Obama threatens veto of House GOP’s “Cut, Cap, and Balance” bill

By Michelle Malkin  •  July 18, 2011 12:29 PM

News is breaking out all over Capitol Hill just now: The president is threatening to veto House GOP conservatives’ proposal to cut spending now, cap future spending, and balance the budget.

So, to be clear, to use that over-worn Obama phrase, the White House is against Cut, Cap and Balance.

Spread the word.

Call their bluff.

***

WashTimes’ Emily Miller: “Obama just issued a veto threat for a bill that would give him a $2.4 trillion debt ceiling increase. So, who’s risking default now?”

Via Jamie Dupree: Read the White House veto threat. The fear-mongering intro:

The Administration strongly opposes H.R. 2560, the “Cut, Cap and Balance Act of 2011.” Neither setting arbitrary spending levels nor amending the Constitution is necessary to restore fiscal responsibility. Increasing the Federal debt limit, which is needed to avoid a Federal government default on its obligations and a severe blow to the economy, should not be conditioned on taking these actions. Instead of pursuing an empty political statement and unrealistic policy goals, it is necessary to move beyond politics as usual and find bipartisan common ground.

The bill would undercut the Federal Government’s ability to meet its core commitments to seniors, middle-class families and the most vulnerable, while reducing our ability to invest in our future. H. R. 2560 would set unrealistic spending caps that could result in significant cuts to education, research and development, and other programs critical to growing our economy and winning the future. It could also lead to severe cuts in Medicare and Social Security, which are growing to accommodate the retirement of the baby boomers, and put at risk the retirement security for tens of millions of Americans.

***

Related: The latest on the headache-inducing McConnell sellout from RedState:

Only in Washington are spending increases called spending cuts. They will actually grow discretionary spending at 2/3 rate of inflation (spending increase) but call it $1 trillion in cuts below the baseline of full inflation. About $200 billion come from cuts to health care providers, something we stop every year with the doc fix — not sure how they’ll keep this promise. And another $165 billion come from increases in government fees (some call tax increases), not spending cuts. So at the end of the day, we are left with a $2 billion FY2012 cut, and $55 billion in promised actual spending cuts through yet unspecified policy changes. A whopping $57 billion in cuts over a decade, or less than $6 billion a year.

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Comments


  1. #1
    On July 18th, 2011 at 12:34 pm, et said:

    Please say it’s so.

  2. #2
    On July 18th, 2011 at 12:34 pm, Hiraghm said:

    Do it… make him veto.

  3. #3
    On July 18th, 2011 at 12:35 pm, Cogs said:

    Stand fast, GOP!

  4. #4
    On July 18th, 2011 at 12:35 pm, Hiraghm said:

    Do it… make him veto.

  5. #5
    On July 18th, 2011 at 12:35 pm, Niemand2011 said:

    We can only hope that the beseiged teaparty representitives will block this sell-out when it comes to conference.
    Why is the U.S.Sente such a worthless bunch of spineless weasel s?

  6. #6
    On July 18th, 2011 at 12:37 pm, Hiraghm said:

    Sorry for double post. Posting via Samaung Moment phone… so want an Evo-3D!!

  7. #7
    On July 18th, 2011 at 12:38 pm, Cogs said:

    On July 18th, 2011 at 12:35 pm, Niemand2011 said:
    “…Why is the U.S.Sente such a worthless bunch of spineless weasels?”

    Been there too long.

  8. #8
    On July 18th, 2011 at 12:40 pm, ignatzk said:

    The bill would undercut the Federal Government’s ability to meet its core commitments to seniors, middle-class families and the most vulnerable, while reducing our ability to invest in our future.

    Does it really mean to imply that raising the borrowing limit somehow fails to address obligations? All of this is talking about the ability to grow entitlements and spend more in the future.

    How much of a man does the government need to own? Our liberty erodes everyday Obama is in office.

  9. #9
    On July 18th, 2011 at 12:43 pm, hawkeye54 said:

    “Obama just issued a veto threat for a bill that would give him a $2.4 trillion debt ceiling increase.

    Go ahead, do it. You won, after all.

  10. #10
    On July 18th, 2011 at 12:44 pm, DANEgerus said:

    If McConnell(R) wants Obama to ‘own’ this… what better way then a VETO?

  11. #11
    On July 18th, 2011 at 12:45 pm, hawkeye54 said:

    “…Why is the U.S.Sente such a worthless bunch of spineless weasels?”

    Been there too long.

    Right, because having a spine and making a decison may mean coming out on the wrong side of unpopular legislation and damaging chances of re-election. It is much easier to survive in DC by being a spineless, vacilating weasel.

  12. #12
    On July 18th, 2011 at 12:46 pm, rambler said:

    I’ll hand that slithering commie the pen! Veto away. Veto often. Pander to the left, commie base. It is trench warfare. The GOP had better stand for the country or it can go down with the dems.

  13. #13
    On July 18th, 2011 at 12:48 pm, rambler said:

    Having a spine means having brains too. The clueless are incapable of standing for anything.

  14. #14
    On July 18th, 2011 at 12:48 pm, NavyGal said:

    OT; Daily Caller is highlighting another undercover effort by J. O’Keefe. This time it’s Medicare fraud. I’m glad he’s bringing to light the ease by which ‘unqualified’ people are given these benefits; but equally unhappy at the obvious lack of ethics of government employees.

  15. #15
    On July 18th, 2011 at 12:50 pm, ITookTheRedPill said:

    Republican Congress 1997-2000: approx. $100 Billion new debt per year. Democrat Congress 2007-2010: approx. $1,390 Billion new debt per year.

    Democrats increased debt at a rate of almost 14 times that of Republicans.

    ——————–

    Yet Clinton got the credit for good budgets passed by Republicans during his Presidency, and Bush got the blame for bad budgets passed by Democrats during his Presidency.

    Don’t look only at which party controlled the Presidency. Look at which party controlled the majority of the three pieces that must come together on budgets:
    1) House
    2) Senate
    3) President

  16. #16
    On July 18th, 2011 at 12:55 pm, ITookTheRedPill said:

    The president is threatening to veto House GOP conservatives’ proposal to cut spending now, cap future spending, and balance the budget.

