“Pay as you go” = Delay as you go; Update: House embraces $14.3 trillion debt ceiling, 217-212
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The House is currently debating the federal debt ceiling increase to $14.3 trillion. (The Senate, with every single Democrat voting in favor, adopted the debt limit increase last week.) These measures are on top of two other debt limit increases over the last year (including one adopted in the dead of night over Christmas break) worth more than $1 trillion.
The red ink deluge never ends.
Democrats are trying to make the debt flood look more palatable by embracing “pay-go” principles — except, of course, that the exemptions and loopholes show that pay-as-you-go is once again a delay-as-you-go tactic that pushes fiscal discipline off into the distant future:
To ease its passage, Democrats attached tougher budget rules designed to curb a spiraling upward annual deficit — projected by Obama to hit a record $1.56 trillion for the budget year ending Sept. 30. The new rules would require future spending increases or tax cuts to be paid for with either cuts to other programs or equivalent tax increases.
If the rules are broken, the White House budget office would force automatic cuts to programs like health care benefits, farm subsidies and veterans’ pensions. Current rules have commonly been waived over the past few years at a cost of almost $1 trillion.
Skeptics say lawmakers also will find ways around the new rules fairly easily. Congress, for example, can declare some spending an “emergency” — a likely scenario for votes later this month to extend jobless benefits for the long-term unemployed.
And, indeed, there already are exceptions to the new rules, such as for extending former President George W. Bush’s middle-class tax cuts past their expiration a year from now. That would add $1.4 trillion to the federal debt over the next decade.
In agreement with Obama’s budget earlier this week, there is no exception for taxpayers in the two highest tax brackets whose marginal rates are due to rise by 3 percent or 4.6 percent to a pre-Bush maximum 39.6 percent next January.
But some new White House initiatives, such as doubling the child care tax credit for families earning less than $85,000, also would have to live within the rules, as would continuing subsidies for laid off workers to buy health insurance — unless lawmakers make another exception.
Which, of course, they will.
Playing more kick the fiscal discipline can down the road again…
***
Every House Democrat supported the increase in the debt limit. Every House Democrat. Remember. Repeat.
The House has approved a measure allowing the government to borrow $1.9 trillion to pay its bills.
The measure would raise the so-called debt limit to $14.3 trillion — more than $45,000 for every person living in the United States.
Democrats provided every “yes” vote in the 217-212 tally just as Republicans had to supply votes when they controlled Congress and the White House.
The massive increase in the debt is required because the government now has to borrow more than 40 cents of every dollar it spends because the recession has caused a slump in revenues at the same time spending has spiked.
CORRECTION: 37 House Democrats voted no. See roll call here.
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Categories: Politics, Subprime crisis, fiscal stimulus
Doug Ross @ Journal
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So, basically what you’re telling us is that there is no rule to have an exception to?
Seems like the only items which would trigger PAYGO are items benefitting the taxpayer or the most painful, visible cuts imaginable so they can blame PAYGO for them.
Michael Swartz
http://www.monoblogue.us
If the rules are broken… By the government? Kind of like, “If a fish don’t drink…
Once again this administration is breaking the faith with the veterans.
Good I can talk about the budget and the fallacy of the ‘inherited 1.3T deficit’.
When Obama says he inherited a 1.3 T deficit from Bush, that number INCLUDED the TARP funds as I understand it. 700 B dollars that was paid back and should be used to pay down the debt.
So when Obama says his budget is only up .3T from last year, he forgets the money spent for TARP that wasn’t spent but was paid back (by the more responsible recipients – not GM or Fannie or Freddie).
These numbers are meaningless. The problem is that these guys think there is an unlimited supply of money for them to waste. They don’t care if they have the money or not. They don’t understand the words. . . ‘we don’t have the money.’
This PAYGO crap gets recycled about every 9 months. What a crock.
How long until the government starts auctioning off Fort Knox on Barrett-Jackson?
On February 4th, 2010 at 1:19 pm, Hangfire said:
Shh….Fort Knox is empty (we gave the yellow bars to the ChiComs).
If they will just cut the salaries of every government employee in the country, we could balance the budget. It wouldn’t even need to be a big cut. I am serious. Why won’t they do that???
