Debt Deal Emerges
http://thedianerehmshow.org/shows/2011-08-02/debt-deal-emerges
It’s August 2nd, and lawmakers and the president have until midnight to raise the debt ceiling, or risk default. They’re on track to do so. The House passed the debt limit deal last night. The Senate votes this afternoon. The legislation will enact spending cuts immediately. And a bipartisan commission will consider tax reform and revenue adjustments over the long term. But just because the deal is on track doesn’t mean it’s popular. It faces opposition from both the left and the right, for different reasons. We hear reaction to the emerging debt deal and take a close-up look at its details.
Guests
Susan Page
Washington bureau chief for USA Today.
David Winston
republican strategist and president of the Winston Group, and CBS News consultant. Served as a strategic adviser to House and Senate Republican Leadership for the past 12 years.
Matt Kibbe
president and CEO of FreedomWorks and co-author with former House Majority Leader Dick Armey of the book, "Give Us Liberty: A Tea Party Manifesto."
Katrina vanden Heuvel
editor and publisher of The Nation, writes a weekly column for The Washington Post.
Comments
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I wrote an email to the Obama 2012 campaign yesterday telling them, as a life-long liberal Democrat, I would not be supporting the President for re-election. I feel like I've been sold out by a weak Democratic Party lacking in vision and strategy.
There are few on Capitol Hill or 1600 Penn. Ave. who are willing to put their positions of power on the line to stand up for middle class Americans (Minn. Rep. Keith Ellison, for example, who spoke on ATC yesterday). With the born-again Tea Party-ers in charge, the middle class will sink into poverty, particularly if they ever get sick, while the rich keep there tax cuts and second (or third) homes and corporate America laughs all the way to the bank.
BTW - I think you need more guests like Katrina. She and EJ Dionne are the only truly liberal voices I hear on your show. Your usual formula of two centrists and one right-winger is not a balanced format, even if it does satisfy Republican critics of NPR.
dhupp: foreign aid is tiny compared to the debt. The wars are foreign. and they caused 4 trillion of the debt. (at least)Maybe you should focus on ending oil wars. Peace is cheaper.
I am one of those "Americans" that everyone keeps talking about and quoting, but never asked. One of the middle class that is carrying the country on my back. Are there any numbers out there that show how many "jobs" the upper 2% have created..IN THE US?" An independent for life, I am fast developing a "no incumbent re-elected" philosophy and end Crony Capitalism in this country.
The American people care about jobs. The tax reform needs to address the incentives the encourage corporations to move the jobs out of the country and force highly profitable companies such as GE that did not pay any taxes and is moving advanced manufacturing jobs to China to create jobs and pay taxes.
I think the Tea Party and Republicans are hiding behind the "no new taxes" to protect corporations.
They do not have a mandate. Most people are moderates and we want the best ideas from both parties. We expect them to work together and to compromise. We want a balanced approach and a plan to how we will grow and become more competitive.
My husband lost his job along with 30 to 40% of the staff over a 10 year period while the top executives and investment bankers took home huge compensation packages taxed at 15%. They were able to do this because of deregulation of the financial sector. He worked for one of those 'too big to fail banks' who operated from a position of greed and power.
When this bank cut almost their entire IT staff, that had designed their IT software systems that are still operational and sold to other banks, the bank received TAX BREAKS for sending jobs overseas. This same bank gave their top executives and investment banker top of the line health care benefits, vacation and sick time, and pension while their rank and file assumed more of the cost of their health insurance & created a climate of fear re: use of vacation and sick time.
Americans understand that they have been taken advantage (to use a nice term) of by big business and the lack of a real economic plan that takes into consideration the needs of the average American not just corporate leaders. Most American want a balanced approach of increased tax revenues and reasonable spending cuts.
The White House needs to expose the truth that our tax rates are the lowest of developed countries when looked at GNP; we only have 14.5% tax in relationship to GNP and our federal budget is 24% of GNP. If they understand that lowering the tax rate on the wealthiest citizens to 25% without deduction will result in them paying more taxes. The average billionaire, the top 0.01%, pays only 14% in federal taxes due to their income coming in the form of capital gains. The top 1% pays only 22% of their income in federal taxes. G.E., Apple, HP, Oil companies are paying very little in taxes.
My husband lost his job along with 30 to 40% of the staff over a 10 year period while the top executives and investment bankers took home huge compensation packages taxed at 15%. They were able to do this because of deregulation of the financial sector. He worked for one of those 'too big to fail banks' who operated from a position of greed and power.
