It’s summer in an election year, and that’s the time for the deficit peacocks to come out of hibernation and strut their feathers, letting everyone know that they care – very much! – about deficits. This is a bipartisan phenomenon. On one side of the aisle, Republicans want to freeze discretionary spending, borrowing an idea from the other side of the aisle, from Claire McCaskill (D-MO). She at least tried to sound reasonably sane, but the impact of her preferred policy would be pretty negative:
Claire McCaskill, a Democrat from Missouri and an outspoken backer of Obama early in the presidential campaign, said she was thrilled to hear the GOP had glommed on to her proposal.
“I think that’s a terrific idea,” she said. “I think if we tried to do massive cutting now, we could be dangerously close to a much more serious recession. But capping growth is exactly what we should be doing.” McCaskill’s measure would cap the growth of domestic spending at one percent.
Actually, Sen. McCaskill, now is the wrong time to freeze spending, too. Macroeconomic policy has begun to trend negative, and we need something to fill the gap in demand. But a similar measure to Sessions-McCaskill (Jeff Sessions is the lead sponsor on the GOP side) got 59 votes earlier in this Congress.
Joining McCaskill in the bevy of Democratic deficit peacocks are 1/4 of the House Democratic caucus:
Fifty-eight Democrats, led by Rep. Adam Schiff (D-Calif.), wrote House Speaker Nancy Pelosi (D-Calif.) and Majority Leader Steny Hoyer (D-Md.) to pressure them to restrain federal spending.
“Failure to put in place and properly enforce budget enforcement mechanisms that cut and restrain the growth in federal spending will only make the tough, necessary decisions harder to achieve in the future,” Schiff wrote in a letter to the leaders.
Pointing to the effects of the financial crisis in Europe spurred by high levels of debt, the group said they would demand that spending be offset by cuts elsewhere under pay-as-you-go (PAYGO) rules adopted earlier this year. This would have the effect, if the group of 58 held together, of blocking extensions of unemployment insurance and other spending programs that aren’t paid for. Democrats control 253 House seats, but would only have 195 votes for such spending without the support of these other Democrats.
The reason I call these people, in both parties, deficit peacocks rather than deficit hawks is that they don’t give a rat’s ass about the deficit. They care about “looking tough,” but when it comes down to it, they manage to preserve all the most deficit-exploding elements of the federal budget, from the military-industrial complex to tax cuts for the rich. Matt Yglesias offers the definitive study of conservatives on this issue, and they clearly and openly by their words and the available evidence don’t care at all, but this is a bipartisan problem. Consider Blanche Lincoln’s efforts to bring about a massive tax cut on the ultra-wealthy by pretending that it won’t have the expected fiscal impact.
Proponents of limiting federal estate taxes are seeking a vote during Senate debate this month on small business tax legislation.
Sens. Blanche Lincoln (D., Ark.) and Jon Kyl (R., Ariz.) on Wednesday introduced a proposal to permanently set the estate tax rate at 35%. Estate wealth under $5 million would ultimately be exempted from estate taxes, but this exemption amount phases in over a 10-year period.
The phase-in is a change from legislation Kyl and Lincoln have introduced in the past and is meant to make the short-term cost of the bill appear smaller.
Emphasis on “appear.” After the ten-year window, the tax cut would have the same effect in perpetuity. And that would be hundreds of billions if not trillions of dollars distributed directly upward and, in this era of paying for spending but not tax cuts, taken directly away from the most vulnerable members of society.
As Ryan McNeely notes, Lincoln is doing this to protect a whopping 83 Arkansans who qualified for the estate tax last year. But surely, she will wail and scream (for the next few months until she gets knocked out of the Senate, anyway) about the deficit and how we need shared sacrifice to put our economy on a stable fiscal path.
And because the counter-argument to these deeply contradictory, deeply self-regarding political fools pretty much doesn’t exist, it’s become the dominant view among the media, even as actual people in the country care about having a stable job much more than “the deficit.”




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I can’t think of two worse people to write the new estate tax than Lincoln and Kyl.
In the UK, a country hardly lacking in generational wealth, a 40% tax applies to estates over $500,000.
Obama, pre-compromising as always, wants the estate tax to be 45% with a $3.5 million exception.
Just by not taking any action, we will get a 55% rate with a $1 million dollar exception. It would just take a handful of principled progressives to block new legislation.
Also the capital gains tax needs to be raised again along with the estate tax, since they work together. UK’s capital gains rate is 28%.
