The Swamp
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Posted January 16, 2008 9:45 AM
The Swamp

by Matthew Hay Brown

Top House Republicans say they are ready to work with Democrats on a stimulus package to boost the economy – but warn that they will oppose tax increases or wasteful spending.

“We sincerely believe that Members on both sides of the aisle and the President can work together to craft a responsible package that reduces the tax burden on families and employers so they can more effectively deal with the rising costs of living that too many Americans know all too well,” House Republican Leader John Boehner and Republican Whip Roy Blunt wrote in a letter to Speaker Nancy Pelosi on Tuesday.

“At the same time, it is incumbent upon Congress not to make matters worse by raising taxes on anyone, in any way, while ensuring the measure does not become a vehicle for unrelated spending that has no place in an economic stimulus package,” they wrote.

“This includes tax increases that may be masked as ‘offsets’ in order to comply with Congress’ ‘PAYGO’ rules. Such tax increases – on top of an already-record high tax burden, skyrocketing gas prices, and rising costs for health care and home mortgages – would be steadfastly opposed by House Republicans because of the devastating impact they would have on middle-class families and small businesses already struggling to make ends meet.”

The Congressional Budget Office, meanwhile, says that the most effective way to bolster the economy is to get money to the people who are most likely to spend it – as in the tax rebates of several hundred dollars issued to taxpayers in 2001.

“Discretionary fiscal policy stimulus (that is, legislative action aimed at providing stimulus) may not be necessary to avoid an outright recession, if most current forecasts are correct,” the nonpartisan CBO concluded in a report requested by Senate Budget Committee Chairman Kent Conrad and House Budget Committee Chairman John Spratt.

“Nonetheless, policymakers may choose to proceed with a stimulus package to bolster a weak economy and as insurance against the elevated risk of a recession. Some economists advocating a stimulus also believe that a recession, if it occurs, could prove to be unexpectedly deep; a fiscal stimulus would help reduce the severity of a recession, should one occur.”

House Democratic Leader Steny Hoyer called the report "further evidence that any economic stimulus must be timely, targeted and temporary if it is going to be effective.

“While Congress should respond to continued projections of a sluggish economy that may even fall into recession, it is also critical that any stimulus not do more harm than good," he said. "Therefore, President Bush and Congress should be careful that any package we may craft is fiscally responsible."

Bush is considering elements of a stimulus package that he could announce during his State of the Union address later this month. Pelosi and Senate Majority Leader Harry Reid have asked him for a bipartisan meeting before he makes any proposal public.

After a telephone call Tuesday with Treasury Secretary Henry Paulson, Pelosi said “it was clear that we shared a sense of urgency about current economic conditions as we discussed the parameters of what might be contained in an economic stimulus package.”

Pelosi said they also discussed the subprime mortgage crisis and “the importance of getting legislation signed into law to bring relief to families threatened by foreclosures.”

House Democrats, who have been meeting on the economy, are said to favor some combination of tax rebates, extended unemployment benefits, home heating oil assistance and food stamp increases.

The White House has been quiet on the specifics of a stimulus package, but says Bush will not support tax increases. Members of the Republican Study Committee, which is made up of conservative House Republicans, are planning to unveil a plan of their own on Wednesday.

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Comments

Hmmm, didn't "John" say regular folks did not receive a $300 rebate in 2001 yesterday?

As usual, the Loony Left lives in some sort of weird alternative reality world. The fact is taxpayers did receive a $300 rebate in 2001 and many taxpayers (working families, but not singles) received tax money in 2003.

The Bush rebate of 2001 helped offset the 2001 recession to where the economy began improving again in 2002, a mere months after the $1 trillion hit the economy received from 9/11. And the economy has expanded every quarter since.


If the economy is doing so well, why are republicrites so interested in a bipartisan stimulus package? This is obviously some strange usage of the word "expanded" that I hadn't previously been aware of. Even when republitards agree the bush economy is tanking, head in the sand dyslin insists all is well. He's rearranging deck chairs on the Titanic apparently.


little johnny,while you always spout about the "BIG" tax cut Boy George gave to the middle class,you never mention what came along with that.

DEBT.Please take as much space as you need,and have the three other wing nuts who post here help,and explain how your party,who had total control of U.S.govt.,managed to run up the highest DEBT rates in the history of this country.