    … Call their bluff.

    The House should pass it. But Obama will not have the opportunity to veto it, because the Democrat Senate won’t pass anything that they know Obama will veto. So it will stall in the Senate, rather than reaching Obama’s desk.

    But the Republican House should definitely pass it and put it in the Dem Senators’ court.

    Q: How many Democratic Senators voted to raise the debt limit in 2006?
    A: ZERO!!!

    Democrats won in 2006 and 2008 by pretending to be the more fiscally responsible party. That mask came off in 2009, which is why Democrats were routed in 2010.

  17. #17
    On July 18th, 2011 at 12:57 pm, letget said:

    Come on r’s make bho veto the bho’s bluff bill! Please do not cave! CALL his snakes bluff!
    L

  18. #18
    On July 18th, 2011 at 12:58 pm, Pasadena Phil said:

    As I posted earlier on another thread:

    On July 18th, 2011 at 11:16 am, Pasadena Phil said:

    I hope everyone watches this morning’s Geithner interview where he praises McConnell, Kyl and Boehner for taking default off of the table in important but unspecified developments in the negotiations (GOP surrender). The only thing left to do is to play through the pointless kabuki to entertain the masses.

    On a related note, former NH senator Judd Gregg was interviewed afterward on CNBC and in dismay, opining that no one in DC cares a whit about credit ratings, the bond market or what is going on in EU and that this is 100% related to presidential politics, he predicted that some version of the McConnell plan to punt the problem into 2013 when the problem will be much, much larger.

    Having read last week’s 7-page S&P warning, the one Rubio refers to, I expect S&P will react with another warning of imminent downgrade.

  19. #19
    On July 18th, 2011 at 1:02 pm, rambler said:

    We have Jan Schakowsky, commie from IL denying that there ever was a lock box for SS and that is why the SS checks are endangered. So is she lying or stupid? Not all seniors are so demented as to not remember the lock box. I spoke to 2 men who were surprised that the lock box contained IOUs. Their reaction was stunning. Nothing but lies are coming from DC. The GOP may cave but the TEA Party won’t. The DC ponzi scheme is going to pop and then it won’t matter how many veto pens bho-zo has.

  20. #20
    On July 18th, 2011 at 1:02 pm, ITookTheRedPill said:

    As to calling Obama’s bluff, if the R’s increase the debt limit at all, it should be for an amount equal to 2 months deficit spending. Don’t bump it past the election, deal with it NOW. Buy a month or two more time if needed, but get the budget balanced NOW.

    A regular American who was facing default couldn’t get away with saying,
    “Give me 5 years to stop my deficit spending!”

  21. #21
    On July 18th, 2011 at 1:05 pm, right_on said:

    Obama is simply doing what he was trained to do…dither, delay, demogogue, dismiss, and…default. All in grand partisan fashion.

    (Let’s not forget deflect, demonize, and defame.)

    Several words to describe Obama come to mind:

    Amateurish

    Poser

    Incompetence

    One would think that after two and a half years in the White House, with all that “intellectual firepower” he supposedly has at his disposal, one of those “academic brains” would advise “Dear Leader” of the failings of his ideologic thought process.

    He is not, nor was he ever, a President for all the people. He is a mixture of Maoist, statist, Socialist, and Communist…we all know how well their histories have served them, but apparently, this inept Bozo thinks he can fair better. That should tell you how unintelligent he really is!

  22. #22
    On July 18th, 2011 at 1:06 pm, Pasadena Phil said:

    Market commentary is already emerging regarding the McConnell punt option or any option that kicks the can down the road. Most are expecting a very short-lived relief rally followed by a correction to reflect the continuing economic damage expected to result from a non-solution, especially to banking stocks.

  23. #23
    On July 18th, 2011 at 1:10 pm, Lindsay said:

    Please keep piling stuff in his lap until the weight of the problem lies firmly with the Democrats.

    Pass it, House. Make the Senate vote on it. Keep doing this until the left gets it.

  24. #24
    On July 18th, 2011 at 1:14 pm, Pasadena Phil said:

    On July 18th, 2011 at 1:10 pm, Lindsay said:

    Please keep piling stuff in his lap until the weight of the problem lies firmly with the Democrats.

    Pass it, House. Make the Senate vote on it. Keep doing this until the left gets it.

    Keep doing this until the left and GOP establishment gets it. We are fighting a one-party system staging the usual kabuki.

  25. #25
    On July 18th, 2011 at 1:15 pm, J.J. Sefton said:

    Dump McConnell. He is a useless, clueless load.

    CALL KING PUTT’S BLUFF!

  26. #26
    On July 18th, 2011 at 1:17 pm, Flyoverman said:

    On July 18th, 2011 at 1:10 pm, Lindsay said:

    Pass it, House. Make the Senate vote on it. Keep doing this until the left gets it.

    This is why the President’s veto threat is a joke. Harry Reid would do the same thing with this bill that he did with the House passed Ryan budget. It will never get to the floor to even be debated, much less voted on.

    I would have the House pass this bill and when it fails in the Senate, I would tell the President to submit his plan. Until he does the GOP should break off all talks and say nothing other than Barry needs to show us his plan since he dislikes ours.

    All he is doing now is waiting for any GOP plan and saying no, while exercising no leadership and not getting pinned down to a position. Time to play offense folks.

  27. #27
    On July 18th, 2011 at 1:17 pm, jrgdds said:

    Mr. pResident:

    Remenber the Democrat controlled Senate voted your buget down 97-0, and the CBO said it can’t score a speech (or your pandering or a threat to seniors)

    Since The House can’t come up with something you like, we’re all dieing to see your very own detailed plan.

    I’m sure it’s forthcoming…

  28. #28
    On July 18th, 2011 at 1:17 pm, Teddy Kennedy said:

    Errah, why would he sign up for this when he can kick the can down the road till 2016??!! Repugs need to grow a pair and put on a cup! It’s gonna be a bumpy ride!

