Skip to comments.NYT Reports That Senators Are Working On A Fiscal Cliff Deal — And Paul Krugman Is Already Furious
Posted on 10/02/2012 6:47:57 AM PDT by blam
NYT Reports That Senators Are Working On A Fiscal Cliff Deal And Paul Krugman Is Already Furious
October 2, 2012, 4:47 AM
This sounds very hazy, but Jonathan Weisman of the New York Times says work has begun among some Senate leaders will hammer out a plan that would cut $4 trillion out of the deficit over 10 years, and avert the fiscal cliff/sequestration nightmare due to hit on January 1 of next year.
First, senators would come to an agreement on a deficit reduction target likely to be around $4 trillion over 10 years to be reached through revenue raised by an overhaul of the tax code, savings from changes to social programs like Medicare and Social Security, and cuts to federal programs. Once the framework is approved, lawmakers would vote on expedited instructions to relevant Congressional committees to draft the details over six months to a year.
If those efforts failed, another plan would take effect, probably a close derivative of the proposal by President Obamas fiscal commission led by Erskine B. Bowles, the Clinton White House chief of staff, and former Senator Alan K. Simpson of Wyoming, a Republican. Those recommendations included changes to Social Security, broad cuts in federal programs and actions that would lower tax rates over all but eliminate or pare enough deductions and credits to yield as much as $2 trillion in additional revenue.
There are so many hurdles for something like this, including the tax issue, not to mention trying to craft something palatable to the House.
But at least it's worth noting that some form of the 'Grand Bargain' is being kicked around somewhere in Washington.
Meanwhile, Paul Krugman is already flipping out.
(Excerpt) Read more at businessinsider.com ...
Jim DeMint will not allow this in a lame duck session.
The operation of a simple lever is post graduate science to the Krugfool.
Don’t know how he ever got into economics, because math is most certainly not his friend.
As for the Nobel-O-dork committee...it appears that all save for the science awards are now permanently beclowned.
And Plan B will involve a whole lot of tax increases.
This is precisely how they got the major defense cuts that are coming.
bet none suggest stoppoing spending
Raise our taxes and the Republican party is dead.
“to be reached through revenue raised by an overhaul of the tax code, savings from changes to social programs like Medicare and Social Security, and cuts to federal programs. Once the framework is approved, lawmakers would vote on expedited instructions to relevant Congressional committees to draft the details over six months to a year”.
I’m sorry, but the first item “revenue raised” is a non starter. Anyone who thinks giving more revenue to the ultimate revenuers who have spent us into oblivion with the revenue they already have access to is an absolute moron, or very wise to the ways of the electorate. How about we just see what can be done with the present level of revenue, or back it up about four years and start there.
Cutting $400 bil a year from the budget is like cutting soda from a household budget. Nice try, but it’s only a fraction of a fraction that needs to be cut.
As long as we have an EPA, we’re still spending too much.
A few things bother me here - one, the timing of this ‘plan’, the dearth of details regarding the senators involved, and the source.
He has already said so. At least twice. He said in July that he will do all he can to prevent a lame duck session. He said once the new Congress with a President Romney are in office, things will be ‘fixed’.
That is what *He* said, not me.
Krugman has been lying under the rock
As long as we have an Education Department, we're still spending too much.
Oh Hell, as long as we have [fill in your favorite bureaucracy], we're still spending too much.
$4 trillion over 10 years isn’t even back to pre-Obama levels
It is still far too much debt
Wouldn't it allow the can to be kicked down the road a little longer?
There was an amusing thread yesterday featuring the "10 worst debate mistakes" -- it went back as far as Gerald Ford and his statement that the USSR did not dominate Eastern Europe.
Well, two of the Top 10 came from Rick Perry. I'm not really picking on Rick, but they were pretty funny. His most amusing was when he tried to name the 3 US Departments that he would certainly eliminate. They were, "Education, Commerce, and ... uh, uh , uh ..." Eventually a bit of chuckling all around ensued. Someone yelled out "EPA?" and Perry laughed out loud and said "EPA! Right!" and then struggled some more but couldn't really complete his point.
