Raise taxes or Granny gets it

[Little-Acorn]

Well, the good news is, one of my questions has been answered. If we don't raise the debt ceiling by Aug. 2 (or whenever the date is), we won't necessarily default on the National Debt. Other Federal programs are open to the chop too.

Looks like the plan to scare everybody into raising taxes, is proceeding on schedule.

The issue is not, of course, whether the debt ceiling will be raised. Liberals (in both parties) have borrowed such huge amounts over the last few years, and promised so much spending, that more will HAVE to be borrowed just to meet present commitments. Instead, it is what things will the govt change along with it: raise taxes or cut spending. Raising taxes will not bring in enough additional revenue, if it brings in any at all - it is more likely to simply drag the economy to a stop.

Limbaugh said today that the Republicans should be working hard on a new commercial, to bring out right now: A scene where Barack Obama is wheeling an old woman along through the brush in a wheelchair, pushes her up to a cliff edge, and dumps her off into space.

I should have said, "Before the Democrats make that commercial themselves"... but it's too late.

At least this time it would be accurate. Last time, Democrats were trying to scare people about Paul Ryan's budget... without mentioning that it didn't reduce seniors' Social Security payments a dime.

----------------------------------

http://opinionjournal.com

Raise Taxes or Granny Gets It
The liberal media's idea of a grown-up.

from "Best of the Web Today"
by JAMES TARANTO

President Obama is pulling out the big guns and pointing them straight at your grandmother. "Obama on Tuesday said he cannot guarantee that retirees will receive their Social Security checks August 3" absent an agreement with Congress to raise the debt ceiling, CBS News reports:

"I cannot guarantee that those checks go out on August 3rd if we haven't resolved this issue. Because there may simply not be the money in the coffers to do it," Mr. Obama said in an interview with CBS Evening News anchor Scott Pelley, according to excerpts released by CBS News.
At a press conference yesterday, Obama demanded that Republicans not only authorize trillions of dollars in new borrowing,which at this point seems unavoidable, but agree to what he called "massive, job-killing tax increases" effective in 2013--i.e., after what he expects will be his re-election.

For this he drew plaudits from what used to be called the mainstream media. "Obama Grasping Centrist Banner in Debt Impasse" read the New York Times headline. The Washington Post's Chris Cillizza dubbed him "Dad-in-Chief," explaining: "Boil Obama's message down and you get this: Adults sometimes have to do things that they don't want to do. This is one of those times. So, let's get it done."

The kids are acting up, so he threatens to starve Granny to death. That's just how a strong father behaves.

It looks to us as if Obama may once again be overestimating his persuasive powers by relying for feedback on journalists who, for a combination of ideological, partisan and personal reasons, are predisposed to take his side. NewsBusters.org has a useful compilation of what it calls the "softballs" reporters lobbed at yesterday's press conference. Some of them were actually a bit adversarial, but only from the left.

[Gunny]

Well, the good news is, one of my questions has been answered. If we don't raise the debt ceiling by Aug. 2 (or whenever the date is), we won't necessarily default on the National Debt. Other Federal programs are open to the chop too.

Looks like the plan to scare everybody into raising taxes, is proceeding on schedule.

The issue is not, of course, whether the debt ceiling will be raised. Liberals (in both parties) have borrowed such huge amounts over the last few years, and promised so much spending, that more will HAVE to be borrowed just to meet present commitments. Instead, it is what things will the govt change along with it: raise taxes or cut spending. Raising taxes will not bring in enough additional revenue, if it brings in any at all - it is more likely to simply drag the economy to a stop.

Limbaugh said today that the Republicans should be working hard on a new commercial, to bring out right now: A scene where Barack Obama is wheeling an old woman along through the brush in a wheelchair, pushes her up to a cliff edge, and dumps her off into space.

I should have said, "Before the Democrats make that commercial themselves"... but it's too late.

At least this time it would be accurate. Last time, Democrats were trying to scare people about Paul Ryan's budget... without mentioning that it didn't reduce seniors' Social Security payments a dime.

