Tag Archives: Budget Cuts

April 14, 2011 · 8:37 pm

Woe to You, Legislators! Or Ayn Rand vs the Bible

Great Blog post from Jim Wallis at Sojourners….

I’m not much for organized religion, but I like a lot of what this guy has to say…

I’ll let the excerpt speak for itself and encourage you to click the link to his full post…

It is reported that Congressman Paul Ryan makes every member of his staff read philosopher Ayn Rand, the shameless promoter of the gospel of aggressive self-interest. This makes sense to me as I read Congressman Ryan’s new budget proposal. I wish he had his staff reading the Bible instead.

While widely lauded by conservatives, Congressman Ryan’s budget isn’t really about deficit reduction. It’s about choices — choices that will determine what kind of a country we become. And Paul Ryan has made the choice to hurt people who don’t have the political clout to defend themselves. Two-thirds of the long-term budget cuts that Ryan proposed are directed at modest and low-income people, as well as the poorest of the poor at home and abroad. At the same time, he proposed tax cuts up to 30 percent for some of our country’s wealthiest corporations. Let me say that again: Two-thirds of the cuts come at the expense of already struggling people and families, while corporations posting record profits get tax breaks. In short, the most vulnerable members of society are being attacked by Ryan and his supporters. This makes them bullies.

In dramatic contrast, Ryan has chosen to help the people who need help the least. Wealthy individuals and companies reap a windfall of benefits in Ryan’s plan — with tax cuts and breaks, continued subsidies and loopholes for every powerful special interest, and increased corporate welfare payments from the government. Congressman Ryan and his supporters have carefully and faithfully rewarded the rich people who make their campaign contributions, and, in most cases, have also rewarded themselves as rich people. This makes them corrupt.

And, as self-professed budget hawks, they have completely ignored the most consistently egregious, wasteful, and morally compromised area of the whole federal budget — our endless and unaccountable military spending. Paul Ryan and the Republicans would cut nothing from the Pentagon profligacy. This makes them hypocrites.

via Woe to You, Legislators! – Jim Wallis – God’s Politics Blog.

Leave a comment

Filed under Politics, Religion, The Economy

Tagged as , , , , , , , , ,

April 13, 2011 · 11:10 pm

Daily Kos: Introducing the People’s Budget

Now, we’re talking…

This is the kind of budget I could really support!

From DailyKos:

One of the complaints the progressive blogosphere commonly levels against the Democratic leadership in DC is about negotiating strategy. Generally, the complaint is that the Democratic leadership in Congress and in the White House make opening bids that are already compromises, which results in final legislative deals skewing further to the right than necessary. Perhaps the most frequent specific example of this complaint is that Democrats in Congress should have started the health care debate by proposing a single-payer plan, and might have ended up with a public option in the final bill as a result.

Whether or not you agree with that complaint in either the general or the specific, if it is applied to the budget fight the Democratic leadership in DC should have started with The People’s Budget (PDF), which the Congressional Progressive Caucus introduced today. It’s a budget that produces a surplus by 2021 without cutting services for the poor and middle-class. It thus provides a stark contrast with the recent proposal by Rep. Paul Ryan, and a left-flank to the principles outlined by President Obama.

Here’s a general overview of the People’s Budget:

Reduces unemployment—and thus the deficit—through extensive investment in infrastructure, clean energy, transportation and education;

Ends almost all the Bush tax cuts, creates new tax brackets for millionaires and enacting new fees on Wall Street;

Full American military withdrawal from Iraq and Afghanistan, along with other reductions in military spending;

Ends subsidies for non-renewable energy;

Lowers health care costs by enacting a public option and negotiating Rx payments with pharmaceutical companies;

Raises the taxable maximum income for Social Security Withholding

via Daily Kos: Introducing the People’s Budget.

Leave a comment

Filed under Politics, The Economy

Tagged as , , , , , , , ,

April 13, 2011 · 10:49 pm

12 Tax-Dodging Corporations Spent $1 Billion To Influence Washington Over The Last Decade

I’m glad people are starting to call this out…

The question is, will it do any good?

Or have they already bought the government….

