It looks like Congress is on board with the two-year extension of the Bush tax cuts. As I understand it, this will cost upwards of $800 billion in foregone tax revenue. Even if I’m wrong by a hundred billion or so, that’s hundreds of billions more than the net cost of the original TARP bailout, you know, AIG, GM, Wall Street and so on.
Isn’t that the program that the Republicans ran against (even though it started with the Bush Administration)?
Everything I’m reading says the GOP and the Dems are just going to yell over the other guys heads leading up to the 2012 elections and no one is going to cut any meaningful spending.
Maybe it’s just me; but, if everyone agrees that we can’t continue what are crushing deficits which will only cascade if spending isn’t cut, what the hell are they doing increasing the deficit?
W and Congress (and yes there were and are Dems in it) cut taxes with the idea that it would grow the economy which would result in more taxes being paid, reducing the deficit. How did that work out, as the good Sarah would ask?
I’m too lazy to go find out how GDP, federal spending and tax revenue have changed but here’s the net result, the gross debt according to the Treasury Department:
The last decade of government cost about $8 trillion more than it took in. And we’re going to add 10% to that in the next day or two. Then we’ll “talk” about cutting spending. Of course, defense spending, Social Security, Medicare, Medicaid and all the other big ticket items are off the table, especially while our leaders are angling for political advantage.
As Sarah would say, how ya think that’s going to work out?
I’d say we’re screwed. We’ve met the enemy, the enemy is us – we want and we elect people that give us what we want.