We await your brilliant response!


Republics '...will oppose tax increases or wasteful spending.'

OK, so they'll be voting to bring home the troops from our failed occupation of Iraq? How about cutting the budget of the most bloated, wasteful bureaucracy on Earth...the Defense Dept? No?!?!?

Then please excuse me while I ignore more Republic nonsense.


Here's a thought, let's do what's worked in the past. President Clinton's 1993 economic plan began reducing the deficit and lowering the debt, showing markets that our fiscal house was on way to being in order. That only led to the greatest economy our county has ever known. And guess what? Taxes were raised! And guess what else? Those in the top brackets whose taxes were raised? They did just fine during that time.


John D,

I continue to wonder what world you live in.....

Republicans lecturing the Dem's on fiscal responsibility is a joke. the current "lip service" regarding the economy by Bush and his minions like drinky, blubbering Boehner is not going to fix the problems that have been created by Bush and the Republicans. Worst President ever, period!


And guess what else? Those in the top brackets whose taxes were raised? They did just fine during that time.

Posted by: Paul | January 16, 2008 10:56 AM

Simply not true. I could not afford a 55' luxury liner, a Ferrari Testarosa and a 4th and 5th home because of those tax increases. Give that money back to me Republicans. It will trickle down.


Does ANYONE, other than John D. and his clones, find it laughable that John Boehner talks about "wasteful spending"?

Wasteful spending is okay when the Republicans are doing things such as a Bridge to Nowhere, but when the Democrats talk about health insurance for kids, all of a sudden it's wasteful spending.

Then we get the Iraq war. Enough money to pay for healthcare for EVERY US citizen for YEARS.


Johnny D,
Get your facts straight. The Bush tax cuts were not designed to stave off recession. They were to give back money to taxpayers. Remember the campaign mantra. "It's your money and you should decide how to spend it, not Washington beurocrats". The tax REBATE was a proposal from the Democrats. NOT BUSH.


Paul...
The best thing B.J. Clinton did during the 1990's was getting out of the way of the free market that was released by Ronald Reagan(R) with huge tax cuts.
B.J just put the market back on cruise control and went on vacation for the rest of the decade....as noted by his inability to stop terrorist attacks on this nation.

Paulo


Per Paulo:

B.J just put the market back on cruise control and went on vacation for the rest of the decade....as noted by his inability to stop terrorist attacks on this nation.

Paulo --

1. Certainly GWB's ability to stop a terrorist attack on 9/11/01 is something you must be very proud of.

2. You forget that Daddy Bush had to raise taxes to cover for the mess that Ronnie created.

3. Can't somebody please make a sacrifice and provide Paulo with some oral gratification? He's utterly obsessed with Clinton's having received it and maybe that will diminish if Paulo gets some.


Look at all the deranged comments from the clueless of the clueless: the Ultra Loony Left.
Loon, not only did every taxpayer get a minimum $300 rebate in 2001, but the tax rates were LOWERED! Child tax credits DOUBLED. Marriage penalty ENDED. All of those DECREASES helped "WORKING FAMILIES!" Put MORE money ($) in their pockets!
Lower tax rates spurred the economy, which for the past several years has brought in MORE government revenues and in 2006 and 2007 RECORD government revenues.
Weinerbrain, "failed" policy in Iraq? Sorry, but even the Dems and media are acknowledging the surge is working and political reconciliation is taking place. There is no failure, except in the weird, demented alternative reality world that is the Loony Left.
Yes, the economy is on the downswing. That happens. We just had one of the LONGEST economic expansions in history. Bush inherited a recession from Clintoon, and now after six years of growth, it's on a downswing.
Now, as far as wasteful spending, are you folks kidding me? You all live in a state that is the joke of the nation, that has more FBI agents investigating government scandal than any other state in the union, and in which Illinois is BILLIONS behind in paying its bills. Nice going, Illinois Democrats!


Paulo


Posted by: Paulo | January 16, 2008 11:50 AM

BJ-less Paulo is undoubtably the stupidest and most easily led wingnut on the planet. He and JohnD are the only wingnuts NOT getting BJs. Of course all of the other Republican BJs are from hookers,transvestites or pages but at least they're getting some.