Pay as they go?? As long as the taxpayer has any money left, politicians feel that they haven’t spent enough money. Why not have these elected officials lose their pay checks when they over spend.
How about starting with other, less ‘essential’ government programs: Dept of Education, Dept of Energy, etc?
Let’s see, our business revinue is down about 40% over the last year, but if I give myself a $500K raise, and figure my commuting time, I could save money by buying a new Bell Ranger Helicopter for the commute. Yeah, that’s the ticket.
Obamanomics at work.
Just a queston to think about. With the “Pay Czar” stipulating ANY of the PRIVATE sector salary and/or bonuses, why not start at limiting the PUBLIC/GOVERMENTAL SALARIES?
Perhaps the “Pay Czar” should target his attention on the obviously bloated incomes of the Senators and Congressmen.
I should not ask this because then either the administration will issue an executive diktat waiving of exemption or Congress will pass a new millenium sized bill to accomplish the identical result.
Socialist Democrat Motto
No debt is too high. No tax is too big.
Remember that the Balanced Budget Amendment failed more than once in the Senate by ONE STINKING VOTE.
But now there’s Scott Brown and hopefully will be enough more fiscal conservatives in Congress to finally pass it in 2013 after Obama is replaced by a real president.
Is there any doubt those idiots in the house will pass the debt ceiling increase? I mean, really? There is no real debate. They will keep increasing the debt ceiling forever if they can get away with it on the world stage.
I do think the quote above fits beautifully with our current government.
Hogwash!!! They will just change the rules when they hit that ceiling. This balanced budget nonsense has been promised and broken 1000 times before. Our government has taken on a life of it’s own and will not stop growing unless forced to. And there is no way any of these thumb sucking politicians we have now will do that. They need to buy votes. Might as well grab all you can boys before she sinks.
Or for that matter ACORN subsidies, the endowment for the arts, etc.
I believe it was 217 to 212.
Like Hillary, the House has put 14.3 trillion cracks in the glass ceiling. As if there really ever was a ceiling.
Add to that the news that Social Security will be in the red this year.
How ’bout the EPA? and Maybe the Dept of giving money to countries that hate us? How ’bout we take all those employees that are suddenly making 100k+ back to a normal wage, cut out subsidies to the post office and make them compete, oh and put a leash on Nancy and her family’s travel costs.
Oh yea, and the next time the Olympic committee has a meeting, how about we tell Congress they don’t need to be there.
If they will just cut the salaries of every government employee in the country, we could balance the budget. It wouldn’t even need to be a big cut. I am serious. Why won’t they do that???
————————————
During the FDR years, government salaries were cut — and if I remember correctly it was 15%. There is no fundamental reason to keep government salaries rising in a period of real economic distress other than to increase the size and dominance of the government. I would also point out that during the Carter years, when inflation was running rampant, Carter gave a 7% pay increase to government employees although the cost of living at that time was nearly twice that.
Let’s face it, until we clean out the DC swamp, including all the Democrats and all the RINOs, we can’t expect to see fiscal discipline.
The stock market, Moody, and china ARE NOT liking this! Just keep it up this bho and d’s in dc, you are gonna get an eye opener in Nov. I think American citizens d’s, r’s, and i’s are fed up to the beyond point.
L
I also see that the IG at Justice says he cant investigate any wrongdoing at Justice in regards to the New Black Panther scandal:
Kinda like the river of blood that comes spilling out of the elevators in the movie ‘The Shining’, but not as heartwarming.
Leave us not forget Mr Duncan and his Department of Progressive Education (DOPE), and Barry’s new Department of Healthcare (D’OH)
Which will start adding to the deficit.
This isn’t pay as you go, this pray as you go.
There are many government agencies that have no constitutional foundation, have done virtually nothing to advance their mission, and are really little but lobbying organizations paid for by the taxpayers. The EPA has done its job and is now counterproductive. The DoEnergy has failed in its mission. The DoEducation is clearly a lobbying organization for the NEA. And those are major costly departments. In addition, there are hundreds of agencies, commissions, and the like that really serve no purpose but to line the pockets of politicians. We need to get back to constitutional premises and really limited federal governance or our liberty will be little more than a quaint word in a dictionary.