From ThinkProgress.org:

A new report by Public Campaign examines how these major corporations have influenced Congress to craft a tax code that lets them get away with making so much money and paying so little taxes in return. In its report, “The Artful Dodgers,” Public Campaign juxtaposes the limited tax liability of dozen major corporations with the companies’ campaign contributions and lobbying expenditures, which amount to more than a billion dollars over the last decade:

EXXON MOBIL: The oil giant that was the world’s most profitable corporation in 2008 has spent $5.7 million in campaign contributions over the last ten years and $138 million in lobbying expenditures. Its federal corporate income tax liabilities for 2009? Absolutely nothing. Not only did it pay nothing, but it also received a tax rebate the same year of $156 million.

CHEVRON: Chevron spent $4.4 million in campaign contributions and $91 million in lobbying expenditures over the last decade. It received a tax refund of $19 million in 2009 while making $10 billion in profits and $324 million in government contracts in 2008.

CONOCOPHILLIPS: The Texas-based gasoline giant spent $2.5 million in campaign contributions and $63 million in lobbying expenditures over the last decade. It received “$451 million through the oil and gas manufacturing deduction,” a special tax break, between 2007 and 2009, despite $16 billion in profits over the same period of time.

VALERO ENERGY: Valero spent $4.1 million in campaign contributions and $4.8 million in lobbying expenditures from 2001 to 2010. It received a $157 million tax rebate in 2009 despite $68 billion in sales during the same year. It received “$134 million through the oil and gas manufacturing deduction” over the last three years.

BANK OF AMERICA: Bank of America employees contributed $11 million to federal political campaigns from 2001 to 2010 and spent $24 million lobbying over the same period of time. It made $4.4 billion in profits in 2010 while receiving a tax refund of $1.9 billion.

CITIGROUP: Citigroup employees contributed $15 million to federal political campaigns from 2001 to 2010 and spent $62 million lobbying over the same period of time. It made $4 billion in profits in 2010 while paying absolutely nothing in federal corporate income taxes. It also received a $1.9 billion tax refund.

GOLDMAN SACHS: The mega-bank Goldman Sachs, which is often called “Government Sachs” in insider circles because of its clout over Washington, spent $22 million in campaign contributions and $21 million in lobbying over the last decade. It paid an ultra-low tax rate of 1.1 percent in 2008, while also receiving $800 billion in governmentloans to help weather the financial crisis.

BOEING: The aviation and defense contractor giant gave $10 million in contributions and $115 million in lobbying expenditures over the last decade. It paid a grand total of nothing in federal corporate income taxes in 2010 and received a $124 million tax refund.

FEDEX: FedEx spent $8.7 million in campaign contributions and $71 million in lobbying expenditures from 2001 to 2010. It paid a .0005 percent effective tax rate recently, actually spending 42 times as much on lobbying Congress as it did paying taxes. To do this it utilizes 21 tax havens.

CARNIVAL: The cruise line paid $1.7 million in campaign contributions and $1.6 million in lobbying over the past ten years. Despite the relatively low amount of money it spent influencing Washington, it has gotten away with a super-low tax rate. Over the past five years, its federal corporate income tax rate has been an effective 1.1 percent.

VERIZON: Verizon spent $12 million in campaign contributions and $131 million in lobbying expenditures over the past decade. It paid absolutely nothing in federal corporate income taxes over the past two years and $488 million in government contracts in 2008; in 2010, it made $12 billion in profits.

GENERAL ELECTRIC: General Electric spent $13 million in campaign contributions and $205 million in lobbying expenditures over the last decade while netting a tax refund of $4.1 billion over the past five years. It made $26 billion in profits over the same time period.

The amount of money that taxpayers are losing from the tax dodging by these major corporations is enormous. For example, if five of the nation’s biggest banks paid their taxes at the full rate, we could re-hire every single one of the 132,000 teachers laid off during the recession — twice.

via ThinkProgress » 12 Tax-Dodging Corporations Spent $1 Billion To Influence Washington Over The Last Decade.

