Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Reeling in the deficit
Old 01-05-2007, 05:01 PM   #1
Recycles dryer sheets
 
Join Date: Oct 2005
Posts: 325
Reeling in the deficit

http://www.usatoday.com/news/washing...t_x.htm?csp=34


House votes to link spending changes, tax shifts
Updated 1/5/2007 2:10 PM ET E-mail | Save | Print | Subscribe to stories like this

House Republicans praised Democrats' efforts to require greater disclosure of lawmakers' earmarks.
WASHINGTON (AP) The House, in its second day of Democratic reign, changed budget rules that have allowed deficits to swell with lawmakers' pet projects and President Bush's tax cuts.
The rule changes voted Friday could bedevil efforts later to appease middle-class voters.

One rule requires that tax cuts have corresponding cuts in government spending or tax increases elsewhere to pay for them. Likewise, any increase in entitlement programs like Medicare would have to have corresponding tax increases, or equal cuts in other government programs, under the pay-as-you-go rule reinstated Friday. It was adopted 280-154.

If strictly enforced, the PAYGO rule would make it difficult for Democrats to pass increases in federal benefit programs such as Medicare or the Medicaid health care program for the poor or disabled. In the near term, it would mean Democrats' bill to cut student loan rates will be less generous than they'd like. The rule would also threaten efforts to extend Bush's tax cuts, most of which expire at the end of 2010.

"This is putting the American taxpayer on a collision course with higher taxes," said Paul Ryan of Wisconsin, top Republican on the Budget Committee.

"Today, we are cutting our national credit card," countered Heath Shuler, D-N.C., during floor debate Friday. To underscore the point, Shuler cut a credit card in half at a news conference populated by moderate-to-conservative "Blue Dog" Democrats who are most responsible for implementing the rule.

At the same time, House lawmakers passed a Democratic proposal to require lawmakers to disclose publicly the pet projects referred to as earmarks in legislative terms they want for their districts or states, such as Alaska's bridge to nowhere in the last Congress. Republicans had made a similar move last year, and GOP critics of pet projects applauded Democrats' efforts to require greater disclosure.

Still, only about a fourth of the Republicans voted for the earmark disclosures because it was linked to the PAYGO rule that will make it harder to extend the tax cuts set to expire in four years.

The emphasis on earmark reform came in the wake of the Randy "Duke" Cunningham scandal, in which the former California GOP congressman pleaded guilty to corruption charges for channeling earmarks to defense contractors in exchange for $2.4 million in bribes. Lesser scandals have hit other lawmakers.

The PAYGO and earmark proposals come a day after Democrats seized control of Congress for the first time in 12 years, with a jubilant Nancy Pelosi becoming the first woman ever to rise to speaker of the House.

NEW SPEAKER: Pelosi promises big results

Pelosi, D-Calif., will exert vast influence over the congressional agenda and stands second in the line of succession to the presidency. In her first step as speaker, she orchestrated bipartisan 430-1 passage of a measure banning lawmakers from accepting gifts and free trips from lobbyists and discounted trips on private planes. Rep. Dan Burton, R-Ind., cast the sole "nay" vote.

Democratic budget hawks, especially the moderate-to-conservative "Blue Dogs," say that restoring the PAYGO rule is crucial to curbing the budget deficit. Various forms of the rule were in place from 1990-2002, however, and Congress often found ways around it.

The version adopted Friday can easily be waived. Still, the incoming chairman of the Budget Committee, John Spratt Jr., D-S.C., touted it as better than the status quo.

"You've got to offset those tax cuts," Spratt said. "And if you want to enhance an entitlement, you've got to pay for it."

Democrats left in place for now a GOP rule limiting committee chairmen to three two-year terms.

Another rule change, adopted 430-0, would curb past abuses in which GOP leaders held votes open for hours and excluded Democratic lawmakers from House-Senate negotiations on the language of final bills sent to the White House for enactment.