By the same President who just recently lectured Americans on fiscal responsibility and not “spend cash in Las Vegas” when they are broke.
Hey, Obummer, where can I send you a copy of Dave Ramsey’s book The Total Money Makeover?
We should get these idiots a few coupons to Dave Ramsey’s Financial Peace University.
I see you and I are on the same page.
How about these novel ideas:
1. Deport 20 million illegal aliens give the jobs to out-of-work legal Americans (more taxes coming in less payouts in unemployment/food stamps/other benefits on both ends).
2. Quit giving out citizenship and thus medicaid and other benefits to illegal aliens simply because they can manage to make it across the border illegally.
3. Take away piglosi’s planes.
4. Keep dear leader at home rather than jet-setting all over the planet on useless junkets.
5. We have 237 millionaires in Congress. Cut their salaries to $1 a year (yea I know a drop in the bucket but it sure would go a long way to showing the people they really are their to serve us not big business or other special interest groups).
Feel free to add to the list but no more cuts to our troops!!!
On February 4th, 2010 at 2:15 pm, flmom said:
Add to that the news that Social Security will be in the red this year.
I seem to remember that SS is based on just paying what needs to be paid and the rest of the money was borrowed by Uncle Sam and SS given a IOU. I am not sure if this is right but someone may be able to shed more light on this.
This is like one of those nightmarish dreams where something terrifying is chasing you, and you feel like your feet are in quicksand. This is certainly a nightmare, but it sure isn’t a dream.
Yup. what you folks said.
How about we change the pay structure for government employees.
They get a base salary that is fair and reasonable. Definitely less than what they make now. Given their unbreakable job security, I think that’s a fair concession.
Then…. depending on the government’s ability to operate in the black… or not… they get a year end bonus…..the amount dependent upon how much the surplus was….or they get no bonus if they have to borrow…AND… a pay cut for the following year.
Incentive to spend wisely.
AS these clowns decide to put the US deeper in the red, the DOW loses another 200 points. Back down nearly to 10,000.
Dear Leader and Congress: Stop helping us. PLEASE!
Dead man walking……….
This too.
It’s long past time for constitutionally minded folks (conservatives and otherwise) to vehemently start pointing out that the Preamble to our Constitution states one of it’s goals is to ’secure the Blessings of Liberty to ourselves and our Posterity’ means that our Federal government, it’s legislators, regulators, executive and judicial branch need to start protecting the taking of liberty of our future generations by today’s politicians, judges and bureaucrats, because of lack of backbone to enforce this all important clause in our Constitution.
It should be illegal to buying today’s votes with tomorrow’s kids earnings.
Each generation should pay it’s own way thru our maze of welfare programs and handouts.
This is insanity! I hope these “public officials” understand that when the house FINALLY collapses….there will be nowhere for them to hide. Hear that Nancy? Harry? Dodd? Rangel?
As the title to the movie goes….“There will be blood.”
Keep piling on the debt, Congress. Soon, the dollar will go the way of the Lire. A lot of countries are going to be upset (esp. China) when the dollar becomes the new “continental dollar”, too. Well, congress can always do what N. Korea did; re-evaluate the currency. Of course, people will go hungry. Well, as long as the elites still have their dachas….
It’s that government+bank thing. Monetizing the debt.
The Fed creates the fiat money from blank paper.
The politicians get an endless supply of money to buy votes for their re-elections.
The banks get to collect interest on it.
We get to pay for it through the hidden tax of the ultimately-unavoidable inflation that will result.
What’s not to like?
Eliminate the retirement and medical plans for congress. Make them pay for their own 401K and their own health insurance like the rest of us. Eliminate the ability of congress to vote their own pay raises. If they want to take family members on business trips, they pay out of their own pockets. And they pay for their own food and boos. Election to congress should not come with a jet-setting lifestyle at taxpayers’ expense.
*Been following the Dave Ramsey plan for 10 years now, by living on less than we make, and have never been more at peace with the significant other; We as a country will have the opposite of peace in the neighborhood if this keeps up, as these rat bastards will have run us out of can and road!