  29. #29
    On July 18th, 2011 at 1:20 pm, prendad said:

    DO IT,
    DO IT NOW.
    LET HIM VETO IT.
    I AM TIRED OF DEALING WITH THIS EGOIST.
    WE NEED A LEADER.

  30. #30
    On July 18th, 2011 at 1:21 pm, Pasadena Phil said:

    On July 18th, 2011 at 1:17 pm, Flyoverman said:

    Time to play offense folks.

    Yup. The House should reject the McConnell punt and force a showdown. Let’s see where the GOP leadership lines up then. It’s what happens after the kabuki script runs out that matters. An intransigent House conservative revolt is where we need to go with this. We need to change the narrative and take the upper hand within the GOP. The GOP leadership needs to feel that their own survival is at risk, something they don’t yet feel.

  31. #31
    On July 18th, 2011 at 1:31 pm, stillontheroad said:

    Do It – Veto it Sock Puppet!
    Show em how it is done you mealy mouthed shyster. Talk out both sides of your mouth at once and stick that chin up and out you spineless jackel. Everyone is sick of it.

  32. #32
    On July 18th, 2011 at 1:35 pm, AlohaGuy said:

    People voting with their money have pushed gold over $1600 today.

  33. #33
    On July 18th, 2011 at 1:44 pm, Lindsay said:

    In my reading of the bill, it looks as if Social Security, Medicare and veterans checks are protected or “exempt.” Am I reading thaat correctly?

    If so, then the onus should fall directly on Obama and the Democrat Congress just who will withhold the checks. Call the bluff and ante up Obama:

    http://rules.house.gov/Media/file/PDF_112_1/legislativetext/HR2560%20ct.pdf

  34. #34
    On July 18th, 2011 at 1:45 pm, rambler said:

    So what happens if bho’s bluff is called? Does he hold his breath till he turns blue? Takes his toys and leaves? Explodes in the corner? Beats everyone about the head with a copy of Rules for Radicals? Totally devoid of social graces and any level of class, he’ become a total embarrassment.

  35. #35
    On July 18th, 2011 at 1:46 pm, Truesoldier said:

    On July 18th, 2011 at 12:44 pm, DANEgerus said:
    If McConnell(R) wants Obama to ‘own’ this… what better way then a VETO?

    But would Obama veto it or would he have Robopen veot it…that way he can blame it all on technolgy. After all it wouldn’t be the first time he blamed technolgy for something.

  36. #36
    On July 18th, 2011 at 1:49 pm, cheapseat said:

    If the repubs bill is lost in the senate, or vetoed by obie, offer him the put up or shut up plan.
    1) Go back to the 2000 fy taxes which raises everyones taxes, not just the rich. See if dems want that?
    2) replace Obamacare with the Ryan Plan completely.
    3) Raise the age to be eligible for SS to 68 immediately, and ban all federal pension plans EXCEPT SS which will insure it’s success because gubmint workers will not rob their plan.
    Put that into a bill, kick it to the Senate and let the Pres and the senate explain why they aren’t for raising taxes, and fixing the entitlements.

  37. #37
    On July 18th, 2011 at 1:52 pm, Marshall_Will said:

    ITookTheRedPill said:

    A regular American who was facing default couldn’t get away with saying,
    “Give me 5 years to stop my deficit spending!”

    Really puts it into context. Wouldn’t it be great if we could?

  38. #38
    On July 18th, 2011 at 1:54 pm, Lockstein13 said:

    Heard the call for “compromise!” recently?
    Funny thing that.
    Between 2008-2010, *I* seem to remember, “We won. Get to the backseat of the car and shut up!”

    When they’re whining the loudest is the time to turn the screws on them.

    Or it’s lights out for Obama and the GOP in 2012.

  39. #39
    On July 18th, 2011 at 2:01 pm, Lindsay said:

    http://blogs.reuters.com/james-pethokoukis/2011/07/18/would-the-gops-cut-cap-and-balance-plan-really-cost-700000-jobs/

    Another talking point for Republicans: this bill WOULD NOT cost 700K jobs (maybe the federal bloat jobs in tens of thousands). More lies the Republicans need to clear up.

  40. #40
    On July 18th, 2011 at 2:06 pm, Gorebot said:

    Oblunder’s press agency (aka the Lame Stream Media) will do all in its power to frame the outcome as “Obama did the best he could, but the (heartless, self-centered, millionaire-protecting) GOP continued to be an obstacle to progress”.

    And the Idiot American Electorate will fall for it again, unless the GOP shows some actual Tea Party spine.

  41. #41
    On July 18th, 2011 at 2:06 pm, Flyoverman said:

    On July 18th, 2011 at 1:54 pm, Lockstein13 said:

    That “car in the ditch” is now at the bottom of a swamp.

  42. #42
    On July 18th, 2011 at 2:09 pm, Flyoverman said:

    Bottom line is Obama is unwlling to cut spending one penny in the middle of a recession.

  43. #43
    On July 18th, 2011 at 2:10 pm, Marshall_Will said:

    Instead of pursuing an empty political statement and unrealistic policy goals, it is necessary to move beyond politics as usual and find bipartisan common ground.

    Common ground? How about We’re Broke! can we agree on that much? View that as “an empty political statement” if you so choose, but that’s the cold, hard reality here.

    The very reasons we hammered on De-Funding NPR and pulling the plug on PP etc. months and months ago. They can play deaf all they want, but those cries aren’t going to get any softer?

  44. #44
    On July 18th, 2011 at 2:15 pm, txvet2 said:

    On July 18th, 2011 at 12:58 pm, Pasadena Phil said:

    FBN has been saying all day that there is no such agreement. The House is still intent on passing their cut and cap bill, with a demand for a balanced budget amendment. Obviously it won’t go anyplace because the Senate won’t take it up, but in any event the House is still not on board with any compromise.

  45. #45
    On July 18th, 2011 at 2:16 pm, Hangfire said:

    Mr. President,

    Please slit your wrists A F T E R you sign the veto. The National Achives are picky about the condition of legislation they accept for display.

