House passes debt deal

by charvaka Mon Aug 01, 2011 8:31 pm

The worst has happened -- now it is more or less clear that this deal will be signed into law. Obama has stuck the Democrats with a big loss because of his failure to handle this aggressively enough. He has no out now. He could have easily raised the debt limit, but in his reelection gamble to pivot right, he has gone way too far. My suspicion is that this will come to bite him in the ass when the Congressional committee comes back with its findings. It will either have no revenues, or it will fail in the House. Either way, mandatory spending cuts will kick in, including to Medicaid. Awful, awful result from a manufactured crisis.

http://www.nationaljournal.com/house-passes-debt-deal-action-moves-to-senate-20110801?mrefid=earthbox

by artood2 Mon Aug 01, 2011 8:48 pm

bush tax cuts will expire in 2013 and you will get revenue form there.

by charvaka Mon Aug 01, 2011 8:56 pm

artood2 wrote:bush tax cuts will expire in 2013 and you will get revenue form there.

When I say the committee will come back with no revenues, I mean that they will come back with an in toto long-term extension of the Bush tax cuts. Either that, or the package will fail in the House. If the package fails in the House, the GOP will have to fight for an extension during the election year, which is a good thing. Let them fight for tax cuts for the ~~rich~~ job-creators in a high-unemployment election year.

by Mosquito Mon Aug 01, 2011 11:10 pm

charvaka wrote:
artood2 wrote:bush tax cuts will expire in 2013 and you will get revenue form there.
When I say the committee will come back with no revenues, I mean that they will come back with an in toto long-term extension of the Bush tax cuts. Either that, or the package will fail in the House. If the package fails in the House, the GOP will have to fight for an extension during the election year, which is a good thing. Let them fight for tax cuts for the ~~rich~~ job-creators in a high-unemployment election year.

I dont think that will work. They will paint Obama as a socialist and say that he failed to create jobs and may win the election. This is what pisses me off. Economists like Krugman and Simon Johnson have been asking for bigger stimulus not in the form of tax cuts. Now the unemployment numbers are up and growth has slowed. I wish Obama pushed for this from the beginning instead of caving into the republicans and their noise.

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