“No Man’s life liberty or property is safe while the legislature is in session”.

- attributed to NY State Judge Gideon Tucker

Friday, July 8, 2011

The Debt Limit Talks Accelerate

Only two days ago I wrote this post regarding the debt limit talks between Congress and Wonderboy. Since then, he's held yet another press conference after an emergency Thursday morning session, declaring that progress is being made. But he also lashed out at Republicans once again, claiming they were trying to steal money from seniors via Medicare and Social Security to give to wealthy Americans in the form of tax breaks for private jets and the like.

The guy doesn't know when to shut up, does he? Would you negotiate in good faith with a guy who demonized you in public?

Neither would I.

Still, Boehner had claimed that he was optimistic a deal will be made which he can sell to his members, including those who won't vote for tax increases. The new language being used regarding taxes is 'no net revenue increases.'

Sounds like a fig leaf for somebody. Either tax rates and items taxed increase, or they don't. Then people will behave accordingly and the federal government will still collect no more than about 18% of GDP.

I'm so sick and tired of listening to Bloomberg's liberal political retread, the wizened, not-too-bright Al Hunt, and CNBC's "Red" John Harwood telling viewers that taxes just have to be raised because you can't cut spending enough to eliminate deficits.

What nonsense! That seems to be where Democrats show their innate stupidity. They treat tax rates arithmetically, never seeming to comprehend that you get less activity of what you tax. That consumers and producers respond to minimize taxes paid, which is why the long run average is 18% of GDP.

This morning's unemployment news has apparently affected the talks. Boehner has now said no deal is in sight, while June's monthly jobs were a horrifyingly small 18,000 and the unemployment rate is now up to 9.2%.

Wonderboy's labor secretary was on Bloomberg this morning blaming Bush and calling for even more "infrastructure stimulus" spending. The woman just has no clue.

Personally, I was not happy at the thought of a last-minute, desperate grand bargain on the tax code, spending cuts and the debt limit. Too much badly-designed legislation too quickly, all to satisfy a megalomanical president with no real legislative or governing experience.

Oddly, I'm feeling less worried now that Boehner issued his statement that no deal is now imminent.

Allegedly, there's supposed to be another meeting between Congressional leaders and Wonderboy on Sunday.

Stay tuned....

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