Live Poll
Should the debt-ceiling be raised?
First off, this whole thing is ridiculous. The debt limit was created in order to keep Congress from having to approve each and every debt issuance by Treasury - not, as Speaker Boehner claims to "reign in government spending." Approving all those debt requests used to take up a lot of time and we all know how much Congress-people like to work. Since first being introduced it's been raised routinely and regularly (87 times) - two-thirds of the time under Republican administrations. Holding the debt limit hostage now is the act of an extreme political ideology gone mad.
Anyway, given that this *is* really happening and supposedly responsible politicians are threatening to throw the US and probably global economy into a tailspin if we don't stick it to the old, sick, young, and poor, we're left searching for ways out of this ridiculous mess. The GOP insists that no taxes can be raised. Ever. Period. This includes the premise that allowing tax cuts to expire or closing loopholes equates to raising taxes. If that inflexible position turns out to be a little flexible after all, I would propose a debt deal like this: all spending reductions (with quibbling to be done over the details, but preferably ones that INCLUDE defense, the drug war, and other corporate welfare) PLUS a permanent extension of the Bush tax cuts for earner under 250k/yr. Yes, really. All spending cuts and a huge tax decrease.
The rub? No extension of the Bush tax cuts for the top 2%-ers - or at least the removal of the leverage the GOP uses to get those tax cuts extended. Extending the tax cuts for the middle class now takes that hostage away from the GOP the next time we have to sit through a ridiculous debate about extending the Bush tax cuts. When the GOP insists we once again extend those tax cuts the Democrats will be able to ask what's in it for them?
Note that this proposal would not technically be "allowing tax cuts to expire." It would only be the removal of one (big) piece of leverage. If the GOP insists those tax rates stay low, they can win a couple more elections and do so. My real wish is that perhaps in the future, if a reasonably sane Congress ever gets elected again, we can revisit tax code revisions and social spending without so much stark raving mad rhetoric, but for now... just do what it takes to pay the damn bills!
Thanks.
-Increasingly Nervous Investor



