Bush Tax Cuts

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Good old Mitch McConnell. You can always count on him for the IOKIYAR argument. He seems to have a bit of a memory problem when it comes to the use of reconciliation. Of course we can count on John King not to ask him about it either. Sadly that is all too typical of the media.

From Media Matters--LA Times reported McConnell's criticism of reconciliation without noting his past support of process:

The Los Angeles Times reported Sen. Mitch McConnell's criticism of Democrats' potential use of the reconciliation process to pass health-care reform without noting that he repeatedly voted in favor of using reconciliation to pass the Bush tax cuts.

Transcript:

KING: Well, I want you to listen, not to the president, but I want you to listen to your own voice. You spoke here in Washington on Friday to a conservative gathering about the health care debate and you voiced quiet confidence about the Republican position. Let's listen.

(BEGIN VIDEO CLIP)

MCCONNELL: We're seeing it today in the debate over health care. Ordinary Americans speaking their minds, dismissed and ridiculed by people in power. The reason they are doing this is clear, because we're winning the argument.

(END VIDEO CLIP)

KING: Define "winning" for me. Is winning blocking the Democratic plans and ending this year without a health care reform bill reaching the president's desk?

MCCONNELL: No, winning is stopping and starting over and getting it right. I don't know anybody in my Republican conference in the Senate who's in favor of doing nothing on health care. We obviously have a cost problem and we have an access problem.

But there's a very big difference about whether or not it's appropriate to have a major rewrite of about one sixth of our economy in the process. My members just don't think that's the right way to go. We want to fix the health care system, but we don't want to do or have a $1 trillion over 10-year cut in Medicare, not to make Medicare more sustainable, but to start a new program for others.

We don't think it's a good idea to raise taxes on small businesses and on individuals in the heart of a recession. There are some serious differences about what ought to be done. KING: I saw your speech just before I went over to see the president. So I asked him about it. Listen to this exchange.

(BEGIN VIDEO CLIP)

KING: Mitch McConnell told the conservative group, we're winning the health care debate. What do you think of that?

OBAMA: Well, you know, they were saying they were winning during the election too.

(END VIDEO CLIP)

KING: A confident president there, saying he will get health care. He also said in an interview with Univision that's airing this morning that he would love Republican votes, but I don't count on them. I don't count on them. Mr. Leader, let me ask you, if they go forward and they do this with all Democrats, what does that do to the environment down the road? Some Republicans have said well then don't expect our cooperation on financial reform. Don't expect our cooperation on Afghanistan. Is this one issue health care, or could it poison the well?

MCCONNELL: Look, it's not about winning or losing, it's not about the president, it's about American health care and getting it right. And if they try to use this legislative loophole called reconciliation, what they'll be doing, in effect, is jamming through a proposal to rewrite the economy with about 24 hours of debate.

Basically, a legislative loophole to do a massive rewrite of one sixth of our economy. I think that that will produce a very, very severe reaction among the American people, who are already, according to the Gallup poll, not in favor of the direction we're taking on this very important issue.

KING: Help me understand if there's a gap between the audience in the sense that you say here, it's not about winning or losing, but you were very clear to that conservative group, we're winning the argument.

MCCONNELL: Well, by winning, the definition of winning is to stop and start over and do it right.



Deficit Hawks

I always ask teabaggers when I run into them, how any federal deficit has hurt them personally? They can't respond to that. They have no answer except to cry "socialism."

Sure, it's much better to have a surplus like Clinton did, but these same deficit hawks were quite happy when the Bush tax cuts came down and the rich got richer and the economy collapsed. But I ask again: How has deficit spending hurt you?

Long term debt is nothing to sneeze at, but when we're talking about reforming health care for America, who really cares if it's $700 billion for 10 years or $1 trillion or $1.5 trillion? (By the way, I love the way the press never tells America what it would cost per year because then the figure doesn't sound so bad. They make it appear that the cost is $700 or 900 billion a year.)

Go ask a teabagger about costs and see what they say. What will it matter in the long run? We can figure out how to pay for it. Even FDR was hampered by these deficit hawks when he brought the country out of the Great Depression, and now these deficit hawks almost put us back into a Depression because they were so deficit crazy.

The deficit hawk is code for keeping the rich---rich. And then finding ways to keep their money pouring in.

Digby has a great post up today about costs:

The Peterson Foundation is ready with the news. They released a report (pdf) on the Kennedy Bill today...

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The fact is that if all these benefits were actually realized, the country would be far, far better off, both financially and otherwise. Nobody expects that spending will go down, merely that the growth in spending will be less. Therefore, if the government finds itself having to pay out all that money in health care benefits, this healthier, more prosperous nation can surely afford to levy the necessary taxes to pay for it, right?