  46. #46
    On July 18th, 2011 at 2:19 pm, happyscrapper said:

    On July 18th, 2011 at 1:17 pm, Flyoverman said:
    I would have the House pass this bill and when it fails in the Senate, I would tell the President to submit his plan. Until he does the GOP should break off all talks and say nothing other than Barry needs to show us his plan since he dislikes ours.

    All he is doing now is waiting for any GOP plan and saying no, while exercising no leadership and not getting pinned down to a position. Time to play offense folks.

    This is the best plan I have seen. I hope they do it!! I’m praying for them.

    On July 18th, 2011 at 1:45 pm, rambler said:
    So what happens if bho’s bluff is called? Does he hold his breath till he turns blue?

    I think he already tried that, but it only affected his lips.

  47. #47
    On July 18th, 2011 at 2:20 pm, txvet2 said:

    On July 18th, 2011 at 2:09 pm, Flyoverman said:

    Bottom line is Obama is unwlling to cut spending one penny in the middle of a recession.

    Not only does not want to cut spending, he’s pushing for huge tax increases. As I said yesterday, not even the Keynesians agree with him.

  48. #48
    On July 18th, 2011 at 2:21 pm, letget said:

    O/T, Michelle is on Fox now talking about the union thugs.

    Michelle, would you please let us all know when you will be on Fox so we don’t miss you? I know you are normally on F&F Thursdays around 7CT, but we don’t know of other times. Maybe a note at the top of the blog on the times?Thanks.
    L

  49. #49
    On July 18th, 2011 at 2:22 pm, rambler said:

    I don’t know where the gov gets the gall to spew stuff about meeting any obligations when it borrows 40 cent for every dollar spent. Politicians think that they can continue to meet obligations they created by blasting through our money and money from other countries as well? The foolishness that continually spills from their mouths is remarkable. Liberals have been saying that WE have been depleting the worlds resources because WE are selfish and WE need to return that wealth. Well how does that work when OUR GOV feels entitled to borrow from those other countries? Shouldn’t OUR GOV live with in its means so as to not strap an already “plundered” world with less while OUR GOV creates new programs to buy voters? Seems to me that good ideas don’t need money to buy supporters. There is no longer enough spin to keep the gov ponzi scheme going. This needs to stop or there won’t be gov checks going out to anyone for anything, including the elected official’s checks. Now THAT would be shared sacrifice!

  50. #50
    On July 18th, 2011 at 2:23 pm, txvet2 said:

    On July 18th, 2011 at 1:17 pm, Flyoverman said:
    I would have the House pass this bill and when it fails in the Senate, I would tell the President to submit his plan. Until he does the GOP should break off all talks and say nothing other than Barry needs to show us his plan since he dislikes ours.

    That’s what I’ve been saying. Of course, the MSM would beat them over the head, blaming Republican House intransigence for the impasse – not that they haven’t been doing that already.

  51. #51
    On July 18th, 2011 at 2:26 pm, txvet2 said:

    On July 18th, 2011 at 2:22 pm, rambler said:

    They’ve managed to keep the government going for the past few weeks by draining the government employee retirement funds, but pretty soon they’re going to run out of OPM.

  52. #52
    On July 18th, 2011 at 2:29 pm, Marshall_Will said:

    rambler said:

    Fantastic post. Bar none. Of course, after Progs have augered the US Economy into the ground ( which they certainly seem hell bent on doing ) they can turn to the people and finger wag about shared sacrifice and austerity.

    Not buying it. And NO, you can’t have the keys to the car.

  53. #53
    On July 18th, 2011 at 2:31 pm, DesertLover said:

    It could also lead to severe cuts in Medicare and Social Security, which are growing to accommodate the retirement of the baby boomers, and put at risk the retirement security for tens of millions of Americans.

    HELP PLEASE Michelle … Expose this falsehood for all the uninformed …

    I got laid off and began to look into my Social Security for when I turn 65 later this year, although I am not wanting to retire I was simply looking ahead in case things came to that …

    Imagine my surprise to find that my age for FULL SS Retirement has been raised over the years to 66 years 3 months … not 65 as I thought

    This little “change” means that in my case I can not take my full SS benefits until early 2013 … almost 2 more full years …

    If I take my Social Security before then I lose $750 month in benefits for the rest of my life …

    This means that anyone else turning 65 this year is in the same proverbial boat I find myself in and would be taking a big benefit hit for taking it early …

    In other words … the entire line about “10,000 baby boomers retiring every day” is total B.S. and is simply being used to further the outright lies of this administration …

    Please help to spread the word and put an end to this bald-faced lie

    Thanks …

  54. #54
    On July 18th, 2011 at 2:38 pm, stillontheroad said:

    Memo to Sock Puppet:
    Submit your plan, I repeat – submit your plan. oh wait, you submitted one in Jan and it got shot down by the Full Senate because it was a joke. So, where is your plan in writing?

  55. #55
    On July 18th, 2011 at 2:42 pm, doriangrey said:

    Operation “Fast and Furious” The California connection.

    Anyone want to dare to suggest, given that all the decisions made in the Phoenix “Fast and Furious” were made in San Fransisco (can you say, Ninth Circuit Court?) and Los Angeles that the FBI/ATF/DOJ in California didn’t do all the exact same things that they did in Phoenix? Have you been to California lately?

  56. #56
    On July 18th, 2011 at 2:49 pm, Red Kat said:

    Agee! Call their bluff. Or what? Obamageddon will happen with their fear-mongering threats. Yah right.

  57. #57
    On July 18th, 2011 at 2:49 pm, DesertLover said:

    Follow-Up to my #53 …

    If you have not checked into your records regarding your Social Security benefits please go to the following link …

    SS Benefits Estimator

    You can calculate your SS benefits and retirement dates based on your current records and estimate future benefit amounts based on expected annual contribution rates for several sample retirement ages …

  58. #58
    On July 18th, 2011 at 2:49 pm, Hangfire said:

    On July 18th, 2011 at 2:42 pm, doriangrey said:
    Have you been to California lately?

