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Obama Offered Entitlement Reform & Revenue Increases


By John Martin - Posted on 05 August 2011

And John Boehner walked away.

Here's an excerpt from the depressing, humiliating and completely unavoidable press release put out by Standard & Poor's just moments ago:

"We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress containing the growth in public spending, especially on entitlements, or on reaching an agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process."

75% of the federal budget is Defense, Medicare and Social Security. Obama offered John Boehner a $4 trillion debt-reduction deal that would have raised the Medicare retirement age to 67-- an unprecidented proposal by any President, much less a supposedly "liberal" one. 

The only reason why John Boehner wouldn't accept it is because Obama also proposed raising revenues. He proposed moderate tax increases for the richest people ever to walk the earth, who have benefitted most from living in our country. We're not talking the 90%, 70%, or even 50% marginal tax rates of previous decades. We're talking tax rates similar to what people paid during the Clinton years.

President Obama offered a package that was FAR more fiscally conservative than anything the Republicans were willing to get behind. Now, once again, we're all paying the price.

Dominoes anyone?

~ The US Postal Service warned on Friday that it could default on payments it owes the federal government, just days after the US government itself narrowly averted a default... said it would not be able to make a legally required $5.5 billion payment in September to a health-benefits trust fund.

~ Government-controlled mortgage company Fannie Mae said Friday that its second-quarter loss widened... seeks $5.1B more from taxpayers.

*******

S&P down grade:

A clean debt ceiling bill and a "big" debt reduction plan such as Obama was proposing could have averted this. Note that S&P in their statement singles out the gridlock surrounding the debt limit debate, in addition to the absence of revenues (mentioning it twice), as a contributing factor.

 

A statement by John Boehner tonight says the Republicans are outnumbered in Washington.

“Republicans remain committed to ensuring the United States always meets its obligations. Though we are outnumbered in Washington, we will continue to press Democrats to join us in taking meaningful steps to rein in our debt and deficits.”

From last count there are 240 Republicans, 193 Democrats, 2 vacancies in the House of  Representatives.

In the Senate there are 51 Republicans, 47 Democrats, 2 Independents

Total 287 Republicans and 240 Democrats

Now, it's either one of three things... his core problem is he can't count, he has a credibility problem, or he thinks we are all idiots.

 

 

It's all three things, but mostly the last two.

What good does it do to raise income rates on the rich when the majority of these folks do not get their money through active income but rather investments. That is why you do.t hear this group complaining. It doesn't apply to them. It the capital gains rate they are paying.

The most oft-used figure for revenue increases by raising rates on the rich is 700 Billion dollars.  A few billion here, and few billion there, and we're talking about some serious money. ;-)

Although I don't think it was included in this proposal, President Obama has proposed raising the capital gains tax rates. 

Yes but you remove the Bush tax cuts for the lower and middle class you are talking 3 TRILLION - now that is serious money.

Both figures are for a 10 year period - not annual revenue

From the Duplicity Part 4,158 Department:  Mitt Romney's pitch to S&P for the Massachussetts rating was based on his state having raised taxes.

To wit -

"Gov. Mitt Romney lobbied the credit ratings agency Standard & Poor’s in 2004 to raise his state’s credit rating in part because Massachusetts had raised taxes during an economic downturn two years earlier.

The claim was part of a presentation to the ratings agency obtained by POLITICO under a state freedom of information law from the Massachusetts Executive Office of Administration and Finance. The Nov. 4 presentation, stamped “confidential,” helped persuade S&P to raise the state’s grade and handed Romney the perfect talking point for last week’s humiliating national downgrade by the same agency."


Full article at http://www.politico.com/news/stories/0811/61066.html

Surprise, surprise...He raised taxes and failed to create jobs (MA ranked 47th of 50 states) during his term of governor in addition to his record of liquidating companies while with Bain.

 

Well it is good news that Social Security benefits will be going up! it's about time!  I was looking at a discussion  or video that Michael Moore was having with Hannity on Fox news. My heart was bleeding for Michael because he was trying to convince Mr. Hannity that Government has a role in helping it's citizens ( The American People );  on the other hand, Hannity was bent on the fact that depending on Government doesn't work; Mr Hannity went on to say that's the reason why the American people are disillusioned or disappointed is because they are looking to a system to help them instead of relying on themselves and or great charity to help them in times of need. I have never seen Michael Moore looked so ruffled in these debates before; usually Michael is confident and unphased by some of these heartless media people. However, he seemed to be taken off balance by Mr. Hannity's comments. I am just so discontent in my heart on how we can be so ingrained with ideology that it overrides our desire for true compassion for our sisters and brothers in crisis. It is a sad state  to see Americans against Americans. We no longer hold the principle that we are our brother's keeper. I kept hearing over and over in the debate between Hannity and Michael about how the poor has a large screen TV and other irrelevant things in order to disregard that poverty actually exist.

 

I guess I am in a low mood today and don't have much perspective on the current state that we are in. People's hearts are like a shell, numb and disconnected!!  Well I will find ways to renew my faith in humanity.

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