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Thread: Republicans surprised not paying for tax cuts increases deficit.

  1. #1
    Senior Member MajikMyst's Avatar
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    Angry Republicans surprised not paying for tax cuts increases deficit.

    Republicans surprised that not paying for Bush tax cuts increases deficit. CBO surprised that Republicans not familiar with mathematics.

    SURPRISED BY THE DEGREE OF SURPRISE.... The day of President Obama's inauguration, the federal budget deficit left by the Republican administration was $1.3 trillion. After some additional economy-saving measures were added to the mix, the 2009 deficit reached $1.4 trillion. Last year, things improved slightly, and the deficit fell to $1.29 trillion.

    Yesterday, the Congressional Budget Office warned lawmakers that the budget picture was poised to get worse again, projecting a $1.5 trillion deficit this year.

    Summarizing the thoughts of many, Sen. Mark Kirk (R-Ill.) told Roll Call, "I think everyone is in a collective state of shock right now over the CBO numbers."

    Really? Why is Congress so surprised? Frankly, I'm a little shocked by their collective state of shock.

    This really isn't complicated. The deficit picture was starting to improve, but congressional Republicans insisted that Bush-era tax breaks get extended for another two years. How did Republicans propose paying for these tax cuts? They didn't -- the GOP said the price tag should just be added to the deficit.

    And wouldn't you know it, that means ... I hope you're sitting down ... the deficit will go up, just as lawmakers were told it would if they cut taxes without paying for them.

    The government's budget deficit will soar to nearly $1.5 trillion this year, the nonpartisan Congressional Budget Office said Wednesday, an anticipated but politically galvanizing calculation that further intensified the partisan battle over the nation's fiscal future.

    The $1.5 trillion deficit projection is $414 billion higher than its previous estimate, in August, and reflects in part the tax cut deal last month between President Obama and Republicans.



    The fact that Congress is surprised only reinforces the fact that Republicans aren't paying close enough attention to reality. There's no great mystery here -- the deficit is going up because of the new round of tax cuts. That's what happens when one cuts taxes -- less revenue means higher deficits.

    If Republicans didn't want a higher deficit, they shouldn't have fought so hard to make it worse. They had a choice -- expensive tax breaks or deficit reduction. They made their choice, were told what the consequences would be, and are now stunned by the realization that the rules of arithmetic haven't been suspended by the GOP's force of will.

    It's unclear to me why Republicans aren't confronted with hysterical laughter when they claim credibility on fiscal issues. This is a party that inherited a massive surplus a decade ago, when we were actually paying off our debt. The GOP proceeded to squander the surplus, add $5 trillion to the debt in just eight years, and then demand Democrats clean up their mess.

    When Dems did just that and the deficit picture started to improve, Republicans then demanded tax breaks that once again made the budget shortfall worse.

    Deficit hawks that vote Republican are tragically confused. There's never been a more fiscally irresponsible political party.

    The Washington Monthly

    And you all are worried about Obama's spending?? How bout we learn basic math first.. That would be a good start..

  2. #2
    Senior Member Granite's Avatar
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    Understanding math is useless if you are disingenuous about the numbers.

    The article you quote gets some of it's information from an article written by Kevin Drum of Mother Jones. (The CBO's Crystal Ball | Mother Jones) Jones' article is in response to an article written by Avik Roy. (What’s Half a Trillion Dollars Among Friends? - By Avik Roy - The Corner - National Review Online)

    Jones made the following statement: "And where does that come from? Table A-1 in the CBO report provides the answer: nearly all of it is due to the package of tax cuts that were signed into law during the lame duck session last year."

    Roy responded with the following: "However, Kevin Drum and others are also mistaken in arguing that “virtually all of [the $500 billion difference in projections] is due to the extension of the Bush tax cuts.” Page 9 of the full CBO report shows that only $103 billion of the $390 billion is attributable to renewing the Bush tax cuts: $98 billion for “tax rates, credits, and deductions initially enacted in 2001, 2003, and 2009,” and $5 billion for estate and gift taxes.

    The rest of the provisions were unrelated to the Bush tax cuts: a patch in the Alternative Minimum Tax, a eternal budgeting device similar to the Medicare “doc fix”; a payroll tax holiday; a tax credit for purchases of equipment by businesses; and an extension of “emergency” unemployment benefits."
    The Apothecary: Shooting the CBO First and Asking Questions Later

    Drum conceded this point to Roy and amended his article.


    So, MM, the increase in the deficit is not due, solely, to the extension of the Bush-era tax cuts. In fact, a large portion is due to the concessions that Obama won from the Republicans. I think it's fair to say that the increase in the deficit falls into Obama's lap as well as the Republican's lap. But such is the nature of compromise, eh?

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    Veteran Member angryamerican's Avatar
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    The reason they are surprised is reality has sunk in. While campaigning they only talk rhetoric. Now they are faced with reality..Its their mess now. I thought they had a plan that was suppose to solve all our trouble by now...

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    Quote Originally Posted by angryamerican View Post
    I thought they had a plan that was suppose to solve all our trouble by now...
    Who told you that, Oprah?

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    Retired Admin Macduff's Avatar
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    Quote Originally Posted by Oldschool View Post
    Who told you that, Oprah?
    That's the new meme on the left. The think it was completely unfair that President Obama be expected to fulfill any kind of expectations. So their response is to create completely unrealistic expectations for the new Congress and then pout when those aren't fulfilled.

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    Banned Camp Blackjack Fever Champion, Brain Bones Champion
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    Quote Originally Posted by MajikMyst View Post
    The $1.5 trillion deficit projection is $414 billion higher than its previous estimate, in August, and reflects in part the tax cut deal last month between President Obama and Republicans.
    It's a good thing Rand paul just proposed 500 billion in cuts, then, isn't it? As my math goes, that equals a 86 billion dollar surplus that can be applied to deficit reduction. Hopefully partisan factions of our government won't stand in the way of these necessary cuts...
    Rand Paul proposes $500 billion in federal budget cuts - FOX41.com Louisville News Kentucky Indiana News Weather Sports
    Imagine that, tax cuts for american citizens more than offset with federal spending cuts. What a fabulous idea!

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    Retired Admin Macduff's Avatar
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    Funny how the deficit is only a problem when it comes to letting people keep the money they earned. But never seems to be an issue when the government wants to spend billions on so called stimulus or Obamacare.

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    Cut government spending: Not an option?

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    Veteran Member angryamerican's Avatar
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    Quote Originally Posted by AmendmentX View Post
    It's a good thing Rand paul just proposed 500 billion in cuts, then, isn't it? As my math goes, that equals a 86 billion dollar surplus that can be applied to deficit reduction. Hopefully partisan factions of our government won't stand in the way of these necessary cuts...
    Rand Paul proposes $500 billion in federal budget cuts - FOX41.com Louisville News Kentucky Indiana News Weather Sports
    Imagine that, tax cuts for american citizens more than offset with federal spending cuts. What a fabulous idea!
    Your Math might be off a bit, a 500 billion dollar reduction in spending would still leave around 1 trillion in a deficit. Not sure how you came up with 86 billion to pay off our deficit when you are still in the hole..

  10. #10
    Veteran Member angryamerican's Avatar
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    Quote Originally Posted by Macduff View Post
    Funny how the deficit is only a problem when it comes to letting people keep the money they earned. But never seems to be an issue when the government wants to spend billions on so called stimulus or Obamacare.
    People are keeping more of their money. Hell the top end tax rate was once 91% so taxes is a non-issue. As far as EARNED...depends on who or whom one is referring to. Hard to justify a lifetimes income( around 2 million) in a single year.

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