Former GOP Rules Committee Chairman David Dreier of California said he supported the reforms but complained that the new rules could easily be sidestepped and that more extensive reforms once demanded by Democrats had been left out.
__________________

__________________
CybrMike is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Reeling in the deficit
Old 01-05-2007, 05:39 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2004
Posts: 11,615
Re: Reeling in the deficit

Quote:
Originally Posted by CybrMike

One rule requires that tax cuts have corresponding cuts in government spending or tax increases elsewhere to pay for them. Likewise, any increase in entitlement programs like Medicare would have to have corresponding tax increases, or equal cuts in other government programs, under the pay-as-you-go rule reinstated Friday. It was adopted 280-154.
The favorable tax treatment of capital gains are as good as gone--they'll probably be used to offset the cost of natonwide mandatory sensitivity training. Time to sell your winners before 2010.

One big problem in actually implementing this "pay as you go" thang is the difficulty in determining how much a tax cut will raise, or how much a new tax will bring in. The estimates are notoriously inaccurate, seldom anticipating the second- and third-order impacts. Surprise--people respond to changes in the tax code by changing their behavior. Anyone remember the yacht tax?

The move to make earmarks more noticeable and identify who is behind them seems like a good, well overdue reform.

Oh well, the circus continues . . .
__________________

__________________
"Freedom begins when you tell Mrs. Grundy to go fly a kite." - R. Heinlein
samclem is online now   Reply With Quote
Re: Reeling in the deficit
Old 01-05-2007, 07:51 PM   #3
Full time employment: Posting here.
Alex's Avatar
 
Join Date: May 2006
Posts: 696
Re: Reeling in the deficit

yawn.... a freshly squeezed pile of steaming hot CRAP, from politicians who have no intentions of keeping their promises. Reps, Dems, it matters little, they are both prolific spenders with no discipline.
Yeah, I'm disgusted
__________________
Oh, you hate your job? Why didn't you say so? There's a support group for that. It's called EVERYBODY, and they meet at the bar.--Drew Carey
Alex is offline   Reply With Quote
Re: Reeling in the deficit
Old 01-06-2007, 06:26 AM   #4
Recycles dryer sheets
 
Join Date: Mar 2006
Posts: 206
Re: Reeling in the deficit

There is a difference in political parties.

The Democrats take all of my money and give it to the poor people. However...

The Republicans take all of my money and give it to the rich people.

See - they aren't the same.
__________________
I'm trying to find myself.* Have you seen me anywhere today?
Mysto is offline   Reply With Quote
Re: Reeling in the deficit
Old 01-06-2007, 07:03 AM   #5
Full time employment: Posting here.
 
Join Date: Mar 2005
Posts: 557
Re: Reeling in the deficit

Such cynics.

Its your taxes. Its your spending. Its also your debt.

Do I really think the Dems are going to be able to hold the spending line? --dunno. Clinton seems to have been able to with a Republican Congress. Maybe the Dems can with a Republican President. The one thing I do know is that with both a Republican Congress and a Republican President there was an absolute inability to even reach for balance in the budgetary process and accountability in the political process.

I say Paygo is a good idea. Would like to see some discipline in Washington. If it means less from the Government for us, so be it, but at lease lets start to be honest!
__________________
uncledrz is offline   Reply With Quote
Re: Reeling in the deficit
Old 01-06-2007, 12:21 PM   #6
Full time employment: Posting here.
Alex's Avatar
 
Join Date: May 2006
Posts: 696
Re: Reeling in the deficit

Quote:
Originally Posted by tio z
Such cynics.

Its your taxes. Its your spending. Its also your debt.

Do I really think the Dems are going to be able to hold the spending line? --dunno. Clinton seems to have been able to with a Republican Congress. Maybe the Dems can with a Republican President. The one thing I do know is that with both a Republican Congress and a Republican President there was an absolute inability to even reach for balance in the budgetary process and accountability in the political process.

I say Paygo is a good idea. Would like to see some discipline in Washington. If it means less from the Government for us, so be it, but at lease lets start to be honest!
Thank you! The Cynics were an influential school of ancient philosophers. I am in esteemed company!

