The Republicans are so full of it, one could almost roll on the floor laughing at their blatant budget hypocrisy. You know their song and dance! Always yapping about "deficits" and "debt" but when crunch time comes - or they win mid-term elections in both houses, or the Presidency - all of that goes by the backboards.
A case in point, revealed in a recent front page Financial Times article ('U.S. Congress Considers Host of Tax Breaks', Nov. 26) is congress' plans to "blow the budget open" with a whole swatch of tax breaks, some of which could be made permanent. Let us bear in mind these nitwits, mainly Repukes, are doing this in an environment which, as the FT notes- has seen a dramatic fall in in the federal deficit, from more than 10 percent of GDP 6 years ago to 2.8 percent of GDP now.
So why the hell go nuts and break the bank when things are just now turning rosy and the fiscal future appears much better? Well, because as is their usual shtick - the Reepos and their lackeys and useful idiots (like Peter G. Peterson and his Foundation, Fix the Debt etc.) want to generate enormous added debt via tax breaks and giveaways in order to justify cuts to social insurance programs like Social Security later. (Indeed, I just received an advanced alert yesterday from the National Committee to Preserve Social Security and Medicare that this is precisely what these callous assholes would do.)
One of the most egregious parts of the "mooted deal" - to use the FT's parlance - is the plan to expand and make permanent the R&D tax credit for corporations, which lets companies write off R&D expenses against their tax bills. While it sounds harmless enough, in the past grievous misuse has included writing off 2-3 time more R&D expenses than companies actually used. The FT estimates this could cost $160 billion over ten years, but I suspect that's a gross underestimate. Look instead for it to top $200 b, especially when Big PhRma starts exploiting it.
The FT notes this also "changes the starting point for future tax reform". Indeed! If R&D write-off is made permanent the business sector will have much less reason to back broader reform. Why should they when the pukes are handing them so much on a silver platter? The FT piece adds that it "also lowers the tax base for a revenue neutral package".
All of this is insane given that currently the nation's spending and remaining debt is some 15 times larger than its income via taxes. Our infrastructure alone is literally falling apart with each year it goes untended for maintenance or replacement. If any tax credit ought to be given, it is for company investment in repair of our crumbling infrastructure- water mains (some of which, like here in COS are over 100 years old), sewer lines, and bridges.
And don't for a minute believe the Dems are innocent little angels in all of this! No, they just aren't as bad as the repukes (that dysentery vs. Ebola comparison again). The FT notes, for example, it would include "mass transit and college tuition tax breaks" - likely made permanent - for Charles Schumer of NY.
But the worst omission? The presumptive deal would not make permanent the Earned Income Tax Credit so important to the working poor (i.e. those at Walmart where that store has requested more well off employees to help those in need, with food, care packages etc.)
The FT reports that the White House has "threatened a veto" and in my opinion, they ought to make good on that threat. Indeed, they need to veto this whole absurd proposed tax package which would send us back to higher deficits we can't afford and allow the debt mongers to after the programs people need.
Leave it to the Reeps to f*ck the country up just when it's beginning to get on the right financial track including lower deficits. Another reminder that elections have consequences and Dem voters need to get their butts out and vote in mid-terms as much as they do in general elections!