----------------------------------

http://opinionjournal.com

Raise Taxes or Granny Gets It
The liberal media's idea of a grown-up.

from "Best of the Web Today"
by JAMES TARANTO

President Obama is pulling out the big guns and pointing them straight at your grandmother. "Obama on Tuesday said he cannot guarantee that retirees will receive their Social Security checks August 3" absent an agreement with Congress to raise the debt ceiling, CBS News reports:

"I cannot guarantee that those checks go out on August 3rd if we haven't resolved this issue. Because there may simply not be the money in the coffers to do it," Mr. Obama said in an interview with CBS Evening News anchor Scott Pelley, according to excerpts released by CBS News.
At a press conference yesterday, Obama demanded that Republicans not only authorize trillions of dollars in new borrowing,which at this point seems unavoidable, but agree to what he called "massive, job-killing tax increases" effective in 2013--i.e., after what he expects will be his re-election.

For this he drew plaudits from what used to be called the mainstream media. "Obama Grasping Centrist Banner in Debt Impasse" read the New York Times headline. The Washington Post's Chris Cillizza dubbed him "Dad-in-Chief," explaining: "Boil Obama's message down and you get this: Adults sometimes have to do things that they don't want to do. This is one of those times. So, let's get it done."

The kids are acting up, so he threatens to starve Granny to death. That's just how a strong father behaves.

It looks to us as if Obama may once again be overestimating his persuasive powers by relying for feedback on journalists who, for a combination of ideological, partisan and personal reasons, are predisposed to take his side. NewsBusters.org has a useful compilation of what it calls the "softballs" reporters lobbed at yesterday's press conference. Some of them were actually a bit adversarial, but only from the left.

Was there ever a doubt? Attacking government-controlled fixed incomes is SOP.

After not getting a cost of living increase in retirement pay since Obama has been in office, this year, my FICA was jacked $35 more bucks a month. Got a COLA increase each year the previous 8 years prior to Obama.

[CSM]

Seniors on SS are the built in "victims" that Dems need to stay in power. There are also those who are the beneficiaries of the host of government entitlement programs as well as students who get their government loans, etc. Without "victims" the Democrat's party platform crumbles like a rotted wooden shack. Obamacare is just the latest in a long line of coups to create vast throngs of "victims" which will keep the Dems in control.

With Dems/liberals, it boils down to power and control and not fairness and compassion. The more folks who are dependent on the government (run by Democrats/progressives and liberals) for their health, welfare and happiness, the less productive, creative and responsible this nation becomes.

[Kathianne]

To Obama's consternation the people are paying attention to the debt ceiling, the debt, the spending...

That's his problem, they are watching and they don't want the debt to grow, in fact the majority are against a raise in the limit. Something has to give and it better not be the restraints that so far the conservatives are holding to:

http://www.thefiscaltimes.com/Columns/2011/07/13/America-Is-Paying-Attention-to-the-Debt-Ceiling.aspx


Mr. President: America is Paying Attention to the Debt Ceiling
By LIZ PEEK, The Fiscal Times July 13, 2011

Asked during his Monday press conference why 69% of Americans in a recent poll indicated they did not want the debt ceiling lifted, President Obama suggested that most people were not really paying attention to the down-to-the wire negotiations. He’s wrong. The entire globe is focused on how the world’s largest economy is going to right itself; so far, the process has been anything but impressive.
Debt Ceiling: Complete Coverage

President Obama has run into a brick wall. It’s called the will of the people. The reason he can’t force Republicans to raise the debt ceiling is that he will not countenance a deal that cuts spending but doesn’t raise taxes. He seems unable to grasp that 236 Republicans in the House of Representatives and 41 Senators have signed the Taxpayer Protection Pledge, promising that they will “oppose any and all efforts to increase the marginal income tax rates for individuals and /or businesses…and oppose any net reduction or elimination of deductions and credits, unless matched dollar for dollar by further reducing tax rates.”

The newly elected Republicans in the House believe they were sent to Congress to harness runaway government by reducing spending. They are, shockingly, committed to the principles on which they campaigned. This is such a foreign concept in Washington that it seems President Obama can’t wrap his mind around it.

Freshman Representative Nan Hayworth (R-N.Y.) has signed the pledge, which she says “represents principles I believe in.” She explains that increasing taxes on higher-income earners “would not be beneficial…a lot of that income finds its way into venture capital funds and other investment vehicles that can lead to job growth.” She says, “There is no historical evidence we would be doing the right thing” in raising taxes, and allows that increasing revenues should follow (and not precede) an expansion of the workforce.