When this bank cut almost their entire IT staff, that had designed their IT software systems that are still operational and sold to other banks, the bank received TAX BREAKS for sending jobs overseas. This same bank gave their top executives and investment banker top of the line health care benefits, vacation and sick time, and pension while their rank and file assumed more of the cost of their health insurance & created a climate of fear re: use of vacation and sick time.
Americans understand that they have been taken advantage (to use a nice term) of by big business and the lack of a real economic plan that takes into consideration the needs of the average American not just corporate leaders. Most American want a balanced approach of increased tax revenues and reasonable spending cuts.
The White House needs to expose the truth that our tax rates are the lowest of developed countries when looked at GNP; we only have 14.5% tax in relationship to GNP and our federal budget is 24% of GNP. If they understand that lowering the tax rate on the wealthiest citizens to 25% without deduction will result in them paying more taxes. The average billionaire, the top 0.01%, pays only 14% in federal taxes due to their income coming in the form of capital gains. The top 1% pays only 22% of their income in federal taxes. G.E., Apple, HP, Oil companies are paying very little in taxes.
The wealthiest citizens and corporations don't care about us. They only care about themselves. They are paying big bucks to write legislation that only takes care of them not the average American. They have directly and indirectly supported the right wing.
It's time for the wealthiest citizens and corporate executives to take responsibility for their actions for causing the national economic disaster. They use our roads, bridges, airports, ports, military, police, firefighters, military and schools yet they don't want to pay their fair share. Can you imagine what they would pay if they had to pay fees to use each service/products just like us? They want the benefits of a free society without paying for it. They aren't patriots their selfish users of America.
Companies are making money because employees are doing their old jobs plus the work of the people who have been laid off, and for lower wages and longer hours.
Grace Billlings wrote:
"When President Clinton left office, the country had a surplus. President Bush got us into this mess by his tax cuts and two unfunded wars. President Obama inherited a disaster and continues to take the blame for what is going on now."
Obama was hired by the American people to improve that. He hasn't done it.
I think the Tea Party just energized the democratic center. No one wants to feel as if they have been pushed around. The democrats were spanked for pushing through the health care overhaul, and this is no different. It takes quite a bit to get someone like me truly angry. The "no compromise" position has GOT to go. I feel like moving to a more sane country I feel so embarrassed by Congress.
None of the panelist mention that the U. S. Corporations that are not paying their fair share are creating jobs all around the world, just not in the U. S.
We cost them too much... go figure.
My husband is a partner in a small business in Michigan that has been in operation since January 01, 2001. They have grown every year without layoffs and have consistently put money back into the business to grow it. They have never whined about tax breaks, they just made sure they provided superior service, while investing in their company. They know that investing money (i.e. SPENDING) helps grow the business. That is a good model for our government: investing in the infrastructure will grow the economy.
When we vote we should remember this:
Clinton in 8 years raised taxes and created more jobs than Reagan and G H W Bush and G W Bush in combined 20 years as presidents..
Obama in his first 2 years created more jobs than GW Bush in 8.
Diane and today's guests referred to the "commission" established by the debt limit agreement, which is not the correct terminology. Rather than a commission, the agreement establishes a joint COMMITTEE of the Congress, composed of Members of both the House of Representatives and the Senate. By contrast, a commission is usually considered to be an independent establishment in the executive branch (see section 104 of title 5, United States Code) unless otherwise specified in the law creating it, and is typically composed of members appointed by the President.
You want the RICH to pay taxes then tell your rep or senator to vote the Fair Tax in and everyone will benefit.
This situation is not without historical precedent. Louis XVI funded a war and cut taxes which led to the collapse of France during his reign. there is a third part of that history on whose precipice we currently stand. I hear the whetstone on the guillotine if congress keeps fiddling and blaming everyone else.
Diane -
As usual, both of your guests represent the party line and are wrong or missing key points:
- When the Republican says the Bush tax cuts created all that revenue, he's omitting the fact that is was all a mirage created by a huge bubble that all went away and more when the bubble burst. Ask him to demonstrate any other time when pure supply side economics worked for us over a 10-20 year period.
- When the Democrat talks about services being cut and that Social Security isn't contributing to any deficit, she's ignoring that every non-partisan study shows that we have a huge debt problem that's exploding and that SS will be a big driver of that starting in just a few years. Ask her the question what is the right level of debt for this country in 10 years and how she proposes to get us there?
Diane -
As usual, both of your guests represent the party line and are wrong or missing key points:
- When the Republican says the Bush tax cuts created all that revenue, he's omitting the fact that is was all a mirage created by a huge bubble that all went away and more when the bubble burst. Ask him to demonstrate any other time when pure supply side economics worked for us over a 10-20 year period.
