold. to Democrat Kathy Hochul. The sadder part is the White House has also missed the message

Joe Biden group to tackle Medicare and Medicaid: aide

Vice President Joe Biden and top lawmakers will examine government-run health plans on Tuesday as they try to work out a deal to raise the United States’ borrowing authority, a congressional aide said.

h/t Marcy Wheeler

It would appear that the White House is willing to sell out future seniors to give political cover for raising the debt ceiling.

Cross posted from The stars Hollow Gazette

Did you know that the Federal government hit the debt ceiling? Did you know that the US government owns 70% of the state of Utah? Did you know that the US government also still has lots of gold in Ft. Knox? The right wing Tea Party Republicans, who now hold the country hostage, have suggested we hold a “garage sale” and sell off assets to pay the ransom.

Many conservative Republicans in the House of Representatives, especially those affiliated with the small-government Tea Party movement, say that Geithner and the White House are trying to panic them into raising the debt limit.

They also contend that the Treasury has other options to continue meeting the country’s obligations, such as selling assets including gold reserves and government land.

“There is no certain day,” said congressman James Lankford, a member of the fiscally conservative Republican Study Committee. “It’s a moving target. Even if Aug. 2 is passed, Treasury has the tools in its back pocket to keep us from defaulting.”

Lankford added: “Treasury has done a good job of trying to increase the panic, rather than giving us solutions.”

Dennis Ross, a House Republican and a member of the Tea Party caucus, told Reuters: “I don’t think Treasury has been up front with us. I am not convinced the sky will fall in on August 3.”

Ross added: “I’m not an economist, but I have maintained a household. The federal government owns 70 per cent of Utah, for example. There are federal buildings. If you need cash, let’s start liquidating.”

If they decide to sell off chunks of Nevada, I want first dibs on Area 51.

Cross posted from The Stars Hollow Gazette

Jon Stewart asked where is the outrage over Paul Ryan’s (R-WI) budget plan that includes not only ending Medicare with a voucher system but also raising the eligibility age for Medicare. Yes, Medicare, not just Social Security as has been proposed by both Republicans and Democrats, including the White House, as if the one where not enough.

Under current law, you become eligible for Medicare on the day you turn 65. If the Republicans get their way, you wouldn’t become eligible for the new Medicare voucher until the day you turn 67.

The change would happen gradually, with the eligibility age rising two months every year, starting in 2022. And, in the grand scheme of things, it’s not like that many people are between the ages of 65 and 67 anyway. But think for a second about who those people are–and the insurance options they’d have available to them without Medicare.

Remember, the House Republican budget would also repeal the Affordable Care Act. That would leave insurance companies free to charge higher premiums, restrict benefits, or deny coverage altogether to individual applicants who have pre-existing conditions. Given the relatively high incidence of conditions like hypertension, arthritis, and vision problems among older Americans, it’s safe to assume many seniors would have trouble finding affordable coverage–if, indeed, they could find coverage at all.

Economist Paul Krugman in his Conscience of a Liberal blog this morning points out that “in our increasingly polarized society, life expectancy is more and more a class-related issue.”

As the Social Security Administration has shown, the gap between life expectancy in the top and bottom halves of the wage distribution has risen sharply:

Since most of the corporate media is controlled by the right wing oligarchs, it’s a little difficult to get the real message out to the people or at least an unbiased reporting of what the Republicans have been plotting. The Murdochs and Redstones have controlled the message but because of shows like Jon’s, Stephen’s, Rachel’s and Keith’s, the real agenda is finally getting out there. Evidence the events in Wisconsin, Michigan and Ohio where the voters are enraged, we now need to take this to a national level. Witness also the latest DCCC message that call the Republicans out on their lies to constituents about Medicare in this MSNBC’s segment with Cenk Uygur:

Finally, we are starting these corporate puppets being held to account for their lies and hypocrisy. Now, throw all the bums out from top to bottom.

Cross posted from The Stars Hollow Gazette

A balanced budget with a surplus? No way not happening. Well it seems that there is a counter proposal by the Congressional Progressive Caucus that does just that.

The CPC proposal:

• Eliminates the deficits and creates a surplus by 2021

• Puts America back to work with a “Make it in America” jobs program

• Protects the social safety net

• Ends the wars in Afghanistan and Iraq

• Is FAIR (Fixing America’s Inequality Responsibly)

What the proposal accomplishes:

• Primary budget balance by 2014.