I don't give a damn what this is going to cost in 2029. And nobody else should either because these projections are based on bullshit. Nobody can see that far into the future. If we can pay for it now, then we should do it now. And if it costs more down the line, then we will find a way to pay for it. This nonsensical obsession with deficits decades into the future is nothing more than a scam designed to keep the gravy train going for the wealthiest Americans at the expense of everyone else.

If these numbers are correct, then the fiscal scolds are going to have to argue that people today have to die so that wealthy people in 2029 don't have to pay higher taxes. It's that simple.

The president is also talking about having a deficit neutral bill, but he's being attacked for it by the usual suspects.


nationaldebt_42d6b.jpg

Citizens for Tax Justice point out what I was saying just the other day: We only hear all this crying and moaning about the deficit when it's something for regular working people, and not a powerful lobby. And of course, the Republican'ts are right out there in front of the Hypocrisy Parade:

And yet, many of the lawmakers who argue that the health care reform legislation is “too costly” are the same lawmakers who supported the Bush tax cuts.

Their own voting record demonstrates that health care reform is not a matter of costs, but a matter of priorities.

It’s difficult to see how the Bush tax cuts could provide us with two and a half times the benefits of health care reform. In 2010, when all the Bush tax cuts are finally phased in, a staggering 52.5 percent of the benefits will go to the richest 5 percent of taxpayers.

President Bush and his supporters argued that these high-income tax cuts would benefit everybody because they would unleash investment that would spark widespread economic prosperity. There seems to be no evidence of this, particularly given the collapse of the economy at the end of the Bush years.

The tax legislation enacted under President George W. Bush from 2001 through 2006 will cost $2.48
trillion over the 2001-2010 period.

This includes the revenue loss of $2.11 trillion that results directly from the Bush tax cuts as well as the $379 billion in additional interest payments on the national debt that we must make since the tax cuts were deficit-financed.

[...] Over the upcoming decade (2010-2019), the costs of the health care proposals approved by three committees in the U.S. House of Representatives are projected to be around $1 trillion. (One committee trimmed the costs of its health care bill below that amount, but an official estimate of the cost reductions was not available at the time of this writing.)

The chairmen of the three House committees have explicitly stated that their goal is a final bill that
is deficit-neutral in the decade following enactment.

It’s unclear if they have accomplished this yet, since the Congressional Budget Office has not yet issued final cost estimates of the bills, and the legislation is likely to change before the full House votes on a final bill. But President Obama and
Democratic leaders have also committed to ensuring that health care reform will not increase the budget deficit.

Under the House bills, roughly half of the costs would be offset with savings in our existing health care programs, while the other half would be offset with a surcharge on the incomes of wealthy taxpayers.

In contrast, President Bush and his allies in Congress never even attempted to replace the revenue lost as a result of their enormous tax cuts. The Bush tax cuts were deficit-financed, which increased the national debt and resulted in greater interest payments on that debt, as already explained.

These figures make clear that costs cannot be the real concern of lawmakers who oppose the House health care legislation and yet supported the Bush tax cuts. Their position seems to be that showering benefits on the wealthiest five percent of taxpayers and leaving the bill for future generations is preferable to making health care available for all at a much lower cost and paying that cost up front. That demonstrates a different set of priorities than most Americans have, but it doesn’t demonstrate much concern about costs.


McCain Issues Challenge: Name a Single Issue I've Changed On

For the second time in six weeks, John McCain has challenged the press and the public to "name a single issue" where's he changed positions since 2000. Sadly for the supposed maverick, his growing list of reversals, flip-flops and turnabouts now numbers in the dozens.

None of which deterred McCain from pretending otherwise in an interview Wednesday with the CBS affiliate in Washington, DC. Asked, "where is the John McCain from 2000?" and "has something changed," Mr. Straight Talk responded:

"You’ll have to tell me what’s changed. I love it when they say, 'Oh McCain has changed.' And I say, 'What have I changed on?' They can’t name a single issue or they’ll name an issue and it's false. I’m the same guy. I’m proud of our campaign."

Last month, McCain threw down the same gauntlet during his disastrous appearance on ABC's The View. When host Joy Behar lamented, "I don’t see the old John McCain…I understand why - you want to get elected," McCain instinctively went to battle stations:

"I’ve been through this litany before, where I say, 'ok, what specific area have I quote changed?' Nobody can name it...I am the same person and I have the same principles."

As it turns out, not so much.

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