Leave a comment

Filed under Politics, The Economy

Tagged as , , , , , , , , , , ,

April 13, 2011 · 10:44 pm

ThinkProgress » CBO: Budget Deal Cuts ‘Less Than 1 Percent’ Of The $38.5 Billion Claimed

This story is getting more and more interesting…

It seems Washington has learned some accounting tricks from Hollywood…

From ThinkProgress.org:

Republicans and President Obama have been hailing last week’s shutdown-averting government funding deal as the “largest spending cut in history,” but as details about the package emerged, analysts realized that deal’s supporters were greatly overselling the purported $38.5 billion in cuts. And today, the Congressional Budget Office finds that the deal would shave just $352 million from the deficit in the next six months — “less than 1 percent of the $38 billion in claimed savings,” the AP reports:

The Congressional Budget Office estimate shows that compared with current spending rates the spending bill due for a House vote Thursday would pare just $352 million from the deficit through Sept. 30. About $8 billion in cuts to domestic programs and foreign aid are offset by nearly equal increases in defense spending. […]

The CBO study confirms that the measure trims $38 billion in new spending authority, but many of the cuts come in slow-spending accounts like water-and-sewer grants that don’t have an immediate deficit impact.

While the CBO study lends credence to the theory that President Obama slyly deflected the worst of the cuts, the fact remains that the cuts will be harmful to the economy and to the people who depend on valuable social safety net programs that will have their budgets cut. Moreover, as the Wonk Room’s Ben Armbruster explains, the deal also leaves defense spending largely untouched. So while the deal cuts domestic social spending, much of these savings are wiped out by inflated defense spending.

via ThinkProgress » CBO: Budget Deal Cuts ‘Less Than 1 Percent’ Of The $38.5 Billion Claimed.

Leave a comment

Filed under Politics, The Economy

Tagged as , , , , , , , , , ,

April 13, 2011 · 10:38 pm

Budget Deal Only Actually Cut $14.7, Not $40 Billion. Does Boehner Realize This Yet?

Looks like the President pulled a fast one on Speaker Boehner…

And good for him!

Actual budget cuts were “only” $14.7 billion, as opposed to the GOP’s bragging about almost $40 Billion.

I haven’t had time to dig into today’s speech yet, but I’m hoping he’s on his way to taking control of the debate and protecting the middle class, seniors and other from the hatchet wielding GOP.

It should be a piece of cake.  President Obama is a very smart man.  Boehner is not the sharpest knife in the drawer.  Paul Ryan is delusional.  ‘

This could be fun….

Or it could be a disaster.

It all depends on President Obama….

From the National Journal:

The meat of the spending deal struck between the two parties late Friday night was revealed in a legislative omnibus released early Tuesday morning. The specifics show that finding nearly $40 billion in cuts during the 2011 fiscal year required clever accounting and, for the White House, a willingness to concede on rhetoric to find gains on substance.

For example, the final cuts in the deal are advertised as $38.5 billion less than was appropriated in 2010, but after removing rescissions, cuts to reserve funds, and reductions in mandatory spending programs, discretionary spending will be reduced only by $14.7 billion.

White House officials said throughout the process that the composition of the cuts was more important than the top-line number, and that including mandatory cuts allowed that top line to grow while limiting the immediate impact of the cuts.

The move also keeps the 2011 discretionary baseline slightly higher, a terrain advantage for the Democrats heading into the 2012 spending process.

via NationalJournal.com – Budget Cutting Ain’t Easy – Wednesday, April 13, 2011.

Leave a comment

Filed under Politics, Tea Party, The Economy

Tagged as , , , , , , , ,

April 13, 2011 · 9:51 pm

Poll: Budget deal wins support, but Americans wary

Interesting numbers from USA Today/Gallup Poll…

In summary, the “public” is okay with the budget deal from last week, but most don’t want anymore cuts to Domestic spending…

They also want to rescind the Bush Tax Cuts for the Rich…

And no one wants to cut Medicare, Medicaid or Social Security…

I hope President Obama is willing to go to the mat for those programs…

I’m not yet convinced he will…

In the public’s view, so far so good.

By more than 2-to-1, 62%-25%, those polled say they approve of the deal, and few see it as a partisan victory. Three of four say it was a victory either for neither side (56%) or for both sides (20%).

There is less consensus on what to do next, though, and little encouragement for policymakers such as House Budget Chairman Paul Ryan who are urging bold action to control the exploding costs of Medicare.