Seriously, there is no meaningful difference between the two parties. The democrats are corrupt. The republicans are corrupt. Dems are tax and spend liberals, reps are tax and spend conservatives. Both parties create bigger and bigger entitlements and spending. the two parties are now effectively one.

IMHO, anyone who believes that there are real differences between these two groups, is either a partisan wonk, or a political fool.
__________________
Oh, you hate your job? Why didn't you say so? There's a support group for that. It's called EVERYBODY, and they meet at the bar.--Drew Carey
Alex is offline   Reply With Quote
Re: Reeling in the deficit
Old 01-06-2007, 12:41 PM   #7
Thinks s/he gets paid by the post
 
Join Date: Apr 2006
Posts: 1,487
Re: Reeling in the deficit

Quote:
anyone who believes that there are real differences between these two groups, is either a partisan wonk, or a political fool
i am neither a wonk nor a fool, and while i do believe there are real differences, i would agree that any either party in control would have the result of increased taxes and increased spending.
__________________
d is offline   Reply With Quote
Re: Reeling in the deficit
Old 01-06-2007, 06:18 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Ed_The_Gypsy's Avatar
 
Join Date: Dec 2004
Location: the City of Subdued Excitement
Posts: 5,292
Re: Reeling in the deficit

Quote:
There is a difference in political parties.

The Democrats take all of my money and give it to the poor people. However...

The Republicans take all of my money and give it to the rich people.

See - they aren't the same.
Aye!
__________________
my bumpersticker:
"I am not in a hurry.
I am retired.
And I don't care how big your truck is."
Ed_The_Gypsy is offline   Reply With Quote
Re: Reeling in the deficit
Old 01-07-2007, 06:27 AM   #9
Thinks s/he gets paid by the post
Tadpole's Avatar
 
Join Date: Jul 2004
Posts: 1,169
Re: Reeling in the deficit

Quote:
Originally Posted by samclem
The favorable tax treatment of capital gains are as good as gone--they'll probably be used to offset the cost of natonwide mandatory sensitivity training. Time to sell your winners before 2010.
Apologies:
I'm ignorant of selling stock. I've never done it.
I'm off-topic but saw an opening to ask a question.

Question for anyone who can or will offer an answer:
I have some Chevron stock and am thinking of selling some of it to put elsewhere. I have been afraid to do so because I don't know if the 15% is all the impact I will see. Can doing this cause the AMT to kick in? If not, is the 15% on the sell the only affect I will see on my total taxes? The amount sold before taxes probably won't exceed $35K.
__________________
Tadpole is offline   Reply With Quote
Re: Reeling in the deficit
Old 01-07-2007, 09:56 AM   #10
Full time employment: Posting here.
 
Join Date: Dec 2004
Posts: 714
Re: Reeling in the deficit

[Tadpole ... best is to estimate your 2007 tax data, and use something like TurboTax ... or use your 2006 data and assume the sale occurred last year to see if alt min kicks in. Will vary with your personal circumstances.]

Regarding the cynicism ... consider:
Quote:
... under the pay-as-you-go rule reinstated Friday. It was adopted 280-154. If strictly enforced, ...
Quote:
... she orchestrated bipartisan 430-1 passage of a measure banning lawmakers from accepting gifts and free trips ...
Quote:
... restoring the PAYGO rule is crucial to curbing the budget deficit. Various forms of the rule were in place from 1990-2002, however, and Congress often found ways around it.
Quote:
Another rule change, adopted 430-0, would curb past abuses in which GOP leaders held votes open for hours ...
Look at the lopsided votes, and the weasle words. This is chest thumping. For most of us on these forums, we've heard about how Congress is going to fix this stuff for decades (and, for decades before any of us were born ...). Right.

Yawn indeed.
__________________

__________________
Craig is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Isn't anyone leary of our government defaulting with our 8.5+ Trillion deficit? modhatter FIRE and Money 59 11-23-2006 10:20 AM
The US dollar takes a pounding over deficit Craig FIRE and Money 1 05-13-2006 08:11 AM

 

 
All times are GMT -6. The time now is 05:44 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.