    Does changing planes count?

  59. #59
    On July 18th, 2011 at 2:50 pm, Green eyed Lady said:

    This was the kind of week where any self-respecting 2008 Barry supporter should have been in his garage scraping off that old Hope and Change.

    http://www.americanthinker.com/2011/07/president_demands_massive_job-killing_tax_increases_and_dares_republicans_to_call_his_bluff.html

    Get Ready for a 70% Marginal Tax Rate
    By MICHAEL J. BOSKIN

    Some argue the U.S. economy can bear higher pre-Reagan tax rates. But those rates applied to a much smaller fraction of taxpayers than what we’re headed for without spending cuts.
    President Obama has been using the debt-ceiling debate and bipartisan calls for deficit reduction to demand higher taxes. With unemployment stuck at 9.2% and a vigorous economic “recovery” appearing more and more elusive, his timing couldn’t be worse.

    Key quote:

    Many Democrats demand no changes to Social Security and Medicare spending. But these programs are projected to run ever-growing deficits totaling tens of trillions of dollars in coming decades, primarily from rising real benefits per beneficiary. To cover these projected deficits would require continually higher income and payroll taxes for Social Security and Medicare on all taxpayers that would drive the combined marginal tax rate on labor income to more than 70% by 2035 and 80% by 2050. And that’s before accounting for the Laffer effect, likely future interest costs, state deficits and the rising ratio of voters receiving government payments to those paying income taxes.
    It would be a huge mistake to imagine that the cumulative, cascading burden of many tax rates on the same income will leave the middle class untouched. Take a teacher in California earning $60,000. A current federal rate of 25%, a 9.5% California rate, and 15.3% payroll tax yield a combined income tax rate of 45%. The income tax increases to cover the CBO’s projected federal deficit in 2016 raises that to 52%. Covering future Social Security and Medicare deficits brings the combined marginal tax rate on that middle-income taxpayer to an astounding 71%. That teacher working a summer job would keep just 29% of her wages. At the margin, virtually everyone would be working primarily for the government, reduced to a minority partner in their own labor.

    The writer goes on to note it gets worse from there, as economic output is reduced (by percentages greater than in the current Great Recession) by such a voracious tax code.

    http://online.wsj.com/article/SB10001424052702304911104576443893352153776.html?mod=WSJ_Opinion_LEADTop

  60. #60
    On July 18th, 2011 at 2:52 pm, Hangfire said:

    I on’t want my SS when I retire. I want it N O W. Just what I have paid into it; no more, no less.

    What’s that? I’ve paid in more than I will ever take out in benefits? How did THAT happen?

  61. #61
    On July 18th, 2011 at 2:56 pm, WarEagle82 said:

    It is long past time for McConnell to be retired.

    We need to clean house in the Senate in November.

    I am so tired of this nonsense.

  62. #62
    On July 18th, 2011 at 2:56 pm, American1791 said:

    The Founders never intended the Federal Government to become the bloated Dictatorship it has over the past 235 years. Cut / Gut the Federal Government, cut taxes and get out of the way of businesses. Our taxes are being waisted of propping up skill-less career self promoting politicians at the expense of our quality of life. Americans need jobs not welfare. Cut Government and we cut the abuse of power and the never ending encroachment into our daily lives by the power hungry mob in DC.

  63. #63
    On July 18th, 2011 at 2:58 pm, Truesoldier said:

    On July 18th, 2011 at 2:52 pm, Hangfire said:
    I on’t want my SS when I retire. I want it N O W. Just what I have paid into it; no more, no less.

    Social Security and politicians handling it reminds me of a Madeline Kahn quote from the movie clue:

    Wadsworth: But, he was your second husband. Your first husband also disappeared.
    Mrs. White: But that was his job. He was an illusionist.
    Wadsworth: But he never reappeared!
    Mrs. White: [admittedly] He wasn’t a very good illusionist.

  64. #64
    On July 18th, 2011 at 3:00 pm, T-Bone said:

    I think we all see the strategy here. Obama does nothing that is not based on politics and Alynsky think.

    He knows he has the MSM backing him. He knows he has the bully pulpit of an incumbant. He knows he has the Hollywood elite backing him. He knows he has Acorn revamped and ready to go. He knows he has been able to utilize taxpayer dollars to fund his “campaign” under the auspices of “government” and “Czars”.

    He has all of that in place. Thats what he has been doing for 3 years is consolidating his power. He knows the debt ceiling issues can be used as a political tool but he realizes it really runs against his interest so he has to use up some political capital to turn the tables.

    Timing is his only problem. He has to do something now but he needs to do something for the 2012 election. He is trying to frame the timing to his advantage while demagoguing his opponents with his media power and Hollywood foot soldiers.

    I am not for sure that Boehner and McConnell recognize that. They always seem to be one step behind. I think they give Obama too much credit for trying to do the right thing. They think that is his motivation and thats where they go wrong. His motivation is politics. He could care less about the outcomes of his decisions. He only cares about 2 terms in office to get a bunch of liberal policies in place that will consolidate liberals power. Thats it. All things are focused on that outcome. He probably feels that any problems with that appraoch can be fixed but it is still all about consolidating power. If people trust him to do the right thing, they do so at their peril and will fail to adopt the correct counter strategy.

  65. #65
    On July 18th, 2011 at 3:00 pm, Truesoldier said:

    On July 18th, 2011 at 2:56 pm, American1791 said:
    The Founders never intended the Federal Government to become the bloated Dictatorship it has over the past 235 years.

    Spot on. When Congress was first created the Representatives were unpaid and met for a veryshot period of time, just long enough to get business done. All of them had ohter professions, but took the time off as it felt it was an honor to serve our nation and their fellow conutrymen by representing them in Congress.

  66. #66
    On July 18th, 2011 at 3:03 pm, DesertLover said:

    Truesoldier …

    “Citizen Representation” …

  67. #67
    On July 18th, 2011 at 3:03 pm, hawkeye54 said:

    Have you been to California lately?
    Does changing planes count?