“Everybody wants to go to heaven, but nobody wants to die,” says Gary Jacobson, a political scientist at the University of California, San Diego. “People want a balanced budget … but they really don’t like the cuts that are involved.”

He questions whether it will be possible for the White House and Congress to strike a grand bargain that calls on both to take some political hits. “I’m not sure there’s enough mutual trust possible in Washington these days for that kind of deal to be made.”

In the poll, those surveyed:

• Are split over whether there should be significant additional cuts in domestic spending: 47% say no, 45% yes. On this issue, there is a yawning divide between the parties. Democrats by 2-to-1 oppose more cuts; Republicans by 2-to-1 support them.

• Overwhelmingly oppose making major changes to Medicare. By 2-to-1, they support minor changes or none at all to control costs, rather than major changes or a complete overhaul. Even a third of Republicans say the government should not try to control the costs of Medicare.

• Favor imposing higher taxes on families with household incomes of $250,000 and above, as Obama has endorsed: 59% support the idea, 37% oppose it.

Still, the divide on the issue could make Republicans less likely to compromise on it. While 78% of Democrats favor higher taxes on top earners, 60% of Republicans oppose it.

via Poll: Budget deal wins support, but Americans wary – USATODAY.com.

Leave a comment

Filed under Elections, Politics, The Economy

Tagged as , , , , , , , , , , ,

April 12, 2011 · 11:41 pm

Infrastructure Improvements ‘Key To Recovery,’ Report Says

This is what really scares me about the short sighted group in Washington today…

If we don’t start making infrastructure investments, not only will the economy stall, but we won’t be positioned to move forward and compete with other nations…

Another example of where we are heading toward becoming a Third World Country if we don’t start investing in infrastructure and our future…

Slaughter wrote that modernization efforts like high-speed rail development are vital to economic growth — and helped make the U.S. a leading economy in the first place: “High-quality infrastructure has helped boost U.S. productivity and standards of living, in part by encouraging global companies to create high-paying jobs here. Today, however, America’s infrastructure is deteriorating — both in absolute terms and relative to other countries that are rapidly bolstering their infrastructure.”

The nation’s aging infrastructure was thrown into sharp relief in August 2007 when an interstate bridge jammed with rush hour traffic suddenly collapsed, pitching dozens of cars into the Mississippi River below and killing 13 people.

via Infrastructure Improvements ‘Key To Recovery,’ Report Says.

Leave a comment

Filed under Energy, Politics

Tagged as , , , ,

April 12, 2011 · 10:28 pm

In the Next Round of Budget Talks, Big Cuts for Health Research Are Coming | The Nation

This Congress- and Washington in general- has no foresight….

Their current budget cutting mania is leading us down the path to becoming a Third World Country.

We have fallen behind the rest of the world in so many areas and they seem intent on pushing us back even more…

From The Nation:

But the real damage will come after the proposed cuts take effect. The NIH is comprised of twenty-seven institutes and centers with particular focuses, including the National Cancer Institute (NCI) and National Heart Lung and Blood Institute; each will decide how to manage their individual cuts. The NCI will prioritize funding the same level of new grants (they currently fund 14 percent of new grant applications), but will have to cut funding from cancer centers. Others will have to choose between new and existing grants. When ongoing grants aren’t renewed, work may simply stop. “University departments will do their best to support promising research during a dry spell,” explains Riggins, “and there are a few foundations that provide bridge grants, but these resources aren’t abundant either.”

In the long term, funding scarcity will make it hard to attract top research scientists. Many have already left for more stable careers in industry. And US labs will continue to lose people not just to other fields but to other countries as well. Kelly Ruggles, a microbiologist at Columbia, says, “It used to be that people would come here to get trained in the sciences. Now, people are leaving for better opportunities in Singapore or China. There’s just more science than money right now.”

