The Pardu

The Pardu
Watchful eyes and ears feed the brain, thus nourishing the brain cells.

Monday, July 11, 2011

The House of OZ IX: How about some Tea (Party) with those politics?

Do any of you own either of the following?  Does your friends or family own any of the following?

Corporate jet
Yachts and vacation homes
Racehorses

Are you a hedge fund manager?

If you answered no to either of the questions you are a member of a large fraternity of US denizens that can be loosely referred as the nation's backbone, the middle class or lower upper class.  You are part of the majority of the nation's consumers and people who stand to the lose should the President of the United States and Congress fail to settle negotiations towards the looming Debt Ceiling crisis.

I have read information that the Administration wants to reduce spending while increasing revenue with approximately four (4) trillion USD on the negotiation table.

If I remember correctly, disgruntled voters and Tea Party enthusiasts voted to seat a majority of Republicans in the House of Representatives, (herewith referred to as the House of Oz).  Disgruntled Americans bought 'lock-stock and barrel' the conservative argument that the nation's spending was out of control and, "...look Obama is making it worse".  

The Tea Party since January 9, 2011, has boisterously and often disgustingly railed about the evils of the Obama Administration and the need to cut spending.  Both voting blocks plus the majority of Americans sought increased employment on a national basis. The mantra from the RIGHT was "JOBS, JOBS, JOBS".

This past Saturday afternoon , July 9, 2011, the speaker of the House of OZ phoned President Obama to inform him that he was not able to support the 'Grand Bargain'  sought by the President. Let's take a moment to review components of the 'Grand Bargain'. I suspect there must have been significantly more on the table, if the  $4 trillion figure was near accurate. So far, I have been able to find the following data but no additional  detailed proposal figures or components of the Grand Bargain ($4 trillion).


The 'Grand Bargain'


Cuts:
-$1-1.3 trillion in cuts to discretionary spending, including $400 billion from the Pentagon’s budget
-$150-275 billion: cuts to farm subsidies, spectrum sales and other mandatory spending, such as requiring federal workers to put in more toward their pensions
-$200-$400 billion: cuts to Medicare and Medicaid providers
-$325-$350 billion: interest savings
Total: $1.7 trillion to $2.3 trillion
Revenues:
-$290 billion: capping mortgage and charitable deductions at 28% for individuals who make more than $200,000, or couples who make $250,000
-$60 billion: eliminating last-in-first-out (LIFO) accounting for businesses
-$45 billion: eliminating oil and gas subsidies
-$20 billion: treating as regular income the “carried interest” rate most hedge fund managers are taxed at
-$3 billion: eliminating tax breaks for corporate jet owners
-$2.5 billion: eliminating ethanol subsidies
-$1 billion: eliminating tax deductions for yachts and vacation homes
-$162 million: eliminating tax break for racehorse owners
Total: $422 billion 

Total 2.5 trillion (based on my taking the mid point between 1.7 trillion and 2.3 trillion plus the 422 billion in 'Revenue Increases').

Newswire...

Grand Bargain generalities LINKED

Obama had proposed to Republicans a "grand bargain" that accomplished a host of individual things that are unpopular on their own, but that just might pass as a huge package jammed through Congress with default looming. Obama offered to put Social Security, Medicare and Medicaid cuts on the table in exchange for a tax hike of roughly $100 billion per year over 10 years. Meanwhile, government spending would be cut by roughly three times that amount. It's no small irony that the party's dogmatic opposition to tax increases is costing the GOP its best opportunity to roll back social programs it has long targeted.


HUFFPOST Aol News

John Boehner Rejects Obama's Grand Bargain On Debt Ceiling

John Boehner Debt Ceiling
First Posted: 7/9/11 08:45 PM ET Updated: 7/9/11 08:55 PM ET


WASHINGTON -- House Speaker John Boehner is rejecting President Obama's offer to make historic cuts to the federal government and the social safety net, saying in a statement Saturday evening that he can not agree to the tax increases Democrats insisted on as part of the bargain.


Boehner made his decision after speaking with the president by phone on Saturday afternoon, a day ahead of a major White House meeting with Democratic and GOP leadership, a Republican source familiar with situation said.


Obama had proposed to Republicans a "grand bargain" that accomplished a host of individual things that are unpopular on their own, but that just might pass as a huge package jammed through Congress with default looming. Obama offered to put Social Security, Medicare and Medicaid cuts on the table in exchange for a tax hike of roughly $100 billion per year over 10 years. Meanwhile, government spending would be cut by roughly three times that amount. It's no small irony that the party's dogmatic opposition to tax increases is costing the GOP its best opportunity to roll back social programs it has long targeted.
Republicans are now banking on a smaller deficit reduction deal that would still make major cuts, somewhere in the range of $2 trillion.


Articles continues, see link above


END HUFF POST exert

I believe that now is the time to ask, "Did the GOP make a pledge (since they love them so much) to the voters who swept them to a majority in the House of OZ?  Are they fulfilling the desires of those who gave them numerous governorships, and majorities in many state legislative branches?  Is Minnesota an early example of how the GOP works to fulfill their commitment (not to constituents) to their major contributors, all the while executing an obvious plan to dismantle all that is progressive in our nation ?

I am not completely well versed in the Minnesota State shut-down but I have read one glaring statistic.  The Stated has 5,300,00 million residents. Seven thousand and seven hundred (7,6700) are millionaires. I have read that one central issue relates to increases taxes could adversely affect those 7,700 residents; thus placing a 'no touchy' barrier in progress towards a financial resolution.  If I am completely wrong, I hope someone will share accurate information. If you are inclined to provide  information, do not type a comment filled with mindless Right-Wing 'talking points'.

The next logical question is, has the President shed telling light on the ultimate driver of the GOP.  I have read that the President has placed entitlement programs on that table (even suffering serious push-back from his own party).  Among the language and figures above, I do not see clear evidence that the President has agreed to Paul Ryan type 'Medicare Killing' voucher plans. The data is also missing clear indications of direct increases in taxes to the nations wealthy.  Alas, maybe there-in lies the additional $1.5 to $2 Trillion towards the rumored $4 Trillion from the Administration.

Telling light, if that is the case, is revealing and believable reasons the GOP (and tea Party) resists the Administration's Grand Bargain. 

Unless I am mistaken, for reason that I do not yet know, it seems the GOP and the Tea Party are not fulfilling their stated goals.   They have aggressively embarked on issues that were not a part of their campaign platforms while exercising barriers to and avoidance of measures that could work to reduce spending, cut taxes, and work towards balanced budgets year to year. While ignoring their supposed mission and goals, they have masterfully embarked on longstanding agenda driven strategies: dismantling entitlement programs, eliminating public service collective bargaining, instilling bigoted beliefs where possible, and generally working to unseat President Obama.

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