    From my perspective, if you didn’t set foot out of the airport terminal, no.

  68. #68
    On July 18th, 2011 at 3:07 pm, Hiraghm said:

    On July 18th, 2011 at 1:54 pm, Lockstein13 said:

    Heard the call for “compromise!” recently?
    Funny thing that.
    Between 2008-2010, *I* seem to remember, “We won. Get to the backseat of the car and shut up!”

    You remind me of a scene from “National Treasure”. They’re driving off to Philadephia in Ben’s father’s stolen car, while in possession of the DoI, and Rily’s trying to sleep… in the back seat. Maybe we should emulate him…
    “When we gonna get there?”
    “I’m hungry.”
    “This car smells weird.”

    Ben Gates: A toast? Yeah. To high treason. That’s what these men were committing when they signed the Declaration. Had we lost the war, they would have been hanged, beheaded, drawn and quartered, and-Oh! Oh, my personal favorite-and had their entrails cut out and *burned*!
    [brief pause]
    Ben Gates: So… Here’s to the men who did what was considered wrong, in order to do what they knew was right…
    [nodding]
    Ben Gates: what they knew was right.

    Good thing the Founding Fathers didn’t have to face re-election!

    Quidquid accidet semper mementote:

    Ben Gates: Of all the ideas that became the United States, there’s a line here that’s at the heart of all the others. “But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and provide new Guards for their future security.”

  69. #69
    On July 18th, 2011 at 3:08 pm, kwrxxx said:

    Failing to raise the debt ceiling is not the end of the world. Just like the Soviet Union did 20 yrs ago, the USA will have a major economic adjustment, but in the long run we will be fine. We need to stop the Fed Gov from providing Social Security, Medicare & Medicaid. Let the States set up their own system.
    Change will do you good!

  70. #70
    On July 18th, 2011 at 3:13 pm, Hiraghm said:

    On July 18th, 2011 at 2:21 pm, letget said:

    O/T, Michelle is on Fox now talking about the union thugs.

    Michelle, would you please let us all know when you will be on Fox so we don’t miss you? I know you are normally on F&F Thursdays around 7CT, but we don’t know of other times. Maybe a note at the top of the blog on the times?Thanks.

    She was just on Fox a bit ago, looking lovely and brilliant as ever…

    (not that I have a crush on her or anything…)

  71. #71
    On July 18th, 2011 at 3:18 pm, MacEamonn said:

    On July 18th, 2011 at 1:17 pm, Flyoverman said:

    On July 18th, 2011 at 1:10 pm, Lindsay said:

    Pass it, House. Make the Senate vote on it. Keep doing this until the left gets it.

    This is why the President’s veto threat is a joke. Harry Reid would do the same thing with this bill that he did with the House passed Ryan budget. It will never get to the floor to even be debated, much less voted on.

    I would have the House pass this bill and when it fails in the Senate, I would tell the President to submit his plan. Until he does the GOP should break off all talks and say nothing other than Barry needs to show us his plan since he dislikes ours.

    All he is doing now is waiting for any GOP plan and saying no, while exercising no leadership and not getting pinned down to a position. Time to play offense folks.

    As Flyoverman said…There won’t be a veto because Hotel Harry Reid will never let the bill on to the floor of the Senate in the first place.

    PS: Thanks Nevada for sending that P0$ back to be majority leader. :-7

    PSS: Hey all you union goons in “Lost Wages”! How’s reelecting Hotel Harry working out for you anyway?

  72. #72
    On July 18th, 2011 at 3:19 pm, Marshall_Will said:

    In typical tone deaf fashion, Obama is vastly misjudging the sentiment and anger of the American people here?

    He realizes he came to power under extraordinary circumstances. Yet at the same time somehow thinks he can play this off on Repub’s by making more throw-away sound bites and innuendo?

    I don’t THINK so pal. The last 30+ months on the ObamaBataan Death March have made hardened vets of us all! There simply aren’t any unAFFECTED unINFORMED voters left for you to exploit.

    Best of luck w/ that spin you’re no doubt weaving as we speak.

  73. #73
    On July 18th, 2011 at 3:24 pm, MacEamonn said:

    PSSSSS: “Lost Wages” unemployment rate as of May 2011: 12.4% Ol’ Hotel Harry and his buddy Barry Soetoro is really taking care of those folks aren’t they?

  74. #74
    On July 18th, 2011 at 3:41 pm, happyscrapper said:

    If I take my Social Security before then I lose $750 month in benefits for the rest of my life …

    DesertLover….you must make one heck of a lot more than I did!! I retired abut 1 1/2 years early and it only reduced my monthly benefit by a few dollars.

  75. #75
    On July 18th, 2011 at 3:54 pm, ITookTheRedPill said:

    On July 18th, 2011 at 2:09 pm, Flyoverman said:

    Bottom line is Obama is unwlling to cut spending one penny in the middle of a recession.

    That’s because he’s a Keynesian.

  76. #76
    On July 18th, 2011 at 4:11 pm, drbulb said:

    If you get rid of all of the “other spending” (see link) like the department of education, EPA, DOE, etc, etc, etc, it looks like we have revenue to meet our commitments. Why is it that the democratic socialists always bump social security, medicare, etc to the TOP of the histogram?

    http://www.americanthinker.com/blog/2011/07/graph_for_the_day_for_july_13_2011.html

  77. #77
    On July 18th, 2011 at 4:28 pm, Marshall_Will said:

    drbulb,

    Sweet chart. No doubt you noticed virtually all of the Exess Expenditures fall into the “Other Spending” category.

    Perhaps a more impactful way to have displayed the data is to show all that Other Spending well covered ( and leave silly frivilous stuff like Defense and MediCare ) above exposed and NAKED above the Receipts line?