*This is why the Tea Party movement must galvanize against all the Democrats(The Death to America Party), as well as all the RINO’s, and get them flushed out of the system once and for all in the next two election cycles!
Note to P-BO: I am not interested in bipartisanship that leads to the death of my country!
*If they can recall Toyotas, can we recall congress and this administration?
Smoke and mirrors
Look like dog sh.
Smell like dog sh.
Taste like dog sh.
Must be dog sh.
Stick to your guns mates.
bjc,
I know of Dave Ramsey and have loosely followed his plan mixed with elements of other similar plans for several years.
We are completely debt-free and about 1/2 way toward our long-term goal for our emergency cash reserves in the bank. Life is much better than it was with debt!
Live on less than you earn. It is a good rule for people and a better rule for governments! I fear we are going to have to use extraordinary means to get our government to obey this simple fact of life. Maybe we should send Barack a copy of Dave’s book to start…
And I agree. I am not interested in holding Barack’s and Rahm’s hands singing “We are the World” as we skip down the Yellow Brick Road to bankruptcy!
Yeah, what a shame.
A wise woman once said to me, “don’t give up your days”. I’m making an exception in my wish for November to hurry up and get here!
I lived in Russia when they defaulted on some of their international loans. It was a nightmare.
The Ruble dropped by 100% overnight. And it dropped another 100% within the next few weeks. A few months later it was at 25% of its August 98 level.
Banks closed. ATMs were non-functional. I was lucky that I had closed my hard currency account just before this happened or I would have lost it all when the bank failed.
Imported goods became 400% more expensive within months. But, at least I was getting paid in a hard currency. My Russian friends were hit very hard and we did what we could do to help our employees. What a mess. Don’t think it can’t happen here…
Obama is just the guy who can pull it off.
Could any legislative body in the history of mankind be considered more reckless and criminally irresponsible? I don’t think so.
As a Marine might say: “We are in the f***ing hurt locker now.”
It’s time to start drafting a Tea Party platform for November. (The Dems and Rinos can go sit in a corner and teabag each other.)
1. 40% cut in non-defense spending on items like computers, gas cards, paper clips etc.
2. 20% cut in government salaries throug furloughs (much of the private sector has already done this.)
3. 25% cut in the government workforce over the next two years through a freeze on hiring, retirements and cutting inefficient jobs.
None of these would apply to defense or ICE (but they would apply to homeland security, which has proven it is just another big, bloated, inefficent bureacracy.)
Americans in private industry are doing more with less and increasing productivity. It is time that the government did the same.
WE82: I firmly believe there is no hope with P-BO or the Democrats as it relates to fiscal responsibility; That day is done for me; It will take people on the outside of the beltway to turn this mess around, and I am committed to being one of them; I must do it for my children and future grandchildren!
Southpaw,
It is a good start but your targets seem kind of low. I think we should get rid of 50% of the government workforce in the first two years. Of course, if we paid the rest of them to do nothing that would still save money. I mean every time they do something it costs us a few hundred billion…
bjc: So, you are NOT going to send your Dave Ramsey book to 1600 Pennsylvania Avenue.
Agreed that the Dems can’t do it but I doubt the GOP will do it.
We need new blood from the rest of the country…
Right now, according to Cavuto, the prez and dems are behind closed doors working on the health care bill. Including the excluding the unions from paying the tax on “cadillac’ policies, and 120 dems have signed on to the public option.
Can anyone say suicide??
Secondary undercurrent in this.
Anyone wonder why the vote was so close? I’ll bet anything they did a whip count, and let the sham moderates most vulnerable this November pretend to be fiscally responsible.
If, and I mean if, Hell Care comes to a vote on the House floor, it will be because Pelotox and the leadership of the caucus have counted the votes, and know they will win, and again, the vote will be close, because some especially vulnerable sham moderates will be allowed to vote against it if their votes aren’t needed.
They were just random numbers I pulled up to point out how serious this effort needs to be. If there is a Tea Party Platform in November, candidates can either pledge to accept it or reject it, straight up or down yes or no. The Insurrection has started. We are can no longer afford to let the politicians-as-usual tell us what is best for us.
