Super Committee

GOP's False Claim Of Proposing Higher Taxes On The Rich Spreads (VIDEO)

Brian Beutler | November 22, 2011, 2:34PM

This is how bad information spreads. Channeling Washington Post columnist Robert Samuelson, Mort Zuckerman -- the billionaire real estate and media mogul -- claimed on MSNBC Tuesday that Republicans on the super committee had broken with their anti-tax orthodoxy and proposed to increase taxes, modestly, on upper income Americans.

Here's Zuckerman:

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Super Committee

CHART: The More Congress 'Fails' The More The Deficit Goes Down

Brian Beutler | November 21, 2011, 12:11PM

shutterstock/ gary718

The Super Committee is poised to fail after markets close on Monday -- which is to say the 12 members weren't able to agree on a package of new revenues and lower spending to reduce the deficit by at least $1.2 trillion over 10 years. That was their charge, and insofar as they didn't do what they set out to do, they "failed."

But if Republicans and Democrats keep failing to agree on this stuff for the next year and change, the result will be an extraordinary decrease in federal deficits -- many multiples of what the Super Committee was tasked with finding.

We've been over this before, but the point is actually stronger now than it was earlier this year, because of the outcome of the debt limit fight. Between the looming expiration of the Bush tax cuts and other temporary tax provisions ($4.8 trillion), a large, scheduled drop in Medicare physician reimbursement rates ($300 billion), the soon-to-be triggered penalties for Super Committee failure ($1.2 trillion), and the resulting savings on servicing the national debt ($900 billion), deficits are set to drop by over $7 trillion automatically, unless Congress affirmatively stops it. That's on top of the $1 trillion-plus dollars Congress banked in the debt ceiling fight.

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Jobs

Free Money! Why The U.S. Can, But Isn't Putting New Jobs On The Credit Card

Brian Beutler | November 9, 2011, 1:50PM

Dmitry Rukhlenko / Shutterstock

Here in the United States, Republican lawmakers are busy blocking plans to spend money on jobs and infrastructure improvement, while both parties work in earnest to find ways of cutting $1.2 trillion or more from the budget over the next 10 years.

They're doing this at a time when demand for America's debt is so high that investors will essentially pay the U.S. to borrow.

You read that right. Here are the numbers. They may appear hard to parse, but it's pretty straightforward: when you adjust for inflation, the interest creditors get for parking their money here is negative. That's not a deal you'd accept from your bank, but it's the deal we're getting now.

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Super Committee

CHART OF THE DAY: The GOP's Miniscule Super Committee Tax Offer

Brian Beutler | November 2, 2011, 9:51AM

With perhaps a week before the deficit Super Committee has to submit its proposals to Congressional scorekeepers in order to pass a plan by its late-November deadline, members remain far apart -- and the GOP's refusal to accept new tax revenues is at the heart of the matter.

Republicans would dispute this -- they claim they've been willing to entertain hundreds of billions in new receipts for the government and Democrats aren't serious about truly cutting entitlements programs. But pair the details of their two competing offers -- both of which were leaked to the press in recent days -- and the true source of gridlock becomes completely clear.

The Center on Budget and Policy Priorities -- no fan of the Democrats' own plan -- paired the numbers properly. CBPP noted that, contrary to standard budgeting, Republicans counted proposed fees, like increases in Medicare premiums, as "revenues," even though such cost shifting isn't a tax change, and is typically considered spending reduction. CBPP also completely hived off $200 billion Republicans claimed would result from the secondary economic effects of their plan, since there's little evidence to back up such "dynamic scoring."

The problem speaks for itself.

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