  78. #78
    On July 18th, 2011 at 4:43 pm, bjc said:

    *Press on House GOP with that bill and the prioritized spending bill with no rise in the debt ceiling; These will never get past Harry Reid, as he will take the fall for P-BO; Just do it!
    *As I always say, “get results, don’t give excuses”!
    *It is imperative that the House lead on this issue; The rat bastard RINO traitors in the Senate will sell our beloved country down the river in a NY minute!

  79. #79
    On July 18th, 2011 at 4:50 pm, Pasadena Phil said:

    The last thing I want to hear from McConnell, Boehner and the rest is that they didn’t push the bills because it never would have passed in the Senate and Obama would have vetoed them anyway. Prove it. Get their votes on the official record so we know exactly who to target next year.

  80. #80
    On July 18th, 2011 at 4:51 pm, Flyoverman said:

    On July 18th, 2011 at 3:54 pm, ITookTheRedPill said:

    That’s because he’s a Keynesian.

    To some extent, yo are correct. However I think it is primarily because he is a Marxist. He also feels that the larger the government is, the more powerful it is. We start cutting discretionary spending, guess what goes?

    Obamacare goes first; politically connected spending goes second. Next you start cutting departments; no more DOE SWAT teams…..

    Obama is not going to surrender one square inch of his Regime. This is not politics; it’s war and the GOP had best think of it in those terms.

  81. #81
    On July 18th, 2011 at 4:57 pm, Flyoverman said:

    On July 18th, 2011 at 4:50 pm, Pasadena Phil said:

    The last thing I want to hear from McConnell, Boehner and the rest is that they didn’t push the bills because it never would have passed in the Senate and Obama would have vetoed them anyway. Prove it. Get their votes on the official record so we know exactly who to target next year.

    Agreed. We need to vote on things in the House, but nothing will get voted on in the Senate. Harry Reid will never let any of these bills get to the Senate floor. Jsut like Ryan’s House passed budget plan.

    Send a plan and let it get stalled. Then announce there will be no further discussions until the President releases his plan for what he feels the cuts should be and what specific tax increases he would like.

    Discuss nothing until a COMPLETE, DETAIL plan comes from Barry. He could not submit a plan even if his family would be put to death. That is the bluff we should call.

  82. #82
    On July 18th, 2011 at 5:04 pm, DesertLover said:

    happyscrapper …

    that $750 amounts to exactly 1/3 of my full amount SS benefit if I can hold out another 19 months before having to start claiming it …

    fortunately I have made a good living and managed things fairly well or I would have no chance of holding on until then … however I am now using money that was intended to supplement my SS benefits when the time came … I actually had no intention of retiring until I was 70 …

    that aside my main focus of the posting was to point out the lies being used to scare people regarding the truth about those “boomers” turning 65 impacting SS funding for everyone else this year …

    I hope some of those here that had never checked into their SS benefits have gone to the link I gave in my follow-up post and checked their benefits status …

  83. #83
    On July 18th, 2011 at 5:33 pm, Flyoverman said:

    On July 18th, 2011 at 5:04 pm, DesertLover said:

    I am at the point where I plan to retire and make do with what I can muster privately. I will not take Medicare, and thus will forfeit Social Security.

    I have no intention of being placed at the mercy of the merciless. If it results in my premature death, I’d rather die free.

  84. #84
    On July 18th, 2011 at 5:35 pm, beachmom said:

    Is Obama threatening to hold his breath until he passes out if everyone doesn’t do what he wants too?

  85. #85
    On July 18th, 2011 at 5:38 pm, T-Bone said:

    I checked mine Desert Lover and the following message popped up:

    Mr T-Bone,

    Based on your age and other relevant data, we regret to inform you that the Social Security Administration will be fiscally bankrupt by the time you retire. There will be no funds available for you but we wish to thank you for your generous contributions over the years. However, we expect that Sharia Law will have replaced our Constitution by then and you will be taken care of based on zakat. This is based on the expectation that you have converted. Those who only subjugate themselves are not eligible for any relief. Your other choice is death for which you will not need any financial assistance. Good luck and Allah Akbar.

  86. #86
    On July 18th, 2011 at 5:38 pm, Flyoverman said:

    On July 18th, 2011 at 5:04 pm, DesertLover said:

    After the last four years, I am at the point where I plan to retire and make do with what I can muster privately. I will not take Medicare, and thus will forfeit Social Security.

    I have no intention of being placed at the mercy of the merciless. If it results in my premature death, I’d rather die free.

    When I retire, I will no longer be an asset to the government. They will view me as a liability and I will be treated as such. I consider my only option to be the equvalent of escape and evasion. If I am off the grid, they will ignore me.

  87. #87
    On July 18th, 2011 at 5:44 pm, Truesoldier said:

    Not sure if anyone else has read it, but Mark Steyn has a great column from Saturday regarding the debt ceiling and negotiations:

    Only in Washington is a debt increase negotiated between two groups of borrowers.

    Actually, it’s more accurate to call them two groups of spenders. On the one side are Obama and the Democrats, who in a negotiation supposedly intended to reduce American indebtedness are (surprise!) proposing massive increasing in spending (an extra $33 billion for Pell Grants, for example). The Democrat position is: You guys always complain that we spend spend spend like there’s (what’s the phrase again?) no tomorrow, so be grateful that we’re now proposing to spend spend spend spend like there’s no this evening.

    On the other side are the Republicans, who are the closest anybody gets to representing, albeit somewhat tentatively and less than fullthroatedly, the actual borrowers — that’s to say, you and your children and grandchildren. But in essence the spenders are negotiating among themselves how much debt they’re going to burden you with. It’s like you and your missus announcing you’ve set your new credit limit at $1.3 million, and then telling the bank to send demands for repayment to Mr. and Mrs. Smith’s kindergartner next door.

  88. #88
    On July 18th, 2011 at 5:50 pm, Truesoldier said:

    O/T, but kinda funny:
    UNION COUNTY, N.C. (WGHP)— An electronic DOT road sign was apparently hacked when a displayed message read “Impeach Obama.”

  89. #89
    On July 18th, 2011 at 5:59 pm, yaymm said:

    I agree with Cut, Cap and Balance. The Liberals decry the attempt because they say, everyone knows it will fail and it’s just “political grandstanding. “Of course it is, just like Liberals’ pretty successful attempts to lay the whole budget issue at the feet of the Republicans.

