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Congress Votes Tomorrow On Everything That Will Happen For The Rest Of Obama’s Presidency

Congress West Front Late last night, House GOP leadership announced a compromise bill that will (temporarily) end all the Congress-created crises by setting the federal budget and suspending the debt limit through the end of the Obama presidency.

The House is expected to vote on the bill tomorrow (Wednesday). A draft of the bill is available here.

What it doesn’t do, from the perspective of the Right Wing:

  1. It doesn’t try to force through the Keystone XL Pipeline.
  2. It doesn’t try to de-fund Planned Parenthood.
  3. It doesn’t try to repeal the Affordable Care Act.
  4. It doesn’t try to voucherize Medicare.
  5. It doesn’t try to privatize Social Security.

What it doesn’t do, from the perspective of the Working Class:

  1. It doesn’t rein in corporate giveaways to stockholders, such as dividends and buybacks. (Trillions of dollars that corporations could have used to create jobs, pay fair wages and make long-term investments.)
  2. It doesn’t end the tax preference for unearned income. (Most investment income is still taxed at about half the rate of wage income.) Ending this tax preference could end the budget deficit.
  3. It doesn’t eliminate the Social Security wage cap (which would strengthen Social Security, long-term).
  4. It doesn’t raise the minimum wage.
  5. In its current form, it doesn’t do much to reverse previous cuts to Food Stamps, veterans benefits, and other safety-net programs. It doesn’t mention the 2.1 million American workers who are long-term unemployed… or the 1-in-five American children who are living in poverty.

What it does do:

  1. It loosens the Sequester budget restrictions, both for defense and non-defense spending – and it also increases an off-budget military spending account.
  2. It completely rewrites the procedures governing IRS audits of business partnerships. (Call me cynical, but I’m guessing that part of the bill was written by somebody’s lobbyist.)
  3. It diverts some Social Security tax revenue into the Social Security Disability Trust Fund, and *privacy alert* it also creates a new information clearinghouse (presumably, to be used to detect fraud).
  4. It reduces payments to some Medicare providers and regulates the increase in Medicare supplement policy premiums.
    AND
  5. It renames the small House rotunda… in honor of the House Freedom Caucus.

It does some other things. Please take the time to read through the bill yourself – and encourage your Congressional representatives to do the same. Contact information for those representatives is available here.

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Having watched this impossibly deadlocked Congress — and its impossibly intransigent Right Wing

Personally, if this “grand compromise” happens, I don’t expect anything else to get through this Congress until President Obama leaves office.  (Remember, GOP extremists have been working to “submarine his presidency” since the very first day of his first term.)

“GOP VALUES” — How The GOP Shows Favoritism to Unearned Income over Hard Work

Something else I don’t understand about Republican dogma…

GOP rhetoric seems to idealize the virtues of hard work:  “Pull yourself up by your bootstraps.” “Just get a job.”  “Quit freeloading.” It’s like they actually believe the Horatio Alger myth.

But look at our federal tax structure, and the changes Republicans have forced through since Ronald Reagan.   There is no reward for hard work.  Instead, our current tax system is tilted strongly in favor of those who already have money.  Investment income — unearned income — is now taxed at about half the rate of wage income.

Flashback to the 2011 debt-ceiling crisis: “Even an architect of the Bush tax cuts, economist Glenn Hubbard, tells Rolling Stone that there should have been a ‘revenue contribution’ to the debt-ceiling deal, ‘structured to fall mainly on the well-to-do.’ Instead, the GOP strong-armed America into sacrificing $1 trillion in vital government services – including education, health care and defense – all to safeguard tax breaks for oil companies, yacht owners and hedge-fund managers. The party’s leaders were triumphant: Senate Minority Leader Mitch McConnell even bragged that America’s creditworthiness had been a ‘hostage that’s worth ransoming.’ ”

Now, let’s look at the impact that this VERY ODD tax preference has had on the US economy.

What happens, when our tax system rewards investment income, rather than actual work?

  1. Private equity “investors” use acquired corporations to borrow money – and then use that borrowed money to pay themselves dividends.  “Investment”?  Not hardly.  The acquired corporations go belly-up when they can’t pay pack the debt, leaving hundreds (or thousands) of workers unemployed.  Read “What Mitt Romney Taught Us about America’s Economy.”
  2. CEOs take more compensation as dividends, rather than wages.  Even accounting for inflation, top-tier taxpayers took home six times more dividends in 2009 than in 1992.  “But each dollar paid to the CEO in dividends costs the company (and the economy) a whole lot of money that could have been reinvested. Going back to Fred Smith as an example, his 15 million shares in the company represent only a fraction of the outstanding stock. For Mr. Smith to receive $8.5 million in dividends, personally, the company has to pay out well over $100 million in total dividends – money that could have been invested in new hires, or new planes, or new facilities (or improved employee benefits).”
  3. Some of those CEOs “invest” that money in politics.  And the cycle repeats itself.