“Increasing taxes on job creators is the last thing we should do,” says Hayworth. “We need to be activating and rewarding job creators, and assuring them the government will act responsibly.”

Dr. Hayworth (she is an ophthalmologist) is not a member of the Tea Party Caucus; she is not a nut. She knows that we have raised our debt ceiling 74 times since 1962, that spending is the highest it has ever been relative to GDP (except during World War II), and that it must come down. She objects to tax increases but would support reform that ushers in a flatter, fairer tax code. ...

And now some in the MSM are beginning to report on the facts that have been ignored for too long:

http://washingtonexaminer.com/blogs/beltway-confidential/2011/07/washington-gets-200-billion-month-social-security-costs-50-billio


...Clearly, it is of no matter to Obama that hiking taxes and raising the national debt limit very likely will keep millions of Americans unemployed and hobble the economy for years to come. All he has to do is scare enough voters long enough to get through the November 2012 election to get himself re-elected.

Here are the facts, as reported by MarketWatch and the Bipartisan Policy Center. You do the math:

* The federal government receives approximately $200 billion in revenues each month.

* Interest on the national debt in August will be approximately $29 billion.

* Social Security will cost about $49. 2 billion.

* Medicare and Medicaid will cost about $50 billion.

* Active duty military pay will cost about $2.9 billion.

* Veterans affairs programs will cost about $2.9 billion.

If you've been punching buttons on your calculator, you know that still leaves $39 billion each month. This is where Obama and the Democrats most fear to go. If Congress doesn't agree to raise taxes and the national debt limit, they will then have to make the tough choices about which of the remaining programs gets paid or cut and by how much:

* Defense vendors

* IRS refunds

* Food stamps and welfare

* Unemployment benefits

* Department of Education

* Department of Housing and Urban Development

* Department of Justice, etc. etc.

In sum, federal spending would have to be cut about 44 percent. For more on this, go here and here.

So the next time you hear Obama, or Senate Majority Leader Harry Reid, or Sen. Charles Schumer, D-NY, or House Minority Leader Nancy Pelosi, or any of the multiple Democratic echo chambers in the liberal mainstream media, remember - what they are saying is pure demogoguery.

[KarlMarx]

OK, let Obama purposely keep those SS and Medicare checks back... that will give the Republicans more than enough ammunition than they need to brand Obama a hostage taker who is willing to sacrifice the well being of old people for the sake of political gain.

This guy is doing what Hamas, Al Queda, and Hezzboallah only dream of... hold millions of senior citizens and young Americans as hostages in order to advance his cause.

[Kathianne]

http://blogs.reuters.com/james-pethokoukis/2011/07/12/the-issue-isnt-default-but-government-shutdown/


The issue isn’t default but government shutdown
Jul 12, 2011
James Pethokoukis
Politics and policy from inside Washington

Here’s a great chart from Goldman Sachs that shows how government revenues and obligations will likely match up in August:

http://blogs.reuters.com/james-pethokoukis/files/2011/07/gs1.jpg


As is clearly shown, there is enough cumulative money coming to pay interest, SS, Medicare and defense. Not that there wouldn’t be cash managements issues. That and several other issues are addressed in a Q&A from a GS report last week. Some excerpts (bold is mine):

Q: What happens on August 3 if the debt limit is not increased?

A: … Using August 2010 spending and receipts as a proxy, the Treasury will probably take in $5-$10 bn in revenue on August 3, leaving insufficient revenues to make Social Security payments partly unfunded even if all other spending is deferred. Since the Treasury has carried a minimum cash balance of about $20 bn since 2009, and currently carries a balance of $74 bn, Social Security payments might still be made by drawing down the Treasury’s cash balance.

Q: Are Treasury interest payments at risk?

A: We do not think so. … There are two basic reasons that interest payments should not be called into question: First, if the August 2 deadline is missed, it is very difficult to see the debate dragging to August 15, when interest payments are made, since we doubt there will much congressional appetite for a protracted lapse in borrowing authority. … Second, the Treasury is likely to prioritize payments. While the sharp fiscal contraction that would result from prioritization would have negative short-term economic consequences and would be difficult to implement, it nevertheless seems likely if necessary.

Q: If other non-interest payments are missed, would that constitute a default?