    Get the Liberals committed to a public vote. That’s what they are afraid of, because we can point to it to educate the American people that it’s actually the Liberals holding things up.

    All they want and Obama as well, is more of everyone else’s money to give away to their friends and to keep poor people voting for them. If that’s not political, they are deluded.

    They crow about how they want to help the under priveleged, the poor and minorities. If that were truly the case, there would be no more people in those catagories, given the money taxpayers have allowed politicians to spend on them over the last five decades. It’s all about votes.

  90. #90
    On July 18th, 2011 at 6:00 pm, yaymm said:

    I agree with Cut, Cap and Balance. The Liberals decry the attempt because they say, everyone knows it will fail and it’s just “political grandstanding. “Of course it is, just like Liberals’ pretty successful attempts to lay the whole budget issue at the feet of the Republicans.

    Get the Liberals committed to a public vote. That’s what they are afraid of, because we can point to it to educate the American people that it’s actually the Liberals holding things up.

    All they want and Obama as well, is more of everyone else’s money to give away to their friends and to keep poor people voting for them. If that’s not political, they are deluded.

    They crow about how they want to help the under priveleged, the poor and minorities. If that were truly the case, there would be no more people in those catagories, given the money taxpayers have allowed politicians to spend on them over the last five decades. It’s all about votes.

  91. #91
    On July 18th, 2011 at 6:01 pm, yaymm said:

    I agree with Cut, Cap and Balance. The Liberals decry the attempt because they say, everyone knows it will fail and it’s just “political grandstanding. “Of course it is, just like Liberals’ pretty successful attempts to lay the whole budget issue at the feet of the Republicans.

    Get the Liberals committed to a public vote. That’s what they are afraid of, because we can point to it to educate the American people that it’s actually the Liberals holding things up.

    All they want and Obama as well, is more of everyone else’s money to give away to their friends and to keep poor people voting for them. If that’s not political, they are deluded.

    They crow about how they want to help the under priveleged, the poor and minorities. If that were truly the case, there would be no more people in those catagories, given the money taxpayers have allowed politicians to spend on them over the last five decades. It’s all about votes.

  92. #92
    On July 18th, 2011 at 6:11 pm, FilAmWIguy said:

    On July 18th, 2011 at 3:08 pm, kwrxxx said:

    Failing to raise the debt ceiling is not the end of the world. Just like the Soviet Union did 20 yrs ago, the USA will have a major economic adjustment,

    Uhm, you really need to get a better history book. The USSR collapsed and died. Gone. Finished. They are history. You want the USA to have the same fate? Further, you are assuming not raising it would have a profound impact on the US economy. It would do so only because BO and the Dems so choose it by not cutting their spending and choosing to default. Raising it also carries hefty fiscal negatives.

    O/T – Just heard McCain on Hannity regarding the McConnell plan and he supports it. I’d take the GOP more seriously if they would kick McCain out of the party.

  93. #93
    On July 18th, 2011 at 6:14 pm, zorro said:

    Call their bluff.

    Agreed. Call that miserable socialist’s bluff.

  94. #94
    On July 18th, 2011 at 6:15 pm, Hangfire said:

    On July 18th, 2011 at 5:50 pm, Truesoldier said:

    O/T, but kinda funny:
    UNION COUNTY, N.C. (WGHP)— An electronic DOT road sign was apparently hacked when a displayed message read “Impeach Obama.”

    Not off-topic, mate.

    Must be a raaaaaaaaaaacist or two down/ up there in N. Carolina.

  95. #95
    On July 18th, 2011 at 6:18 pm, Marshall_Will said:

    Flyoverman said:

    Next you start cutting departments; no more DOE SWAT teams…..

    Obama is not going to surrender one square inch of his Regime. This is not politics; it’s war and the GOP had best think of it in those terms.

    Awww… no more DOE/FDA SWAT teams… Wait!

    An electronic DOT road sign was apparently hacked when a displayed message read “Impeach Obama.”

    Let’s roll boyz!

  96. #96
    On July 18th, 2011 at 6:22 pm, Marshall_Will said:

    proposing massive increasing in spending (an extra $33 billion for Pell Grants, for example).

    Yep, gotta’ have that youth vote you know? Reminds me of Rodney Dangerfield in “Back To School”. Shakespeare for everybody I tell ya’!

  97. #97
    On July 18th, 2011 at 6:26 pm, ShoreDor said:

    Boehner and Cantor went to ANOTHER secret meeting at the White House yesterday. They are determined to get rolled like a couple of rubes who just blew into town with the egg money.

    CALL HIS BLUFF, YA MORONS!!!

  98. #98
    On July 18th, 2011 at 6:29 pm, Truesoldier said:

    Oh and just how well does the government do when “investing”…just ask the city of Salinas:

    The city of Salinas had invested more than half a million dollars in Green Vehicles, an electric car start-up company.

    All of that money is now gone, according to Green Vehicles President and Co-Founder Mike Ryan.

    The start-up company set up shop in Salinas in the summer of 2009 after the city gave Ryan a $300,000 community development grant.

    When the company still ran into financial trouble last year, the city of Salinas handed to Ryan an additional $240,000 in investment money.

    Salinas Mayor Dennis Donohue said he was “surprised and disappointed” by the news. City officials were equally irked that Ryan notified them through an email that his company had crashed and burned.

  99. #99
    On July 18th, 2011 at 6:34 pm, Truesoldier said:
  100. #100
    On July 18th, 2011 at 6:35 pm, Whirled Peas said:

    On July 18th, 2011 at 2:52 pm, Hangfire said:

    I on’t want my SS when I retire. I want it N O W. Just what I have paid into it; no more, no less.

    What’s that? I’ve paid in more than I will ever take out in benefits? How did THAT happen?

    Politicians stole it to close the deficit gap owed to the third and fourth generation entitlement parasites… they got to it before you did! Sucka!

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