John D.

In your typical fashion, you aren't aware of how ridiculous your ranting really is.

You talk about how President Bush has had one of the largest expansions of the economy . . .

First of all, I'd argue with you as to how much of that expansion is due to the President's policies, but that's entirely a different discussion.

THEN you go on to complain, "in which Illinois is BILLIONS behind in paying its bills".

Oh really? Perhaps you'd like to give us a little insight as to how the REPUBLICANS and your leader, President Bush, propose to pay off the LARGEST deficit in the history of the United States?


little johnny's response:

COMICAL AND PRICELESS!!!!!!



I guess a blinkin doesn't understand the [fact] that we havn't been attacked for six years, while we were attacked 8 times at home and abroad while B.J. was on a decade long vacation, and that 9/11 was planned for 3 years under B.J's nose.

Paulo


John D...do you put war paint on your face when you turn on the computer?


You all live in a state that is the joke of the nation, that has more FBI agents investigating government scandal than any other state in the union, and in which Illinois is BILLIONS behind in paying its bills. Nice going, Illinois Democrats!

Posted by: John D | January 16, 2008 12:07 PM

Why are you lieing!!?? Unless you can show that there aren't more FBI investigations of government scandal in NJ, LA, and AK get out of my state you traitor! You cannot just make up stuff and call them facts.


"Yes, the economy is on the downswing. That happens. We just had one of the LONGEST economic expansions in history. Bush inherited a recession from Clintoon, and now after six years of growth, it's on a downswing."

Its silly to go point by point to knock down Dyslin's economic assertions, but this one I find particularly hilarious.

This is a detailed and well-reasoned smackdown of exactly the rhetoric that Dyslin uses in his "analysis." http://www.cbpp.org/8-9-05bud.htm The only category that this economic expansion outperforms that of the 1990's and others is in the area of corporate profits, which have indeed exploded in the Bush years.

It should also be noted, though Dyslin amusingly crows about it, that the expansion of the 1990's went on for four years longer than this current expansion, and the numbers in the back half of the expansion are the REALLY impressive ones. Oh, and at the end of it all, the Fed was left with a substantial surplus.

Now, we paid by some estimates over $800,000 in tax cuts for every job created. Methinks even Trickle Down Terry might be able to admit that's not a particularly impressive return on the government's investment.

"Bush's performance is the worst for job creation in the first two years of an economic recovery and second from last in gross domestic product (GDP) growth, as compared with the eight earlier postwar recoveries from recession...

The authors of "Tax Returns" observed: "Two years into the eight previous recoveries since World War II, the economy has grown at 5.7 percent." That's more than one-and-a-half times greater than President Bush's rate of growth in real GDP in the current relatively weak recovery."
http://seattletimes.nwsource.com/html/opinion/2002006779_williams17.html


There are many people who did NOT get their promised $300.00 in 2001 because they did not qualify...I know personally.

As far as the dollar amount goes, the amount of average debt taxpayers have needs WAY more than a mere $300.00 to help them, or are we just supposed to run to Wal-Mart and buy some more "stuff" made in China?


while we were attacked 8 times at home and abroad while...
______________________________
PJ, if you include home and abroad, hen we were attacked due to raygun's inabilities, bush1's inabilities, and have been attacked since 9/11 under bush2's inabilities. So by your own standard, the repulicowards have done a FAR worse job protecting Americans then the man you are infatuated with. But what do you expect from a mis-administration that likes to betray us?


Uh oh, now even the Federal Government is saying the economy is getting worse. Looks like pillow, dylien and rncbruce are going to have to cheer a little louder and wave their pompoms in the air a little higher.
______________________________
Fed Says US Economy Lost Momentum

By JEANNINE AVERSA |
AP Economics Writer
1:07 PM CST, January 16, 2008

WASHINGTON - The economy lost momentum heading into the new year as shoppers tightened their belts and manufacturers were stung by weak demand for cars and housing-related goods.

The Federal Reserve's new snapshot of business conditions around the country, released Wednesday, suggested that the strains from a persistent housing slump and harder-to-get credit are affecting the behavior of individuals and businesses alike -- making them more cautious.

The report comes as a recent string of economic indicators -- ranging from a plunge in retail sales to a big jump in the unemployment rate -- stokes worries that the country is heading for its first recession since 2001.