A: Probably not, at least from the rating agency perspective. The rating agencies have not been entirely clear on this point, but S&P, Moody’s, and Fitch all appear to view a failure to pay other obligations to be different from a default. S&P has already put the US on negative outlook due to longer-term fiscal issues, and the other two rating agencies have indicated they will move to a negative outlook if no agreement is reached by August 2.

[Kathianne]

http://www.gallup.com/poll/148454/Debt-Ceiling-Increase-Remains-Unpopular-Americans.aspx


U.S. Debt Ceiling Increase Remains Unpopular With Americans
More are concerned about higher level of spending than risk of economic crisis
by Lydia Saad

PRINCETON, NJ -- Despite agreement among leaders of both sides of the political aisle in Washington that raising the U.S. debt ceiling is necessary, more Americans want their member of Congress to vote against such a bill than for it, 42% vs. 22%, while one-third are unsure. This 20-percentage-point edge in opposition to raising the debt ceiling in Gallup's July 7-10 poll is slightly less than the 28-point lead (47% vs. 19%) seen in May.

...

Bottom Line

Despite intense lobbying of Congress by President Obama, Treasury Secretary Timothy Geithner, and others in the administration about the economic urgency for raising the nation's debt limit, fewer than one in four Americans favor the general idea of raising it. Also, Americans are significantly more concerned about the budgetary risk of giving the government a new license to spend than they are about the potential economic consequences that would result from not raising the debt limit. Both of these findings put Americans more on congressional Republicans' side of the debate than Obama's -- at least in terms of political leverage as the two sides negotiate a deal. Nevertheless, Americans place Obama and the Republicans in Congress at parity in their preferences for whom they trust more to handle the federal budget deficit and debt ceiling, similar to the close division in U.S. partisanship, more generally.


As can be seen from the 'bottom line', Obama risks all the good will of the people on this, they don't want to go against him, but are now trending to this very thing.

[Kathianne]

http://blogs.marketwatch.com/fundmastery/2011/07/12/the-u-s-treasury-will-not-default/


* July 12, 2011, 2:52 PM ET

The U.S. Treasury will not default

Despite all the rhetoric and posturing we see in the media and in Washington D.C., it is safe to say categorically that the U.S. Treasury will not default on its debt after August 2nd, even if the debt ceiling is not raised. Not only will the Treasury be able to pay interest on U.S. debt obligations, but there is money for other essential programs as well. However, there will be some serious cutting that has to happen because spending clearly exceeds revenues.

I believe a debt ceiling limit extension will be enacted. However, let’s consider what might happen if the debt ceiling limit is not raised. Here in a Q&A format is what I believe you need to know at a basic level...

...Math is hard for politicians

Now, let’s do the math to flesh out some of these points. I know that for many politicians and pundits math is hard, but I’ll try to make it as simple as possible. If we do not raise the debt ceiling by August 2nd, we will not default on Treasury obligations. Nor, will we have trouble making Social Security payments. However, there would be a big drop — roughly 44% — in government spending because that percentage represents the difference between government revenues which would be about $200 billion for the full month of August and $172 billion for August if we start counting after the first week when the deadline hits. Spending is slated to be over $300 billion that month.

Here are the numbers from an excellent and highly detailed study by the Bipartisan Policy Center (BPC) quoted in this piece [emphasis added]:

…The BPC study found that the United States is likely to hit the debt limit sometime between August 2 and August 9. “It’s a 44 percent overnight cut in federal spending” if Congress hits the debt limit, Powell said. The BPC study projects there will be $172 billion in federal revenues in August and $307 billion in authorized expenditures. That means there’s enough money to pay for, say, interest on the debt ($29 billion), Social Security ($49.2 billion), Medicare and Medicaid ($50 billion), active duty troop pay ($2.9 billion), veterans affairs programs ($2.9 billion).

[B] That leaves you with about $39 billion to fund (or not fund) the following:

Defense vendors ($31.7 billion)

IRS refunds ($3.9 billion)

Food stamps and welfare ($9.3 billion)

Unemployment insurance benefits ($12.8 billion)

Department of Education ($20.2 billion)

Housing and Urban Development ($6.7 billion)

Other spending, such as Departments of Justice, Labor, Commerce, EPA, HHS ($73.6 billion)

The decision to prioritize payments would fall on the Treasury department, and Powell points out it would be chaotic picking and choosing who gets paid (in full or partially) and who doesn’t…

No doubt picking and choosing who gets paid and who doesn’t would be chaotic. And, lots of programs would not get their funding and that would lead to plenty of screaming. Nonetheless, it should be clear from this exactly how much we are spending in excess of government revenues. And, that could and should lead to a sober assessment of what government can and cannot do...