“Pull yourself up by your bootstraps”??!? Bootstraps are getting very hard to find, these days.

(But please don’t shop for them at Walmart.  The corporation’s “Lowest Prices” policy has had a devastating effect on the US economy.  “Wal-Mart has the power to squeeze profit-killing concessions from vendors. To survive in the face of its pricing demands, makers of everything from bras to bicycles to blue jeans have had to lay off employees and close U.S. plants in favor of outsourcing products from overseas.”   Meanwhile, Walton family members – who receive about half of all dividends paid by Walmart – are doing just fine.)

“Negotiate” means talking about ALL options

Golly.  The GOP still hasn’t figured out what’s driving the federal debt?  Let’s try… lack of revenues.

Federal revenues, as a percentage of the country’s economy, are at the lowest point since Harry Truman was President.  (And that was before Congress enacted Medicare, and added Medicare payroll taxes to the federal revenue mix.)

Corporate taxes, in particular, are at record-low levels.  (Just look at the olive-green areas on this graph.)

Federal Revenue Sources as percentage of GDP

The GOP insists on “concessions” from President Obama, in exchange for not driving America’s economy totally off the cliff.

They are insisting on cuts to Social Security and Medicare before they will consider acting on the debt limit.  “My goal here is to have a serious conversation about those things that are driving the deficit and driving the debt up,” according to House Speaker John Boehner.

But will they discuss restoring revenues, as a way of cutting the deficit?  Not a chance, the GOP says.

Wow.

Is Speaker Boehner really contemplating a “conversation”?  (Or is he just expecting the Democrats to surrender?)

————

See the data I used in my graph here.

GOP in Congress: Keeping — or BREAKING? — Promises

Crossed fingers ICan someone please explain to me… how can the GOP be simultaneously

What, exactly, is the big difference?  For Social Security and Medicare, people have paid money into the system, with the expectation that they would receive an agreed-upon return (benefits) at a later date.  Just the same way that bondholders have loaned money, with the expectation that they would receive an agreed-upon return (principal plus interest) at a later date.

Would bondholders be happy if House Budget Committee Chairman Paul Ryan suggested trimming bond repayments between 15% and 45%?  So why should people who have paid into Social Security accept those kinds of cuts?

Let’s see… if Ryan reduced federal bond payments by 15%, wouldn’t that free up about $54 billion a year?  Wait… wouldn’t that more than cover the $40 billion of cuts to the Supplemental Nutritional Assistance Program that Republicans want to make?

Pediatricians at the Boston Medical Center have studied the interaction between hunger and health, and yesterday announced that SNAP was “one of America’s most cost-effective and successful public health programs in the country” and by improving children’s health, SNAP actually “saves society money.”  Except that Republicans want to cut children’s health insurance, too.  At this point, you halfway expect House leadership to start quoting Jonathan Swift.  But I digress.

Or if Ryan reduced bond payments by 45%, wouldn’t that free up about $162 billion a year?  Which would more than cover the revenue cost of not returning to Clinton-era tax rates.

But the GOP isn’t suggesting that bondholders should absorb those sorts of cuts…oh, no, that would be unthinkable.  So why would they think that Social Security recipients are fair game?

You pay your money in, you expect to get it back as promised.

Here’s what I think will happen, during the next few weeks of government shutdown/debt-limit crisis.  I think the Republicans will stop using Obamacare as their line in the sand/can’t compromise issue.  I think they will switch to insisting on some sort of “Entitlement Reform” in exchange for not driving our economy totally off the cliff.  And “Entitlement Reform” is Tea Party lingo for making cuts to Social Security, Medicare and Medicaid.

At one level, I guess it’s fair to lump Social Security and Medicare into the category of “entitlements” – you pay your money in, you’re entitled to get it back as promised.

Just like the US Treasury’s bondholders are entitled to get their money back as promised.

I’m wondering how the GOP is going to explain the difference between those promises, over the next few weeks.  Can’t imagine what rhetoric they will come up with, to justify holding bondholders harmless while trying to cut Social Security benefits.