Of course, this is a difficult funding environment, but the proposed NIH cuts are based in part on ignorance. Legislators who understand the NIH tend to give it full-voiced support. When retired Representative John Edward Porter chaired the appropriations subcommittee that oversees the NIH, he held hearings with each of the twenty-seven institutes so members could hear directly from the researchers why they needed money and what they were doing with it. When, during the mid-’90s, the House Budget Committee proposed cuts to the NIH budget, Porter brought a troupe of Nobel laureates, esteemed scientists and business leaders in to meet with then-speaker Gingrich. The result? Instead of cutting the budget, Congress doubled the NIH budget over five years, because they saw that the funding was working. “I certainly learned that the money going to the NIH was money that was being tremendously well spent,” recalls Porter, “making a difference in the lives of human beings all over the planet.”

via In the Next Round of Budget Talks, Big Cuts for Health Research Are Coming | The Nation.

Leave a comment

Filed under Education, Politics, The Economy

Tagged as , , , , , , , ,

April 12, 2011 · 9:53 pm

Budget debate was fought entirely on the GOP’s turf

Greg Sargent, at The Washington Post, makes some good points here…

First of all, it’s all about the 2012 Elections, not about what is best for the Country or what the Democrats core beliefs may be…

We know the Republicans have no core beliefs…

Sadly, given what happened in 2010, this approach might be necessary to deal with an uneducated, stressed out, results oriented electorate.  Obama’s strategy may be to try to protect the American electorate from themselves…

This might be smart, but it’s also very scary….

And it sacrifices good policy on the altar of political necessity….

And Americans have no one to blame but themselves…

President Obama’s advisers apparently believe that his best route to reeelection is to acknowledge the need for more fiscal discipline, while picking a fight with the GOP over the need for targeted government investment in our future and painting the GOP’s cut-at-all-costs vision as out of the mainstream. In fairness, his advisers, as Paul Krugman noted recently, may very well be right about this.

But it’s still worth appreciating how far to the right the debate has shifted, in part because of Democratic acquiescence. The idea that government spending should be a job-creation tool in our arsenal was entirely marginalized, to the point that it was simply not part of the discussions; meanwhile, the insane conservative demand for $100 billion in cuts was treated as a kind of outer right-wing boundary of legitimate discourse. The result: Giving Boehner more than he originally asked for in cuts became the stuff of middle ground compromise.

via Budget debate was fought entirely on the GOP’s turf – The Plum Line – The Washington Post.

Leave a comment

Filed under Politics, The Economy, Uncategorized

Tagged as , , , , , , ,

April 11, 2011 · 11:30 pm

Conservative Economists Criticize ‘Off The Deep End’ Republican Budget

This crazy budget proposal from Paul Ryan and the GOP is already in serious trouble.  It both cuts Medicare and Taxes for the Rich while increasing Defense spending.  That’s just crazy….

Now some of the old line Conservatives are coming out in agreement that it’s not a serious, much less “courageous” proposal….

I’m hoping this is another example of smoke and mirrors where the smoke is starting to clear, the mirror’s are breaking and Toto has pulled back the curtain to reveal the Koch Brothers and their fellow wealthy friends, who now own the GOP, are the wizards behind the curtain….

From TalkingPointsMemo.com:

“It doesn’t address in any serious or courageous way the issue of the near and medium-term deficit,” David Stockman told me in a Thursday phone interview. “I think the biggest problem is revenues. It is simply unrealistic to say that raising revenue isn’t part of the solution. It’s a measure of how far off the deep end Republicans have gone with this religious catechism about taxes.”

Stockman, who directed Ronald Reagan’s Office of Management and Budget, approves of Ryan’s entitlement proposals, but breaks faith over taxes and the GOP’s unwillingness to slash defense spending. And he laughs off the notion that the plan will do anything about unemployment, let alone dramatically reduce it, which Ryan and his plan claim it will. “This isn’t 1980. It’s not morning again in America. it’s late afternoon, or possibly even sunset.”

On this score, Doug Holtz-Eakin — a former McCain and George W. Bush economic adviser — told Huffington Post Ryan’s plan is “implausibly optimistic.”

The libertarian economist Tyler Cowen wrote up a point-by-point critique of the plan. His principle objections are that the plan doesn’t do anything to control health care costs, and cutting Medicaid is neither good policy, nor urgent. Indeed, he notes, “Medicaid should be one of the last parts of the health care budget to cut.” Emphasis in the original.

via Conservative Economists Criticize ‘Off The Deep End’ Republican Budget | TPMDC.

Leave a comment

Filed under Uncategorized

Tagged as , , , , , , , ,