The emptiness of the Democratic debt ceiling “plans”

The emptiness of the Democratic debt ceiling “plans”.

On Wednesday evening, I noted the absurdity of Associated Press coverage characterizing the 5-page document with 3-1/2 whole pages of text issued by the “Gang of Six” as a “plan” — 12 times, plus in the item’s headline. Though I didn’t bring it up then, an obvious point to make about any of these items floating around Washington is that if the Congressional Budget Office can’t score it, it can’t be a plan. A month ago, CBO Director Doug Elmendorf told a congressional committee, in response to a question about President Obama’s April proposal, that “we can’t score speeches.”

And then there’s this:

Obama … claimed to have a $4 trillion deficit-reduction plan. The court eunuchs of the press corps were impressed, and went off to file pieces hailing the president as “the grown-up in the room.” There is, in fact, no plan. No plan at all. No plan whatsoever, either for a deficit reduction of $4 trillion or $4.73. As is the way in Washington, merely announcing that he had a plan absolved him of the need to have one. So the president’s staff got out the extra-wide teleprompter and wrote a really large number on it, and simply by reading out the really large number the president was deemed to have produced a serious blueprint for trillions of dollars in savings. For his next trick, he’ll walk out on to the stage of Carnegie Hall, announce that he’s going to play Haydn’s Cello Concerto No 2, and, even though there’s no cello in sight, and Obama immediately climbs back in his golf cart to head for the links, music critics will hail it as one of the most moving performances they’ve ever heard.

The only “plan” Barack Obama has put on paper is his February budget. Were there trillions and trillions of savings in that? Er, no. It increased spending and doubled the federal debt.

Boehner ends negotiations with Obama

Not good: House Speaker John Boehner (R-Ohio) has broken off negotiations with President Obama over the debt ceiling.

“A deal was never reached and was never really close,” Boehner wrote. “I have decided to end discussions with the White House and begin conversations with the leaders of the Senate in an effort to find a path forward.” Boehner blamed Obama’s demand for higher taxes and opposition to “fundamental changes” to entitlement programs such as Medicare, Medicaid and Social Security.

The important thing to note here is that so far only the Republicans have put forth any specific plan. It might not have been perfect but at least it was something. And the Democrats have rejected it, without offering any detailed counteroffer.

The Democrats in the Senate reject the House Republican debt ceiling plan

So what’s their plan? The Democrats in the Senate today rejected the House Republican debt ceiling plan.

Meanwhile, poll data says that the public is afraid that any deal will raise taxes too much and not cut enough.

Voters are worried more that Congress and President Obama will raise taxes too much rather than too little in any deal to end the debt ceiling debate. Just 26% fear they’ll raise taxes too little. Twelve percent (12%) aren’t sure. Similarly, 56% worry that Congress and the president will cut spending too little in the final debt ceiling deal, while only 25% are concerned that they will cut spending too much. Nineteen percent (19%) are undecided.

This quote is even more telling:

There’s a wide difference of opinion, however, between the Political Class and Mainstream voters. Fifty-nine percent (59%) of the Political Class is worried the deal will cut spending too much, while 63% of Mainstream voters fear it won’t cut spending enough. Those in the Mainstream worry more than Political Class voters by a near two-to-one margin – 70% to 37% – that the debt deal also will raise taxes too much.

Obama plans birthday bash costing almost $40k per ticket on default day

Tone deaf: Obama is planning a birthday bash fundraiser for himself costing more than $35k per ticket on August 3, the day the debt limit is reached and could default.

Oscar winner Jennifer Hudson is expected to perform at the birthday bash at the historic Aragon Ballroom in Chicago. The event will be one of the president’s biggest fundraisers of the year. Publicity literature featuring a red, white and blue Happy Birthday logo has already been produced. The event will be “multi-tiered,” the Chicago Sun-Times reported. The Hudson concert would cost $50; admission to the party $200; a premium seat $1,000; a souvenir photo with the president $10,000; and VIP seating and dinner with Obama $38,500.

The Republican-controlled House today passed legislation raising the debt ceiling and cutting federal spending by $6 trillion

Now it’s in the Democrats’ court: The Republican-controlled House today passed legislation raising the debt ceiling and cutting federal spending by $6 trillion.

Republicans have now passed their second bill this session that attempts to address the exploding deficits and the debt crisis, the first being Paul Ryan’s budget plan in April. Meanwhile, Democrats in the Senate haven’t bothered to pass any budget resolution in over 800 days, and the White House still refuses to offer any specific ideas.

Senate Republicans pull out of Biden debt limit negotiations

The Senate Republicans have pulled out of Biden’s debt limit negotiations.

This article strongly suggests to me that the Democrats, who hold a majority in this negotiating group, have refused to take seriously the Republicans’ demand to cut spending, instead focusing on tax increases as a solution. The problem is that you could raise our taxes to 100 percent and you wouldn’t solve the debt problem. The government has got to reduce its spending.

House torpedoes unconditional hike to $14.3 trillion debt ceiling

Good news indeed: The House tonight overwhelmingly voted down an unconditional hike to $14.3 trillion debt ceiling.

The vote was 318-97, with 82 Democrats joining every Republican in rejecting legislation that would have authorized $2.4 trillion in additional borrowing by the federal government. Seven Democrats voted present on the legislation.

Now comes the business of tying the increase in the debt ceiling to some real spending reduction.

Vote on “clean” debt ceiling increase set for tonight

The next budget battle begins: A vote on a “clean” debt ceiling increase has been set for tonight by the House Republican leadership.

More than 100 House Democrats recently signed a letter demanding that Speaker John Boehner bring forward a vote for an increase in federal debt levels without any conditions for cuts or future spending curbs. Imagine their surprise when Boehner agreed and will serve up a bill that would provide enough borrowing to cover all of president Obama’s spending requests for next year without any preconditions.

It is expected that the legislation will be defeated soundly in a very bipartisan vote. To quote the article again:

The political reality is that increasing the nation’s swollen $14.3 trillion debt is a political loser. Voters hate it and lawmakers don’t even get anything new to give away since the money is going to cover existing obligations.

If the bill is defeated as predicted, it will be very good news, as that defeat will bolster the efforts of those who want big cuts in spending to go with any debt ceiling increase.

GOP senators focus on entitlement cuts

More debt ceiling negotiations: GOP senators focused on entitlement cuts in a meeting with Obama on Thursday. I found this quote quite intriguing and a refreshing change from previous such meetings:

Obama was careful not to dominate the meeting, according to Republican senators who attended. The president opened the session with brief remarks and spent most of the session listening to lawmakers’ concerns and responding to their arguments.

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