[KarlMarx]

The latest is that Obama walked out of the negotiations in a huff. Polls indicate that most Americans are against the President's position and for the GOP's

Obama is either going to come out of this smelling like a rose or, more likely, like a skunk... perhaps this is wishful thinking, but this situation may be the beginning of the end for Obama....

[Kathianne]

The latest is that Obama walked out of the negotiations in a huff. Polls indicate that most Americans are against the President's position and for the GOP's

Obama is either going to come out of this smelling like a rose or, more likely, like a skunk... perhaps this is wishful thinking, but this situation may be the beginning of the end for Obama....

Link to what you are referring to:

http://news.yahoo.com/obama-top-foe-clash-us-debt-talks-flare-020229831.html


...Republican aides described Obama as storming out of the meeting in a huff, while their Democratic counterparts said that the presidential rebuke left Cantor chastised and speechless.

"I've reached my limit. This may bring my presidency down, but I will not yield on this," according to a Republican aide.

The president's message was "enough posturing, he said 'enough is enough.' He did not abruptly walk out. He was done with the meeting, everyone was done with the meeting, and he left," said a Democratic aide...

Obama drama. :rolleyes:

[red states rule]

You know it is bad when a fellow socialist is calling Obama a liar

There is no surplus, but the government is taking in enough tax money to cover the checks

Obama is a very desperate person these days

<iframe title="MRC TV video player" width="640" height="360" src="http://www.mrctv.org/embed/103623" frameborder="0" allowfullscreen></iframe>

[KarlMarx]

I have to wonder if the Democrats will start seeing the writing on the wall. I was listening to a local talk show yesterday (I'm on vacation this week) and every one of the callers was against raising the debt ceiling. Many of the older people voiced dismay at Obama's threat to hold up Social Security.

With this groundswell of support for the Republicans, you'd think that the Democrats will wake up and smell the coffee then abandon Wonder Boy in droves.

But then, who would be left to eat the peas?

[red states rule]

I have to wonder if the Democrats will start seeing the writing on the wall. I was listening to a local talk show yesterday (I'm on vacation this week) and every one of the callers was against raising the debt ceiling. Many of the older people voiced dismay at Obama's threat to hold up Social Security.

With this groundswell of support for the Republicans, you'd think that the Democrats will wake up and smell the coffee then abandon Wonder Boy in droves.

But then, who would be left to eat the peas?

They won't and neither will their allies in the liberal media. The sheer hate the left has for those who have succeeded in life is amazing

and this is a NEWS network?????


<iframe title="MRC TV video player" width="640" height="360" src="http://www.mrctv.org/embed/103687" frameborder="0" allowfullscreen></iframe>

[red states rule]

I love it when Obama supporters are left speechless and cannot answer a direct question on those "cuts" Obama has offered

<iframe title="MRC TV video player" width="640" height="360" src="http://www.mrctv.org/embed/103688" frameborder="0" allowfullscreen></iframe>

[red states rule]

No race is brought into the debt lmit debate. Is anyone surprised?

http://www.realclearpolitics.com/video/2011/07/15/dem_congresswoman_blames_debt_ceiling_fight_on_oba mas_race.html

[red states rule]

http://media.townhall.com/Townhall/Car/b/payn110715_cmyk20110715024111.jpg

[Gaffer]

http://www.youtube.com/watch?v=J_l5h2IFm-0&feature=player_embedded

And this is suppose to be a president?

[fj1200]

:eek: Did he just do that?

[Gaffer]

:eek: Did he just do that?

This was at a press conference. I haven't been able to follow up on the whole thing due to internet problems. Just got a new provider and it's giving me problems. They won't be out to check the lines till tomorrow.

Got that video in an email and said "holy shit!" Anyone seen any coverage of it on the MSM?

[fj1200]

Anyone seen any coverage of it on the MSM?

No, which is reason to doubt its veracity. Even the MSM would lead with something like that.

Obama kicks door in video? It isn't real (http://specials.msn.com/A-List/Lifestyle/Obama-Tonight-Show-clip.aspx?cp-documentid=26660774)