OT but it is another example of “Obama, pre-compromising as always”. David Sirota at the Great Orange has this bit of a breaking news. Liz Fowler herself author of Obama’s corporate health care giveaway, has been appointed by the Administration to regulate the law.
Naturally Sirota has angered many Kossacks for not getting on his knees and worshiping the ground that Obama may walk upon.
It is obvious that our government cares neither about jobs or the deficit. A government that produces nothing and gets its money from taxing people and businesses who work, you can see how it is getting out of hand. Unfortunately, the liberals running Congress since 2006 don’t understand that our country is dead broke. Printing and borrowing they way they are will only send us into hyperinflation down the road when the Fed starts to raise the interest rates. GDP growth MUST come from the private sector since that is where governments gets its money to run (which is why it is added back into any calculation of GDP). This administration is doing nothing to give the business community any confidence, and even the Aspen Society is taking notice!
Only crazy people would talk about deficit reduction in this economy. Since these people are crazy, they are highly likely to not just talk about deficit reduction, but to actually do something.
If these prancers had the least concern for deficits they would have fought the bank bailouts, which are still on-going, and would be doing everything they could to stop the unconstrained military expanse. Deficit peacocks is a nice phrase though perhaps a bit too polite. Sanctimonious and duplicitous shills is probably too kind as well.
Funny how the cost of the clusterfucks never make it to the deficit reduction table with Obama.
And now that the cost is going up, and not just in dollars:
http://apnews.myway.com//article/20100714/D9GUSP8O0.html …
enquiring voters who, after 9 years of blood and bullshit, and watching the misery bills still coming in, would like to re-examine “wasteful government spending”…and BEFORE November.
Kindergartners on toast, is there a way to filter the comments to skip all the, “I’m telling! MOM!!!” crapola?
Sometimes snark just won’t get it.
For their part in this, those 58 blue roaches should have their political asses racked, to the bone.
And blue roach #59, the one in the oval office, should be the first one that it happens to.
David Sirota reported a significant story without any spin. He gets flamed for it, but again it is a gang war over there.
Most of them, in both parties, are only interested in insuring that taxes on the rich are not increased even a little. They do not give a damn about the deficit. If they did, the first thing they would cut is the bloated, inefficient, corrupt, and pork lade defense budget. We could cut by 2/3 and still spend more than twice as much as anyone else. It is also the largest single item in the budget. They would also rescind all of the Republican tax cuts since Reagan, treat all income the same (including capital gains and inheritances), and lift the income cap on payroll taxes. Cutting defense and raising taxes on the rich together would move us from deficits to surpluses almost over night.
The U.S. deficit is about as dangerous as Iraq’s WMDs, and the selling propaganda is about the same quality & script. Be afraid, be very afraid.
These peacocks think they are as tough as Superman but although they may be more powerful than a locomotive they are not faster than a speeding bullet.
Gawd, that place is such a tub of shit!
Every time I go there I can’t believe what I’m looking at.
Sirota’s post is quite good. The proof is the ridiculous critical comments. It is getting very similar to the way Chimpie had a cult of personality.
Thread music:
A popular set of lyrics for the tune was written by singer Norma Winstone, posted here.
Boy, I read that and had a rather unpleasant visual. Ewwwwwwwwwwwwww.
Glad I don’t go there anymore. Sad thing is though, I always thought they were on our side, and I really still feel that way. I certainly think they’re closer to our side than the teabaggers and fundies ever will be.
Man if we on the left could only patch up our differences, come together and pool our strengths, we may just be a political force to be reckoned with.
And the moon may be made of green cheese…..
yeah, I know, fantasyland.
Dammit the assholes on the right are so effective at keeping the little folks divided. So damned effective at it.
Assholes.
Yup. They’re freepers! Sirota’s article is good, but scrolling down was a mistake.
OFG, it’s an accurate desription. They’re going “the post is ad hom ad hom ad hom.” Babytalk. Then someone else replies, “Nice ad hom ad hom ad hom post you just made!”
I kid you not.
Also, I know you know this isn’t ‘the right’ that causes this. It’s the dems just as much. It’s just that these people are idiots, they make it easy.
Chickenheads.
A 1% limit on non-defense spending may be alright (I don’t know the numbers), but why focus on that instead of the obviously big things which are out of whack. Let the Bush tax cuts on rich individuals phase out. That’s big. Cut defense spending — that’s big. If you’re serious about the big deficit and debt you need to find big cuts to match.
Of course, you have to be careful not to do anything to further undermine families and the economy, but there would be some good benefits to cutting the debt a bit. Finding the right level of spending cuts and the right places to cut is the real trick.