Let Barack and his buddies push health care all the way to November. It is the best issue conservatives have.
WE82: It would be better to send Dave Ramsey himself to D.C.; These progressives, both Democrat and RINO alike, are stuck on stupid when it comes to money, and down the road we will have a Tea Party Revolt or Tax Revolt, that will be comprised of regular folks; Stay tuned!
*The Fair Tax is our one way out!
*Later, gotta go make some coin.
More TREASON from our government.
And we who spent 20 years or more of our lives defending this country should be surprised by this? The current “regime” in Washington has shown us time and time again that they regard us with the same disdain that Kipling wrote about.
how many of the 37 dems that voted nay were blue dog’s? Or were they once again not blue dog’s but the usual dark blue demorats.
ECS: Firmly comprehend what you are saying, I am just perturbed that the Keep the faith has been convoluted to this extent (breaking).
As you are aware, in the service, we depended and relied on our brothers/sisters in arms. To be hacked in the back by the administration, the politicians and yes the vets turned politicos is beyond frustration.
Thank you for Kipling (always a favorite) compare with his “If”, but even the Tommy respected the “Fuzzy Wuzzy” post action.
Wow! The congressional crapweasels really know how to lay down the law. Is there any doubt that with these two alternatives that said crapweasels would automatically default to raising taxes? Once again demonstrating that there truly is nothing more fun than spending OPM.
Incidentally, my rep, Heath Shuler, blue dog democrat whip, voted for this increase in the debt ceiling. Shuler claims to have conservative western NC values. No, he doesn’t. The voters will send that message in November.
Sample of jobs created (Fox News)
“North Carolina public schools received $4.4 million to hire math and literacy coaches, not for students, but teachers. That’s 64 people paid $70,000 each to teach teachers how to teach reading and math.”
My favorite – paying people in Buffalo to report how much pot they smoke, and how much malt liquor they drink. Cost per job – $200,000.
The list is endless of course…the fire station in Nevada (Harry Reid), but the county can’t afford to staff it…
Errah if they wanted to piss money away quickly why didn’t they just fill the shuttle bay with benjamins and leave the bay doors open on launch. Hell they could have put it on pay per view and made some money back on the deal.
You just can’t help yourself can you?
I don’t know why you keep picking that scab, is it because it feels good, or because it tastes good?
Heh! Democraps.
A mind is a terrible thing to waste.
How is a vote of 217 to 212 or whatever a vote to pass? Don’t they need a hard 218 votes (majority of 435) to have a valid “win” vote for something? I didn’t realize that the House could pass things with a simple majority of those present and voting. Can someone explain how 217 votes carried this?
Agreed. I wish someone would finally break that scratched record which repeats over and over and over and over……..
One year down – 3 to 7 years of Obama to go. But oh well, it could have been worse.
Much worse.
But I guess a $14.3 trillion debt ceiling is but a small price to pay to make sure that SHAMNESTY! was kept out of the whitehouse.
Or so I’ve been informed.
Umm. Here’s a clue for you. It was CONGRESS that upped the debt ceiling, not obummer. And what makes you think mcamnesty would reduce governemnt spending. Didn’t he support the massive stimulus package? mcamensty would be no different on spending, just maybe in differnet areas.
Yup. Mcamnesty would be acting exactly like Obama. Sure. That’s the truth, all right.
No difference.
Absolutely.
As a matter of fact, I’m SURE that Mcamnesty would be doing twice as worse than Obama.
Yup. I’m positive that’s the case.
Rolls eyes. I noticed you didn’t address mcamnesty’s spending and voting record. Seriously, please sing a new tune. mcamensty is exactly what is wrong with the gop and why people are leaving in droves. BTW, the quickest way to double the already out of control deficit spending is to grant amnesty to 20M-30M (at least) illegal invaders, of which, 98% are far below the poverty line with 3 illegal kids and 2 anchor babies. Followed up by a deluge of “family reunification” immigrants which will get on the gov’t dole as well. Which mcamnesty would not only support, but champion.
oh yeah, Mcamnesty’s spending and voting record is just as bad if not worse than Obama. I’m sure if he was president, we’d have a 28.6 trillion debt ceiling by now.