 

Want to keep the government afloat? Here’s the list of House GOP demands


Just like the old Ginzu Knife commercials… “But wait, there’s more!”

Yes, House GOP leaders are insisting on a one-year delay of Obamacare (aka, the Affordable Care Act) as a condition of resolving this latest federal fiscal fiasco.

But that’s not all they’re looking for.

As compiled by the New York Times, here’s the list of House GOP leaders’ other demands:

…fast-track authority to overhaul the tax code, construction of the Keystone XL oil pipeline, offshore oil and gas production and more permitting of energy exploration on federal lands… roll back regulations on coal ash, block new Environmental Protection Agency regulations on greenhouse gas production, eliminate a $23 billion fund to ensure the orderly dissolution of failed major banks, eliminate mandatory contributions to the new Consumer Financial Protection Bureau, limit medical malpractice lawsuits and increase means testing for Medicare, among other provisions.

Does anybody (other than Fox News and a few hundred Internet trolls) still think the House leadership is trying to “compromise” and resolve this latest Congress-created crisis?

 

GOP House Members still fighting? Gonna be costly.

No, it’s not de ja vu. It’s just that… so much of it is still exactly on-point.  Wish it wasn’t, but it is. So, with very few updates, here’s a repeat of my post from February 6, 2013:

————————

Last person leaving, please dock the doorsHoping for bipartisan cooperation, now that the election is over? Think again.

The weekend before the inauguration, Republicans gathered in Williamsburg to discuss strategies for “fighting” the President. Just a week later, former Vice Presidential candidate Paul Ryan was telling a gathering of conservatives that “Republicans control both the House and most of the statehouses. So we have to oppose the president and the Senate on some fronts—and engage them on others…”

Does that sound like cooperation to you?

Looks like it’s going to be an interesting next few months. Two dates to mark on your calendar:

On March 1st, the sequestration cuts are scheduled to go went into effect. Cutting government services through these automatic, across-the-board cuts is expected to send the economy back into recession. One example: according to a study commissioned by the airline industry, the FAA’s share of the sequestration cuts is about $1 billion a year. That cut would reduce the nation’s air traffic between 5% and 10%, and the country would lose between 66,000 and 132,000 jobs related to air transportation. The irony? The economic losses would cause tax revenues to drop by as much as $1 billion a year. (Hmmn… $1 billion in tax revenues lost because of a $1 billion spending cut. Not a whole lot of deficit-reduction going on, is there?)  After members of Congress were inconvenienced by airport delays, the FAA was granted special treatment under the sequestration act.  Recent estimates of the economic costs of sequestration include:  1.6 million jobs and 1.2% of GDP.

On March 27th  September 30th, the “continuing resolution” that funded federal government expired. That means a possible “government shutdown”. According to Politico, a majority of GOP House members “are prepared to shut down the government to make their point. House Speaker John Boehner ‘may need a shutdown just to get it out of their system,’ said a top GOP leadership adviser.”

What happens if the government shuts down? Federal employees who are deemed “essential” are still required to go to work – they just don’t get paid until after Congress approves a bill to pay them. The last time there was a significant government shutdown, almost a half-million federal employees were required to work without pay for three weeks.

The economic damage went far beyond the family finances of federal employees. The crisis also caused 11 states to suspend unemployment insurance, due to lack of federal funds. Veterans’ services were suddenly unavailable (including counseling, vocational rehabilitation, and pension and education payments). The crisis affected the oil industry, leaving more than 10,000 barrels a day untapped while companies waited for federal reviews. The tourism industry suffered millions of dollars in losses each day of the shutdown, because passports and visas were not processed. The housing industry suffered when $800 million worth of mortgage loans were delayed. The crisis halted cleanup of 609 toxic waste sites. It left hundreds of thousands of children in limbo, waiting for foster care or adoption.

And that was only a partial government shutdown. Most of the government still had funding, during that shutdown. (Just imagine what may happen on March 27th! now!)

There’s a moral here, folks. Government services are integral to our nation’s economy.

Is there any hope that Congress could learn that lesson, in the next month or so? Or is the GOP going to insist on doing economic damage, “just to get it out of their system”?

It’s Baaack! GOP puts US economy at risk (again) over the Keystone Pipeline

Trans Canada Keystone Oil Pipeline by Shannon Patrick via FlikrJust like an unwanted dinner guest that you can’t convince to leave, the Keystone Pipeline project is still on the GOP’s legislative agenda.  Actually, it’s now at the top of the GOP’s legislative agenda.