At that point, a moderator said, "Just for clarity governor, is EPA the third department?" And Perry laughed again and said, "No, that isn't the one. I'll think of it later."
And right there we see the problem. We need to cut more than just 3 departments, and, yes, EPA is certainly one of them.
As soon as I hear “over 10 years” I realize it’s BS and start laughing.
I don’t consider sequestration a nightmare.
Romney should be ready to say that in a debate. “Why 10 years? Why not now? The voters give you 4 years — they might give me 8 — you’ve had 4, you might get 4 more. What will you do in 4 years? Let’s not talk about 10 years because we both know that that’s just pie-in-the-sky, and the voters deserve the truth.”
Amen. Cut social program like Social Security and Medicare? Really? Medicare may qualify but Social Security is a full-on Ponzi scheme based on fewer eaters and an ever-growing pool of payers. So, they plan on taking the money - or more money - and not paying it back? Good luck, they’re already doing that so not sure where they’d find more to take.
The so-called social program that needs desperate cutting is welfare. Otherwise known as the legal way to buy votes. Until and unless that sacred cow is led to slaughter there will be NO meaningful deficit reduction.
Overhauling the tax code? For God’s sake what do they plan? Adding another 40 million lines of indecipherable mumbo-jumbo? I’m thinking that’s Dem-speak code for vast increase in taxes on the vast majority of taxpayers.
We have run out of other people’s money. Full stop.
When I was younger I thought Bertrand Russell was the smartest idiot I was familiar with.
Then, for a couple years, I thought it was Krugman.
Now, I’m back to Lord Russell: Krugman’s just a run of the mill idiot.
Bingo...tax increases starting immediately, and the “cuts” occur in year 10..
Plus, over 10 years? What a scam. Make the maroons think something is actually being done, then shift gears two years out.
That would be nice, but I won’t bet the house on it.
One of the things I despise about politicians is that they all go along with the fiction that they can bind a subsequent Congress to any agreement they make today.
The Republican party's been dead for a while. The selection and anointment of Romney, from even before the primaries, is proof of that.
Romney embodies nearly the absence of everything in the Republican Party's stated planks. He's not honest, he implemented socialized healthcare, he signed in a weapons ban, he brought about homosexual marriage [domestic partnerships], he appoints extreme liberal and activist judges, he is pro-abortion [his conversion is, as revealed by actions such as judge appointments, a lie].
But is he 'Fast and Furious'?....................
EPA, Dept of Education, Dept of Labor, Dept of Commerce, etc........
Which one is the really pussy?
Which one is the real pussy?
Separated at birth?
I call BS on this!
How many freakin', goldarn times are we going to let these floppy eared losers kick the can down the road?
The savings are in the future, but the spending is now.
Hmmmm....the good Senators conveniently forget that all ways and means bills must originate in the House. Silly them.
Could you elaborate on this for those of us that are career defense company employees (and chose that career in order to serve their country in that fashion because the military wasn’t open to them?)
Aw, “originate” is just one of them words. Who needs words? Pfft.
It’s simple. Not every penny spent on defense actually defends us, nor is wasting money like every other Big Government department serving anything worth serving.
Hmmm, not everything is a “waste”....
some of us worked in the factories designing and making things like F-14, F-15, F-18 radars, B-52 infrared sensors, stuff like that.....
and still work in the factory designing and making smaller versions of these.
Been doing this for 33 years, need 10 more to retire
Obama piled $6 Trillion upon us in less than 3 1/2 years......and these guys are talking about a $4 trillion reduction in 10 years!!!
This doesn’t make a lick of fiscal/financial sense to me.
The public always gets rolled by each DC crisis du jure. If a “deal” is in the making, it is just a way to put a pretty face on BOHICA.