Kevlar Bullshit

Way back near the beginning of his Presidency, Barack Obama vowed to created a "deficit reduction panel." The purpose of this panel was to inject some reality into an all-to-unreal conversation. Republicans have been harping for two years on the increasing budget deficit (projected to eclipse $1 trillion for the 3rd straight year). To ensure we are on the same page here:

The "budget deficit" is simply the difference between how much money the government brings in in revenue (i.e. taxes) and how much it spends. This number starts over every fiscal year. The "national debt", on the other hand, is the sum of budget deficits over time. For example, if we had a deficit of $10 for the last 4 years, we'd have $40 in national debt. It is actually, and you better sit down, a bit higher than $40. Try not to be bothered by these large numbers though. While the nuts and bolts of fixing the problem is quite complex, understanding it is as simple as balancing your checkbook. If we spend more than we bring in...we'll be in debt.

The Republicans ran on a platform of "reigning in out of control government spending". Their first order of business is to permanently extend the Bush tax cuts for everyone. Democrats would like to only extend those tax cuts for individuals and couples making less than $250,000 per year, and the 3% tax cut to expire for those making more. The Republican plan would cost the nation $700 billion over the next decade. Put another way, it will ADD $70 billion a year to our budget deficit for the 10 years. I'm no math major, but ADDING $700 billion to something does not make it smaller.

Anyway, back to the "deficit reduction commission". Confronted with the reality of such absurd proposals, Mr. Obama decided to use a Republican idea and created the commission (composed of civilians and government officials and equally divided between Republicans and Democrats). The Republicans, of course, quickly filibustered their own idea to protect against being seen doing something. President Obama created the panel by executive order. That panel came out with their initial suggestions yesterday. Let's go over the proposals and see how badly poor people are getting screwed by the latest "ideas" coming out of Washington. Quickly, let's again remember that historical irresponsible lending and investing by Wall Street banks got us into this mess. Remember also that our budget deficits are NOT ONLY THE RESULT OF SPENDING, but also the result of less tax money coming in. That's what happens when unemployment is almost 10%. That's 10% of the workforce not paying taxes. On to the proposal.

Reform the Tax Code

This is a good principle to start with. Many correctly note, and my buddy Brody can attest, that the tax code is too complex. It is probably fair to estimate that if you have to hire outside help for doing your taxes, it's too complex. It is riddled with deductions in this special circumstance, but not that. It has tax loop holes for companies and rich folks that poor folks don't have access to. This panels idea is to...wait for it...cut taxes! Yes, while we are bringing in such low revenue, the panel suggests the historical unsuccessful at doing anything good technique, cutting taxes.

But wait, they say, we are going to eliminate some of those loopholes and deductions so that we will still raise more revenue. Ah, ok. So which ones?

Mortgage Deduction: Let's see, who will this screw? Middle and low income families are struggling to stay in their homes as it is. In case you've been, well probably you'd have to have been dead, foreclosures are a problem, to say the least. If you take away the mortgage deductions many of those families may not be able to stay in their homes. This is truly one of the few major tax breaks that comes for middle and low income families. Ok, 1 for 1.

Employer Health Insurance Deduction: Now, at first this seems like it would hurt business owners. However, a moderate amount of thinking will make you realize that this would provide the political cover for companies to stop offering employee health insurance. Even with the new health care bill, buying private insurance will be more expensive and more difficult. Again, screwing the middle and low income folks. 2 for 2.

Social Security

The plan here to to lower the "cost of living" (COLA) increase that comes to seniors. Who needs that COLA? Certainly not folks who have a nice retirement portfolio. Also, the plan would gradually raise the retirement age. It is also here that you can make an argument that poor people aren't getting screwed as much, as the plan suggests paying out more social security to lower income folks and less to higher income folks. A bold step indeed considering the fact that most wealthy folks don't depend on social security much, if at all, because they have their own nice retirement accounts. Also, remember that many companies are rolling back pension plans for their work-force, so those old "middle class" jobs are not providing that service as often as they used to. However, raising the retirement age screws poor people. Studies show that people working in lower income jobs don't live as long as those working in higher income jobs. There are a lot of sociological reasons for this that I'm sure you can imagine, but the point is, by raising the retirement age for all, you are, again, screwing the poor people the thing they look forward to the most, quitting their shitty job, until it may be too late. 3.5 out of 4 for the race to screw poor people the most.

Medicare

The plan here suggests that seniors pay a co-pay for their services. Now this sucks for all seniors, but if you have the "extra" cash to pay for it, you'll be pissed but live. If you don't have the "extra" cash, then what? Again, screwing poor people. 4.5 out of 5.

This proposal is supposedly a "starting point" for discussing the "painful" choices that we have to make about our budget future. We all must "sacrifice" they say. If by "we", I think the rich guys mean "us". The panel really made those 5 main suggestions along with some other less drastic ones. Out of those 5, 4.5 screws poor people. Some starting point. So let's set the picture again for you:

Wall Street bankers and rich government officials game the system since 1980 deregulating banks, making bad loans, "creating" financial products that mean nothing but cost everything, commit fraud on a historic scale both in foreclosing on people's homes and the "investment" packages they sold containing those mortgages. In addition they lobbied Congress for the Bush tax cuts, which overwhelmingly favored them and apparently did nothing to improve the economy or create jobs like conservative dogma suggests. Fact is, they were in place through most of the 2000's and we are still where we are. Fact is, they have been, and are, in effect right now and we have almost 10% unemployment. The argument Republicans are making is, "let's keep doing exactly what we are doing and maybe we'll get a different result."

All that is true, plus the fact that our tax dollars bailed out those banks and auto companies. Plus the fact that those same banks are still foreclosing on those people who bailed them out by circumventing the law. And now they put forth a plan that calls for "shared sacrifice" that appears to only be shared by us.

President Obama, for his part, has waited to make comment until the official report is released, which should be around Dec. 1st. What he should of said..."Poor people are not going to pay for our sins. This report is complete bullshit, and go fuck yourself."

Or something like that...