Read the news stories: Republican leaders have apparently given up on efforts to rein in their Tea Party legislators.  Last Friday, the House voted – for the 42nd time – in their futile attempt to repeal Obamacare.  Next Monday, the federal government is probably going to close down – because Congress can’t bring itself to pass annual Appropriations bills.  Jobs bills – and legislation to repair long-neglected roads and bridges – are gathering dust on Representatives’ shelves.  Immigration reform isn’t going anywhere.  Common-sense gun reform?  Yeah, right.  (About 8,400 Americans have been killed in the nine months since Newtown.  Crisis?  How many people have to die before Congress considers it a crisis?)

But no matter what else they’ve given up on, Republican leaders are still determined to force through TransCanada’s pipeline project.  Sometime in the next month or so, Republicans plan to use debt-ceiling legislation to bypass the administrative review process and authorize construction of the pipeline by Congressional fiat.

No, it’s not the first time the GOP has used fiscal emergencies to try to push the Keystone project through.  Back in December 2011, the Republicans traded about $30 billion in federal debt for an expedited review process (which resulted in the project being rejected).  Since then, House Republicans have inserted Keystone into four other pieces of legislation, including the federal budget.

But why does Congress even care about Keystone?  TransCanada’s pipeline is nothing more or less than a construction project built by and benefitting a private corporation.  Sort of like… if Walmart wanted to build another gazillion-square-foot distribution center.  (Except that a new Walmart distribution center would probably create more than 35 permanent jobs.  Yep, that’s the number of permanent jobs that Keystone is expected to create: just 35.)  So why is Congress getting so involved in the project permitting?

One more time: Keystone is a construction project of a privately-owned corporation.   (Wondering exactly who owns that corporation?  According to Morningstar’s shareholder records, it looks like a whole lot of TransCanada stock is owned by foreign banks.)

One more time: WHY are the Republicans insisting that TransCanada be allowed to build this pipeline?

And whatever happened to “fiscal responsibility”?  Do Republicans really want our government to default on its bills?  That’s the scenario they’re setting up, by tying the debt-limit increase to construction of this private pipeline.

—–

You can read (experience?) the GOP’s latest press release about Keystone here.

Read NHLN’s “Why Is the House GOP Obsessed with the Keystone Pipeline” here.

Barry Goldwater explains: why Chained-CPI is such a big, hairy deal

Bactrian Camel by Just_Chaos via flikrBack in 1958, Barry Goldwater explained his opposition to a bill this way:   “If the camel once gets his nose in the tent, his body will soon follow.”

In other words: a tremendous – unwanted – change can be started by a little tiny encroachment… and then the rest of the change will come right along behind it.

Those of us in the union movement have seen this strategy in action, too many times to count.

Recognize this scenario?  Workers used to have fully-paid health insurance.  Then management insisted on a small “contribution” toward the cost.  Then premiums were “shared”.  Now, in too many workplaces, there is no health insurance at all.

How about this one?  Workers used to have employer-sponsored pension plans.  Then employers insisted on moving to 401(k) plans.  Now, very few jobs (other than at the CEO level) offer any type of retirement plan at all.

Or this one?  Union workers used to have job security.  Then employers insisted on contract amendments so they could hire part-timers or contractors “in emergencies”.  Now, some worksites are staffed entirely by part-timers or contract employees, and job security is very, very hard to find.

As Barry Goldwater described things: It’s the camel’s nose, creeping in… and the rest of the camel soon follows.

And that’s why union leaders are reacting so strongly to proposals that would change Social Security benefits by tying Cost of Living Adjustments (COLAs) to “chained CPI” (rather than the usual Consumer Price Index).

Union members have had enough experience with this strategy; by now, we recognize a camel’s nose when we see one.

The idea of “privatizing” Social Security has been rattling around the Republican Party since Barry Goldwater ran for President.

But it hasn’t happened yet – despite the recent best efforts of George W. Bush and Paul Ryan.

So during debt limit negotiations in the summer of 2011, the Republicans took a different tack.  Rather than trying to get the camel in through the tent door… they just asked for a little, tiny change to the way that Social Security COLAs are calculated.  Just one little, tiny change.

That debt limit crisis was resolved – with the camel’s nose still outside the tent – by the deal we all know as “sequestration”.  And since that time, the Fiscal Cliff has passed and a possible government shutdown has been avoided.  But that one little tiny change to Social Security has remained a Republican priority.

