In Case a $700B Addition to the Debt Isn't Enough

You know what they say, “a teaspoon of sugar helps the medicine go down.”

The Senate will take up a “sweetened” version of the financial rescue package this evening.  The “sweeteners” are intended to encourage House Republicans (who chose not to support the House version) to ultimately support the Senate version. 

Trouble is, as this CNN story points out, the Senate seems to be saying “to hell with” the House Democrats, especially the group of House Ds I am most fond of (the Blue Dogs)–emphasis added:

The revised bill contains provisions that the Senate hopes will appeal to House Republicans, who voted two-to-one against the original legislation. The sweeteners include renewable energy tax incentives - for individuals and businesses alike - that have been on the table for several months and had a chance of passing at some point anyway.

The bill also includes relief from the Alternative Minimum Tax, without which millions of Americans would have to pay the so-called “wealth tax.”

AMT relief is an annual political ritual, not because it lacks received bipartisan support, but because deficit hawks on both sides of the aisle contend the cost of providing that relief should be paid for. Others argue it shouldn’t be paid for because the AMT was never intended to hit the people the relief provisions would protect. Nevertheless, lawmakers pass the measure every year or two.

There’s that reasoning I can’t stand: that it’s “not right” to replace the revenue from an unfair tax with revenue from completely different (fairer) taxes. That’s called “revenue neutral tax reform.” 

Someone needs to ask those senators (both Rs and Ds) who espouse such justification for deficit-financed tax cuts:  why is it more fair to replace that revenue (from that unfair tax) with a debt burden that will ultimately be paid by our children and grandchildren?

Comments

[The Realist:]

The reason we replace that revenue with additional deficit spending is that Americans are little babies. We want everything now. That is what this garbage baby boomer generation has taught us. They saved nothing, paid very little in SS and Medicare and now vote to expand their benefits at the expense of their children. How can baby boomers get Medicare drug benefits if they have paid nothing into that program for forty years? But that is this country's mentality, all today, don't worry about tomorrow.

We are going to waste $700bil of tomorrow's money just in the hope that we can make all the bad things that were done go away. Which it won't.

These lawmakers are all bigger lowlifes than common criminals. They steal our future so that they can get elected today and stay in office to line their pockets with legal bribes.

2008 Oct 01 02:11 PM

[jjm101:]

The answer is not replace unfair taxes with new fairer taxes (who defines that?) or to deficit spend......... its to REDUCE wasteful spending.

2008 Oct 01 02:22 PM

[Lex Luz:]

"These lawmakers are all bigger lowlifes than common criminals. They steal our future so that they can get elected today and stay in office to line their pockets with legal bribes. "

QUOTED FOR TRUTH.

I will be voting against ALL incumbents this year and ask all people who believe in the promise of America to do the same. Whether you are a Republican or a Democrat or like me, Something Else Entirely, PLEASE, PLEASE, PLEASE vote to kick them ALL out this year.

No incumbents, no mercy - KICK THEM ALL OUT.

2008 Oct 01 02:54 PM

[Socialism c...:]

It's not fair to replace that tax revenue with debt. But its grossly more unfair that we pay the level of taxes we do to begin with! That is the cause of all this...and the solution! We have become used to a credit-based life precisely because for most of us, that is what is allowed us...the banks contrive to keep us borrowing -- it's how they make their money. And the Paulson plan (former banker...hmmm) is just another example of protecting credit-based living.

We have gotten to that point by allowing the federal government to take in excess of 40% of our gross for federal taxes alone (then add state, local, property, sales, gas taxes, vehicle registration, etc., etc.!!). You want a life that isn't based on credit? You want a future for this country that is based on work hard, and keep the merits of your own work -- incentive for Americans and therefore, America, to excel?? Then we must CUT GOVERNMENT TO THE CORE...and give Americans back what is theirs by doing so: our very FREEDOM as well as our MONEY.

Let your Congressmen and Senators know -- cut government, don't increase it by way of spending on mortgage debt. Give us our money back and we will be able to afford homes and much more. Stop the socialism and jump-start the economics of FREEDOM and INCENTIVE.

2008 Oct 01 03:59 PM

[Mr Bigfoot:]

Why must every big corporation that goes under get bailed out. Let the chips fall where they may. Don’t try to scare the public into thinking this is some big disaster. It’s only a disaster for the rich. Too bad I say. I hope they don’t all jump off the roof tops like they did back in the depression but I believe if you make your own bed you lie in it. We don’t need to bail out every rich guy that screws up do we? That was a retorical question so please don’t answer it for me , because I already know the answer. Here it is straight up, Money is supposed to be used to trade for material goods not for gambling in speculationin stocks , commodities, not for other types of casinos, hedge funds, parasitic interest rates that banks and credit card companies charge, bonds, or any of that other crapola. It’s was made to trade goods like food, land, homes cars etc. Anything else is a fictitious economy. CONGRESS PEASE GET IT RIGHT THIS TIME

2008 Oct 03 12:35 PM