"CONGRESS LOSES CONGRESS DUE TO PRESIDENTIAL RECORDS MISSING DEFINING WHO IS IN CONGRESS AND WHO IS NOT"

NO CONGRESS WE DON'T WANT A STIMULOUS PACKAGE. WE'VE ALREADY BEEN STYMIED ENOUGH.

NO CONGRESS, NO HOUSE, NO MADAME SPEAKER. TODAY WE WANT IMPEACHMENT. WE WANT ACCOUNTABILITY. WE WANT OVERSIGHT. WE DON'T WANT A WATERED DOWN CONGRESSIONAL CHURN ON BEHALF OF THIS PRESIDENT AND ALL HIS MEN.

NO CONGRESS WE WANT "EMAILS" WE WANT THE GEEK SQUAD TO BE CALLED BACK OUT AND RESTORE WHAT THEY ERASED.

ERASED, DID I SAY ERASED.

NOW IMPEACHMENT SHOULD BE ON THE TABLE.

ENOUGH IS ENOUGH.

LONG LIVE THE QUEEN!


I love Lil' Johnny's note.

Of course in wingnutland, conservatism can never fail. It can only be failed. In other words, the last 7 years of Shrub and the Republic's incompetent reign is not the fault of conservative policies that don't work, but rather the failure of Shrub or the Republic Congress to adhere to some crackpot philosophy of the day. Witness 'trickle-down'. We here in the real world know that it does not work now, nor did it ever work. Yet, it the eyes of the average wingnut Republic, the solution is more tax cuts.

Or, how about this: The roads and other infrastructure is falling apart. The Republic solution: more tax cuts! Yeah, that will fix the potholes.

This is why I'm totally lukewarm on Obama. He wants to negotiate with people like these. So instead of a real solution or a fix, we're likely to get some sort of half baked compromise that pleases no one. Screw 'em. I'm tired of compromising with idiots. Half of their presidential candidates don't even believe in evolution. You don't meet people like that half way. Grrr. Rant over.


This is a bit of a primrose path, but I'll respond to Paulo @12:52.

What, exactly, did your dimwit hero do to thwart the 9/11 attacks? Hint: taking a month long vacation in August appears to have been indicative of his efforts. Your boy is/was/will always be a lazy, dumb, coward. Instead of blaming "BJ Clinton" for everything, perhaps you might consider the possibility that your beloved's conspicuous inaction is a relevant consideration.


I guess a blinkin doesn't understand the [fact] that we havn't been attacked for six years, while we were attacked 8 times at home and abroad while B.J. was on a decade long vacation, and that 9/11 was planned for 3 years under B.J's nose.

Paulo


Paulo- What world have you been living in lately? Whe've been attacked by terrorists three times in the past month.

http://edition.cnn.com/2008/WORLD/africa/01/04/sudan.diplomat/

http://www.nytimes.com/2008/01/15/world/asia/15afghan.html?em&ex=1200546000&en=fcb25a9f7547e985&ei=5087%0A

http://www.nytimes.com/2008/01/16/world/middleeast/16lebanon.html?ref=middleeast

Three times.


"John," first of all, learn how to spell LYING.
Second, you do some homework for a change and look up that more FBI agents are in Illinois investigating political corruption than in any other.
And, since you brought up New Jersey and Louisiana, those investigations into political corruption are of Democrats too, aren't they, "John?"


I guess a blinkin doesn't understand the [fact] that we havn't been attacked for six years, while we were attacked 8 times at home and abroad while B.J. was on a decade long vacation, and that 9/11 was planned for 3 years under B.J's nose.

Paulo

Posted by: Paulo | January 16, 2008 12:52 PM

Paulo, we've been attacked abroad three times in the past three weeks.

http://www.nytimes.com/2008/01/16/world/middleeast/16lebanon.html?ref=middleeast

http://www.nytimes.com/2008/01/15/world/asia/15afghan.html?em&ex=1200546000&en=fcb25a9f7547e985&ei=5087%0A

http://www.cnn.com/2008/WORLD/africa/01/04/sudan.diplomat/

Get your head out of the sand.


John Genocide D-

Where is the last Republican Governor of the State of Illinois right now?