The White House held a press briefing the day before President Obama’s budget was filed.  One important point from that briefing was never covered by the mainstream press:

[S]enior administration officials characterized the official adoption of Chained CPI as both a recognition that rounding out a grand bargain will require making concessions to the GOP, and as a final gesture of good faith to Republicans in Congress… But the officials also stressed that Chained CPI will never become law unless Republicans respond (in unlikely fashion) by agreeing to limit tax expenditures benefiting high-income earners.  If they don’t, it will mark the end of Obama’s two-year quest to secure trillions of dollars in deficit reduction on a bipartisan basis.

In other words, don’t believe new National Republican Congressional Committee Chairman Greg Walden when he talks about chained CPI as “a shocking attack on seniors.”

How can it possibly be “shocking”, Rep. Walden?

Republicans have been trying to “reform” Social Security since Barry Goldwater ran for President, almost half a century ago.

And Barry Goldwater knew full well how to get a camel into the tent.

 

GOP House members still in a “fighting” mood?
Could be very costly.

Last person leaving, please dock the doors
Hoping for bipartisan cooperation, now that the election is over?  Think again.

The weekend before the inauguration, Republicans gathered in Williamsburg to discuss strategies for “fighting” the President.  Just a week later, former Vice Presidential candidate Paul Ryan was telling a gathering of conservatives that “Republicans control both the House and most of the statehouses.  So we have to oppose the president and the Senate on some fronts—and engage them on others…”

Does that sound like cooperation to you?

Looks like it’s going to be an interesting next few months.  Two dates to mark on your calendar:

  • On March 1st, the sequestration cuts are scheduled to go into effect.  Cutting government services through these automatic, across-the-board cuts is expected to send the economy back into recession.  One example:  according to a study commissioned by the airline industry, the FAA’s share of the sequestration cuts is about $1 billion a year.  That cut would reduce the nation’s air traffic between 5% and 10%, and the country would lose between 66,000 and 132,000 jobs related to air transportation.  The irony?  The economic losses would cause tax revenues to drop by as much as $1 billion a year.  (Hmmn… $1 billion in tax revenues lost because of a $1 billion spending cut.  Not a whole lot of deficit-reduction going on, is there?)
  • On March 27th, the “continuing resolution” that funds federal government will expire.   That means a possible “government shutdown”According to Politico, a majority of GOP House members “are prepared to shut down the government to make their point. House Speaker John Boehner ‘may need a shutdown just to get it out of their system,’ said a top GOP leadership adviser.”

What happens if the government shuts down?  Federal employees who are deemed “essential” are still required to go to work – they just don’t get paid until after Congress approves a bill to pay them.  The last time there was a significant government shutdown, almost a half-million federal employees were required to work without pay for three weeks.

The economic damage went far beyond the family finances of federal employees.  The crisis also caused 11 states to suspend unemployment insurance, due to lack of federal funds.  Veterans’ services were suddenly unavailable (including counseling, vocational rehabilitation, and pension and education payments).  The crisis affected the oil industry, leaving more than 10,000 barrels a day untapped while companies waited for federal reviews.  The tourism industry suffered millions of dollars in losses each day of the shutdown, because passports and visas were not processed.   The housing industry suffered when $800 million worth of mortgage loans were delayed.  The crisis halted cleanup of 609 toxic waste sites.  It left hundreds of thousands of children in limbo, waiting for foster care or adoption.

And that was only a partial government shutdown.  Most of the government still had funding, during that shutdown.  (Just imagine what may happen on March 27th!)

There’s a moral here, folks.  Government services are integral to our nation’s economy.

Is there any hope that Congress could learn that lesson, in the next month or so?  Or is the GOP going to insist on doing economic damage, “just to get it out of their system”?

 

Less than a month to go! Republicans are chasing wild geese while the federal government heads toward default

Canadian GeeseThere’s less than one month to go until the federal government can’t fudge its debt limit anymore. Last week, the US Treasury announced it could run out of artificially-created “headroom” as soon as mid-February.

Ever since then, Republicans have been trying to turn the debt-limit headlines to their advantage. But if you look closely enough at these “wild goose chases”, they just show the growing distance between GOP rhetoric and the reality the rest of us are living in.

——————–

Their first idea? Wait things out. Then, once the Treasury runs out of headroom, just pick and choose which bills to pay. Or, in Republican-speak, “prioritize spending.” Their priorities, according to Reuters: pay the bondholders first; then pay Social Security and military salaries.

