Check out today's Paul Krugman take on the Republican's leading scum bag!!
Pink Slime Economics
By PAUL KRUGMAN
The big bad event of last week was, of course, the Supreme Court hearing
on health reform. In the course of that hearing it became clear that
several of the justices, and possibly a majority, are political
creatures pure and simple, willing to embrace any argument, no matter
how absurd, that serves the interests of Team Republican.
But we should not allow events in the court to completely overshadow
another, almost equally disturbing spectacle. For on Thursday
Republicans in the House of Representatives passed what was surely the
most fraudulent budget in American history.
And when I say fraudulent, I mean just that. The trouble with the budget
devised by Paul Ryan, the chairman of the House Budget Committee, isn’t
just its almost inconceivably cruel priorities, the way it slashes
taxes for corporations and the rich while drastically cutting food and
medical aid to the needy. Even aside from all that, the Ryan budget
purports to reduce the deficit — but the alleged deficit reduction
depends on the completely unsupported assertion that trillions of
dollars in revenue can be found by closing tax loopholes.
And we’re talking about a lot of loophole-closing. As Howard Gleckman of
the nonpartisan Tax Policy Center points out, to make his numbers work
Mr. Ryan would, by 2022, have to close enough loopholes to yield an
extra $700 billion in revenue every year. That’s a lot of money, even in
an economy as big as ours. So which specific loopholes has Mr. Ryan,
who issued a 98-page manifesto on behalf of his budget, said he would
close?
None. Not one. He has, however, categorically ruled out any move to
close the major loophole that benefits the rich, namely the ultra-low
tax rates on income from capital. (That’s the loophole that lets Mitt
Romney pay only 14 percent of his income in taxes, a lower tax rate than
that faced by many middle-class families.)
So what are we to make of this proposal? Mr. Gleckman calls it a “mystery meat budget,”
but he’s being unfair to mystery meat. The truth is that the filler
modern food manufacturers add to their products may be disgusting —
think pink slime — but it nonetheless has nutritional value. Mr. Ryan’s
empty promises don’t. You should think of those promises, instead, as a
kind of throwback to the 19th century, when unregulated corporations bulked out their bread with plaster of paris and flavored their beer with sulfuric acid.
Come to think of it, that’s precisely the policy era Mr. Ryan and his colleagues are trying to bring back.
So the Ryan budget is a fraud; Mr. Ryan talks loudly about the evils of
debt and deficits, but his plan would actually make the deficit bigger
even as it inflicted huge pain in the name of deficit reduction. But is
his budget really the most fraudulent in American history? Yes, it is.
To be sure, we’ve had irresponsible and/or deceptive budgets in the
past. Ronald Reagan’s budgets relied on voodoo, on the claim that
cutting taxes on the rich would somehow lead to an explosion of economic
growth. George W. Bush’s budget officials liked to play bait and
switch, low-balling the cost of tax cuts by pretending that they were
only temporary, then demanding that they be made permanent. But has any
major political figure ever premised his entire fiscal platform not just
on totally implausible spending projections but on claims that he has a
secret plan to raise trillions of dollars in revenue, a plan that he
refuses to share with the public?
What’s going on here? The answer, presumably, is that this is what
happens when extremists gain complete control of a party’s discourse:
all the rules get thrown out the window. Indeed, the hard right’s grip
on the G.O.P.
is now so strong that the party is sticking with Mr. Ryan even though
it’s paying a significant political price for his assault on Medicare.
Now, the House Republican budget isn’t about to become law as long as President Obama
is sitting in the White House. But it has been endorsed by Mr. Romney.
And even if Mr. Obama is reelected, the fraudulence of this budget has
important implications for future political negotiations.
Bear in mind that the Obama administration spent much of 2011 trying to
negotiate a so-called Grand Bargain with Republicans, a bipartisan plan
for deficit reduction over the long term. Those negotiations ended up
breaking down, and a minor journalistic industry has emerged as
reporters try to figure out how the breakdown occurred and who was
responsible.
But what we learn from the latest Republican budget is that the whole
pursuit of a Grand Bargain was a waste of time and political capital.
For a lasting budget deal can only work if both parties can be counted
on to be both responsible and honest — and House Republicans have just
demonstrated, as clearly as anyone could wish, that they are neither.
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