John D,
I searched and it does in fact show that Alaska has the most FBI agents investigating political corruption. So again I ask you to STOP LYING!!! It makes YOU a LIAR. I wonder if that is a Commandment, pretty much the same as the Bill of Rights, right John D? Idiot.


Let's not forget the 4k dead Americans in a war based on lies.

I'd call that an attack.


Paul,

You want to go back to President's Clinton's largest tax increase in American history.

First, in 1995 President Clinton did not even believe that his budgets, which included the effects of his tax increase would ever balance the budget. As a matter of fact, President Clinton stated that he could see $200 billion deficitis for as far as the eye could see.

If yu want to go back to the 90's, who are you going to have be speaker of house that will rein in spending like speaker Gingrich did? Second, and most importantly, what stimulus from the private sector are you going to provide that geberated economic activity like that of the personal computer/internet?

Finnaly, please explain how raising taxes grows a slowing economy?

Tim does have a point about the GOP Congress lecturing the dems on fiscal responsibility. However, in the past year, the dems have shown no signs of reducing spending. They just want to expand gov't programs.

Bill R. - do you put on the Avon?

As far President Clinton, he opunted down the road many a terrorist problem and it is biting us in the butt now. If it had been "nipped in the bud", over 4,000 soliders lives would have been saved let alone the 100's of billions of dollars. But how was he supposed to know that 9-11 would happen?


"John," since you say you allegedly searched and found more FBI agents are investigating Alaska, then please provide that link. Or are YOU lying?
JT, how many investigations, state and federal, are currently going on in regard to the Boy Governor?
And weinerbrain, the problem is that we aren't taxed enough, but there is too much spending and nonsense. In Illinois, we have state income tax, some of the highest gas taxes in the nation, toll roads, some of the highest sales taxes in the nation, high property taxes, taxes on our phones (cell and land), cable, all utilities, special restaurant taxes, special hotel taxes, corporate taxes, worker compensation taxes, tax on bottled water in Chicago, taxes on sports and theater tickets. I could go on, but I hope, yet doubt, you and your clueless brethren get the point.


"Top House Republicans say that they will oppose wasteful spending."

HAHAHAHAHAHAHA!!!!

What did these Republic Party right wingnut dingbats do about wasteful spending when they controlled BOTH houses of Congress from 2000 through 2006?

ABSOLUTELY NOTHING!!!

The federal budget ROSE over 40% during those years - so much for Republic Party "fiscal restraint".


And, yet, BC, that 40 percent increase over 6 years (and since it began in 2000, please remember the 2000 and 2001 budgets had Clinton signatures as Bush's first budget would have been FY 2002) and which averages to better than a 6 percent increase a year, has been viewed as "budget cuts" by the high-spending libs. How many times we gonna hear how we aren't spending enough?


The underlying problem with the economy is an extreme maldistribution of income between the working class and the capital owners. When a CEO can make 300 million dollars while an average worker's wages haven't even kept pace with inflation what results is a dysfunctional market economy starved for consumption spending. The average American has had to fuel his/her spending with debt obtained by borrowing on the equity within their home - that phantom equity has now evaporated.

In order to correct this out of balance condition there needs to be laws in place (similar to the anti-Trust legislation) that caps the annual income of all capital owners and their surrogates (CEOs, CFOs, etc.) at a specific federal percentage above that of the highest paid worker within their respective firm. Also, we need to eliminate labor arbitrage by canceling all Temporary Worker Visa programs (L-1, H1-B, etc.), and establish tax penalties for firms that expand their workforce above some threshold through outsourcing, or replacement hiring in foreign locations.

Essentially, FDR was accurate when he characterized the Great Depression as an out-of-balance Economic malady. Rural income prior to the Great Depression was significantly lower than urban income, now (overvalued home equity) as then there was unlimited amounts of overvalued phantom equity flowing into the stock market, the income differential between labor and capital while nowhere near the current astronomical level was still much higher than sustainable. There in lies the root cause of the out-of-balance condition that precipitated the Great Depression. Any system including the market economy that gets to far out balance does not function properly. Certain constraints need to exist to keep the market economy from slipping into a dysfunctional state. Balance is the essence of stability nothing short of this will guarantee permanence.


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