Wednesday, June 6, 2012

All That Talk About the Federal Deficit and Debt Is Just a Republi-CON CON Game

UPDATE V:  Congresses action regarding the looming taxmageddon will be prof that all that hysteria about the federal defisit and debt is just a Republi-con con game. 

"Taxmageddon is the popular nickname given to a series of policies set to lapse or take effect in January, immediately slicing more than $500 billion out of next year’s federal budget deficit. While it includes about $100 billion in spending cuts, most of the changes involve higher taxes for every American taxpayer, primarily from the expiration of President Obama’s payroll tax holiday and broad tax cuts enacted under President George W. Bush."

Read the Washington Post, CBO: Taxmageddon would bring tax pain but debt relief and The budget outlook in one graphic, with this graph:


The article notes:

"Remember: The 'extended baseline scenario' means we let the Bush tax cuts expire, the spending sequester take effect, etc. The 'alternative' scenario means we extend everything.

In the 'extended baseline scenario,' which is the one currently written into law, we don’t have a debt problem, but we have much higher taxes and, in the short-term, a likely recession. In the 'alternative' scenario, we’ve got a huge debt problem, but lower taxes and less short-term austerity. "

UPDATE IV:  Even Obamney recently admitted that balancing the federal budget would throw the U.S. "into recession or depression. So I’m not going to do that, of course."  Read the Washington Post, Mitt Romney, Keynesian, which references this comment by Jon Chait: "'Romney says this as if it’s completely obvious that reducing the deficit in the short term would throw the economy back into recession, even though he and his party have been arguing the opposite case with hysterical fervor.'"

Even Republi-cons don't believe their own lies about the myth of expansionary austerity

UPDATE III: More proof that the Republi-cons are all talk when it comes to the deficit, they're all hiding from Paul Ryan's latest budget plan.

Read the Washington Post, Paul Ryan’s budget is bad politics. Just ask Republicans.

UPDATE II: Republi-cons have never been concerned with merits of thier proposals, only the 'political possibilities.' As a result, "the budget deficit rose to 6 percent of gross domestic product in 1983 from 2.7 percent in 1980" under Reagan. Since he won re-election in 1984, Republi-cons have never been concerned about deficits, "only tax cuts mattered for political success." Read The New York Times, The Origin of Modern Republican Fiscal Policy.

UPDATE: "[A]s Republicans yell about Obama’s deficits and cry that we’re turning into Greece, Greece I tell you, all of them, all of them, propose making the deficit bigger.

And for what? For reverse Robin-Hoodism, taking from the poor and the middle class to lavish huge tax cuts on the rich.

And I believe that all of them know this, too. It’s pure hypocrisy – and it’s all in the service of class warfare waged on behalf of the top 0.1 or 0.01 percent of the income distribution."

Read The New York Times, Four Fiscal Phonies, which includes this graph showing "debt as a percentage of GDP in 2021 (using the OMB numbers (pdf) for Obama and CRFB for the others):"

"The national debt is likely to balloon under tax policies championed by three of the four major Republican candidates for president, according to an independent analysis of tax and spending proposals so far offered by the candidates.

The lone exception is Texas Rep. Ron Paul, who would pair a big reduction in tax rates with even bigger cuts in government services, slicing about $2 trillion from future borrowing.

According to the report — set for release Thursday by U.S. Budget Watch, a project of the bipartisan Committee for a Responsible Federal Budget — former Pennsylvania senator Rick Santorum and former House speaker Newt Gingrich would do the most damage to the nation’s finances, offering tax and spending policies likely to require trillions of dollars in fresh borrowing.

Both men have proposed to sharply cut taxes but have not identified spending cuts sufficient to make up for the lost cash, the report said. By 2021, the debt would rise by about $4.5 trillion under Santorum’s policies and by about $7 trillion under those advocated by Gingrich, pushing the portion of the debt held by outside investors to well over 100 percent of the nation’s economy."

Read the Washington Post, Debt will swell under top GOP hopefuls’ tax plans.

As I've said for years now, the Republi-CONs conned the tea party, there will be no balanced budget, there won't even be a $100 billion budget cut as promised in 2010. So let's admit the obvious, the Republi-CONs are not serious about deficits.