• Budget surplus by 2021.

• Reduces public debt as a share of GDP to 64.1% by 2021, down 16.5 percentage points from

a baseline fully adjusted for both the doc fix and the AMT patch.

• Reduces deficits by $5.6 trillion over 2012-21, relative to this adjusted baseline.

• Outlays equal to 22.2% of GDP and revenue equal 22.3% of GDP by 2021.

There was debate this morning in the House about the austerity budget put forward by Tea Party Rep. Paul Ryan’ (R-WI) that decimates Medicaid and Medicare. When Rep Keith Ellison asked  Rep. Todd Rokita (R-IN) when the Ryan budget plan would produce a surplus, Rokita was clueless:

   ELLISON: When does the Ryan budget create a surplus?

   ROKITA: The budget proposed and voted on by the committee – […]

   ROKITA: With responsible, gradual reforms to the drivers of our debt, like Medicare and Social Security, this budget will balance –

   ELLISON: I asked the gentlemen when the Ryan budget created a surplus. He could have given me a year. He didn’t. That’s because he’s probably embarrassed about when that is. Let me tell you when the Progressive Caucus comes to surplus: 2021. That is known as a responsible budget.

According to the Congressional Budget Office (CBO), Ryan’s budget will not produce a surplus until 2040 (pdf). The Economic Policy Institute looked that the Progressive Caucus budget. Their analysis said that it who produce a $30.7 billion surplus in 2021 (pdf).

h/t to Travis Waldron at Think Progress

Cross Posted from The Strs Hollow Gazette

Will there be another “cave exploration by our Spelunker-in-Chief? Despite President Obama speech on Wednesday and his demand request for a “clean bill” to raise the debt ceiling, there are those who have their doubts about Obama resolve to stand his ground considering his past capitulations in the name of bipartisanship for the last two years.

Now Sen. Jim DeMint (R-SC) has threatened to filibuster the bill should it not contain “other fiscal reforms” like a balanced budget amendment.

A top conservative senator on Thursday indicated he is willing to go to extreme lengths to prevent a vote on raising the debt ceiling, even if it hurts the Republican Party politically.

Sen. Jim DeMint (R-S.C.) said on the conservative Laura Ingraham Show he is considering filibustering an upcoming vote to raise the nation’s $14.3 trillion debt limit if it doesn’t contain other fiscal reforms.

While the Senate Minority Leader Mitch “The Human Hybrid Turtle” McConnell (R-KY) has said that the ceiling should be raised to avoid the dire consequences, he would like to see it passed with only Democratic votes.

Mr. McConnell is discouraging his colleagues from filibustering a vote to increase the federal debt limit because he knows that, if push came to shove, some of his colleagues would almost certainly have to vote yea. He’d rather it pass in a 51-vote environment, where all of the votes could come from Democrats, than in a 60-vote environment, where at least seven Republicans would have to agree to a cloture motion.

In the same New York Times article by Nate Silver the consequences of failing to raise the debt ceiling would lead to another recession:

If the Congress does not vote to increase the debt ceiling – a statutory provision that governs how many of its debts the Treasury is allowed to pay back (but not how many obligations the United States is allowed to incur in the first place) – then the Treasury will first undertake a series of what it terms “extraordinary actions” to buy time. The “extraordinary actions” are not actually all that extraordinary – at least some of them were undertaken prior to six of the seven debt ceiling votes between 1996 and 2007.

But once the Treasury exhausts this authority, the United States would default on its debt for the first time in its history, which could have consequences like the ones that Mr. Boehner has imagined: a severe global financial crisis (possibly larger in magnitude than the one the world began experiencing in 2007 and 2008), and a significant long-term increase in the United States’ borrowing costs, which could cost it its leadership position in the global economy. Another severe recession would probably be about the best-case scenario if that were to occur.

The bill will not get to the Senate until sometime in May. When it does reach the “upper” chamber, it most likely will be loaded with hundreds of riders from the House Tea Party Republicans. The President and the Senate Democratic leaders have a limited choices. However, if that choose  to  stand their ground and push for that “clean bill”, there could be “savior”, Wall St., which stands to lose billions or more if the US  defaults on its debt. As David Dayen at FDL suggests this is a plausible solution. But is it possible  considering Obama’s inability to win at this “Congressional Game of Chicken”?