The first problem with this idea? The Treasury’s Inspector General has already told Congress that “prioritizing spending” is not – at this point in the crisis – actually possible.

Treasury noted that it makes more than 80 million payments per month, all of which have been authorized and appropriated by Congress… Treasury’s [accounting and computer] systems are designed to make each payment in the order it comes due.

In other words, the system simply isn’t set up to pay some bills and ignore others. How long would it take to completely restructure the federal government’s payment systems, in order to “prioritize” which bills get paid? Undoubtedly longer than the debt-limit “headroom” will last.

Second problem with this idea? How much money will it cost, to restructure the Treasury’s payment systems? Maybe some GOP campaign contributor would be the only IT vendor qualified to make those changes. But wouldn’t that money be better spent on other things?

Third problem with this idea? Stop and think about this, for a minute. Do we really want our country to stop paying its bills, even just some of its bills? Do we really want our country to fulfill its obligations to a select few, and ignore the rest? What would that say about America? (Maybe this is really the first problem with this idea. What are the Republicans thinking?)

——————–

So then, the Republicans went off to a retreat at the Kingsmill Resort in Virginia. (I’m guessing the GOP missed the irony in starting Martin Luther King Day weekend at a former slave plantation. Whatever happened to the Party of Abraham Lincoln?)

There, among three championship-caliber golf courses, GOP members announced their newest idea to deal with the debt limit crisis. The House GOP will concede to a three-month increase in the debt limit, but only if Congress passes a budget within those three months.

Peter PanOk, it’s starting to sound like Peter Pan’s “Neverland” here. Congress created the debt-limit crisis by approving spending but refusing to authorize the debt limit increase. Now the GOP wants to postpone that crisis by creating another crisis.

If nothing else, this really ought to draw attention to just how dysfunctional Congress has become in recent years. They’re answering one failure of Congress with another failure of Congress.

Yes, passing a budget is one of the Legislature’s most fundamental responsibilities. And yes, it has been years since Congress actually passed a federal budget. But isn’t it time to ask, why?

Think about the usual budget process (which is very similar to the way New Hampshire’s Legislature passes the state budget). Usually, the House passes a version of the budget. Then the Senate passes a version of the budget. Then a conference committee figures out a compromise between the two versions. Then the conference version goes back to the House and the Senate for an up-or-down vote.

Do you really think the House and Senate are going to be able to agree on a version of the budget in the next three months?  Congress has been at a stalemate for years.  The last Congress was the most unproductive Congress since they started keeping records.  [Want to know what they did manage to agree on? 17% of the bills that were actually passed involved naming post offices or other public buildings].

But now, after a few days’ “retreat” at a plantation-turned-resort, House GOP members think they’re going to be able to turn this situation to their advantage.

No word yet on whether this latest Republican goose-chase is going to amount to anything more than just weekend headlines.

——————–

Wondering what’s the latest on that “headroom”?

If you remember, our federal government hit the debt limit on December 31st, and the US Treasury started taking “extraordinary measures” to keep the country from defaulting on its obligations.

Smashed Piggy Bank RetirementLast week, the Treasury started starting paying government bills by using federal employee retirement funds to create “headroom” under the debt limit. The “G Fund” is a 401(k)-style retirement program with more than 3 million enrollees, including members of the military.

The law allowing retirement monies to be used to create “headroom” also promises to make members’ accounts “whole” after the crisis has passed. That’s what happened the last time there was a debt limit crisis, back in August 2011; and what happened after the debt-limit crises in 2006, 2004, 2003, and 2002. [Wait… am I just imagining there’s a correlation between debt-limit crises and the Bush-era tax cuts?]

But there’s no word on what happens if this particular debt-limit crisis isn’t solved.

And, no word on what happens if House Republicans decide they want to “reform” federal employees’ retirement benefits again.

———-

And yes, those unaffordable-but-Congressionally-mandated US Postal Service payments are part of the “extraordinary measures” the Treasury is now taking to keep our government from defaulting on our debt.

“The Postal Service would still have positive net revenue today except for … a requirement that Congress imposed on it in 2006. No other public or private business in America faces this onerous requirement.” Read the letter signed by 82 Members of Congress here.

——————–

One last word about Paul Ryan: he must truly be a special guy. Ordinarily, he would have been replaced as House Budget Committee Chairman this year because of GOP “term limits”. It looks like at least three other GOP Committee Chairs will lose their positions, but Speaker Boehner has already decided to give Chairman Ryan a waiver and allow him to stay on. Read more here.

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