- When the Democrat talks about services being cut and that Social Security isn't contributing to any deficit, she's ignoring that every non-partisan study shows that we have a huge debt problem that's exploding and that SS will be a big driver of that starting in just a few years. Ask her the question what is the right level of debt for this country in 10 years and how she proposes to get us there?
Our Oligarchs should adopt "Let them eat cake" motto.
I am a Republican. I am so disappointed. Americans are no longer ignorant to the games politicians play with our lives. I cringe everytime a politician states they're doing whats best for Americans. We do not believe everything we hear just because a politician states it. During the 2012 elections. I will not forget the games the Republicans played during this crisis.
Diane, I think that Americans are tired of the delay. We are weary from not knowing about our future. We have been through enough with the lack of jobs and the silliness on Capitol Hill.The world does not seem to make sense--our Department of Justice hounds sports icons who hurt only themselves yet does not approach those who caused the mortgage crisis even when they are known to have lied to Congress. (Goldman Sachs) The very organizations that considered the toxic mortgage securities to be AAA are allowed to rate down the United States because Congress' debt ceiling legislation does not do enough according to them. (Moodys and Standard and Poors) Back to the debt ceiling--the stress in American lives is real. It is reflected in the 5 % savings last month by Americans afraid to buy anything because Congress might not pass the debt ceiling legislation. We are a nation that can be called to action to defend or to work with leadership. Every Senator and Congress member should be reminded that they represent not just those folks back home who voted them in--but every American. Thank you for providing a forum.
A socio-economic system lasts only as long as it is beneficial for majority of its participants.
The goal of any political party is to try and make the apposing party a one term elected congressman or president. Get off it Diane it's just a stupid talking point you make over and over because you support president Obama.
What are Matt Kibbe's credentials to speak so authoritatively about the economy, how to fix it, the effect of taxation, etc?
monte - there is such thing as loyal and disloyal opposition. When crisis occurs the well being of a country should preempt political aspirations. Republicans are disloyal opposition and their stance is unprecedented by American political standards. ideological fanaticism is detrimental for our well being.
I don't think Ronal Reagan would win primaries in the present Republican party. He would be judged as too accommodating and compromising.
Hey monte, don't look now but I think that statement makes you a racist. Just ask Grady Lee Coward.
"monte - there is such thing as loyal and disloyal opposition. When crisis occurs the well being of a country should preempt political aspirations. "
Problem is EVERYTHING is a crisis - even when it isn't. Sorry, sane, Rahm let the cat out of the bag when he said, "never let a good crisis go to waste".
The assertion that the 2010 election "proved" that Americans embrace the extreme economic positions of the "Right," much less the "Tea" Party, such as no tax increases - particularly on those making more than $1 million and corporations, such as Exxon-Mobil, which are setting record profit after record profit - is not only absurd and patently false, but offensive. This very much includes us independents - and the same applies to "social" issues.
The reason these people were successful in taking the House of Representatives, along with state legislatures and governors' mansions across the country (in a reapportionment year), was because widespread voter disenchantment with Barack Obama resulted in a substantial number simply not voting - manifestly NOT that we voted for these sociopaths, misanthropes and bigots.
In addition, having the temerity to state that the current situation "proves" that Keynesian economics is a failure is likewise absurd; indeed, it is analogous to kicking a guy in the teeth, then criticizing him for mumbling. The "failure" here is in how the money was utilized - bailing-out the banks (largely responsible for this economic debacle), rather than putting people directly to work repairing our decaying infrastructure, for example.
It is insanity to be cutting programs that actually produce employment, but not increasing revenue. The last caller who cited David Cay Johnston (whom you should have had as part of this discussion) and Dr. Paul Krugman was spot-on. Perhaps you can have Professor Johnston on this program in the near-term.
Finally, you ought to soon schedule a program on the well-documented and widespread voter suppression now taking place amongst virtually every state the GOP - "Tea" Party cartel took control of in 2010.
ecgberht, G.L.H. is one of those people who has carried around rage and hate so long that he wears it like a comfortable jacket. Obviously he has become everything that he claims to despise, we can only pity him.
Hey ecgberht. You made your point, let it go. Unless you have something constructive to contribute to this discussion sit on your hands. Grady should not have played the racist card, but your continual beating that horse only damages your credibility, not his.
I am impressed with your ability to deal with people lying. You are respectful and courteous. David Winston says that when Bush tax cuts were put in place tax revenues were greater by 800 billion. If he said this HE HAS NO SHAME!!! He may have said the total was 800 billion but it seemed to me he said the previous. Either way is there any way that anyone there can research where he can come up with numbers like this. If these numbers could be supported then we would have to revise our perception of tax cuts other than that he is being absolutely disgraceful.