Reid changing debt-ceiling plan to woo Republicans

posted at 10:00 am on July 30, 2011 by Ed Morrissey

After yesterday’s embarrassing plea to Mitch McConnell to save him from a cloture vote, Harry Reid went back to the drawing board.  The Hill reports that Reid has altered his plan to raise the debt ceiling by borrowing more from the plans of McConnell and John Boehner, hoping to shake loose enough Republicans to get past the procedural hurdle:

The biggest change is that Reid would give the president almost unilateral power to raise the debt limit, borrowing an idea introduced by Senate Republican Leader Mitch McConnell (R-Ky.).

Reid would have President Obama request a $2.4 trillion debt-limit increase in two installments of $1.2 trillion each. The requests would be subject to congressional resolutions of disapproval, but these would do little to restrict the president.

Obama could veto any resolution of disapproval, and it would take a two-thirds vote in both chambers of Congress to override him.

According to a Senate Democratic aide, Reid also increased the total level of spending cuts from $2.2 trillion to $2.4 trillion, in part by using the January baseline — a budget maneuver House Speaker John Boehner (R-Ohio) used on a previous version of his debt-limit plan. The January budget baseline does not count cuts Congress implemented in legislation passed this spring to avert a government shutdown.

The McConnell mechanism wouldn’t stop Obama from raising the debt ceiling limit in the next installment, but Republicans might be more inclined to see that as a bug rather than a feature by now.  The “cuts” – such as they are – would come up front, with the possibility for getting more cuts down the line.  Obama would have to raise the limit himself, and Republicans in both chambers would be able to vote against it, forcing Democrats to own the hikes.  It’s not pretty, but it would set up the debate in 2012 as well as can be expected for the GOP at this point.

Reid also is rumored to be offering a vote on a balanced budget amendment as a sweetener for Republicans in the Senate, although not requiring passage.  That’s also a good development for the GOP.  A properly written amendment would force Congress to control spending rather than raise taxes by limiting the federal budget to a constant percentage of GDP.  If Democrats vote such a plan down, it’s yet another point for the 2012 debate.

However, according to The Daily Caller’s Amanda Carey and the Republicans on the Senate Budget Committee, the Reid plan has a big and unpleasant surprise for Republicans on taxes.  Reid’s figures rely on current law — and current law has all of the Bush-era tax rates expiring and rising to their previous levels.  It also assumes that Congress won’t provide a “patch” for the AMT:

Reid’s proposal includes a provision that “deems” budget resolutions for fiscal years 2012 and 2013, but Senate Democrats have not yet produced a 2012 budget proposal, much less one for 2013.

Within those anticipated budget resolutions lie the tax increases, according to the analysis, and here is where it gets tricky.

When the Congressional Budget Office scores a proposal, it uses either current policy or current law as its baseline. Reid’s bill is based on current law, which assumes certain tax breaks will expire according to pre-determined scheduled. That is a big deal.

The 2001–2003 Bush tax cuts are set to expire at the end of 2012. And some business tax breaks, “death tax” cuts, and the patch for the Alternative Minimum Tax expire at the end of 2011. Reid’s proposal assumes that Congress will not act to renew or extend those expiring tax breaks.

Total tax hike over 10 years, according to the GOP analysis?  $3.8 trillion.  And those would not just be tax hikes on the “wealthy,” either.  Those tax hikes would hit the middle class like a freight train, both on basic rates and the AMT creep that Congress has parried for years.  If this analysis is correct, Reid either wants to hit the US with the biggest tax hike in its history, or he’s offering bogus deficit reduction that will never occur.

If this sounds like a bad deal to you, keeping in mind what Tina wrote yesterday as well, then it just shows that you’re paying attention.  It could get worse, though, as this Star Wars parody shows:

I was actually looking for the original clip when I came across this one — which describes the situation far better.  Who knew Lando Calrissian was a Tea Party supporter?

Update: Fred Bauer says S&P is counting on the expiration of all the Bush tax rates, too.

Breaking on Hot Air

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

Comment pages: 1 2

Total tax hike over 10 years, according to the GOP analysis? $3.8 trillion. And those would not just be tax hikes on the “wealthy,” either. Those tax hikes would hit the middle class like a freight train, both on basic rates and the AMT creep that Congress has parried for years.

Cannot imagine one single Republican voting for this, not even the Maine sisters.

Rational Thought on July 30, 2011 at 10:06 AM

Let me say it one more time—conservatives will get blamed by the MSM for ANYTHING that the Democrats want them to get blamed for. STOP WORRYING ABOUT WHO LOVES YOU IN DC and do the right thing.

dirtseller on July 30, 2011 at 10:07 AM

If a bill is not clearly understood by the average citizen, it has no business even coming to the floor for a vote.

Anyone in favor of letting the donks craft a bill with a bunch of “what ifs” is crazy.

Republicans should stand firm and see who blinks.

franksalterego on July 30, 2011 at 10:10 AM

A 3.8 trillion dollar tax hike? That is quite the sweetener.

myrenovations on July 30, 2011 at 10:10 AM

This is a horrible deal. I never liked the McConnell plan in giving Obama greater imperial powers. Now we get a tax increase.

If my Republican senator and/or representative votes for this I’m going all out against them. Primary time!!!

taney71 on July 30, 2011 at 10:10 AM

Cannot imagine one single Republican voting for this, not even the Maine sisters.

Rational Thought on July 30, 2011 at 10:06 AM

Hello, Scotty…

bofh on July 30, 2011 at 10:11 AM

The budget needs to be voted on in the house. The senate can deem it passed all they want but it still needs to pass the house, right?

Corsair on July 30, 2011 at 10:13 AM

There is no way this passes the house even if he manages to pick of Brown, Snowe and Collins.

No freaking way – not after what just went down.

gophergirl on July 30, 2011 at 10:13 AM

Reid would have President Obama request a $2.4 trillion debt-limit increase in two installments of $1.2 trillion each. The requests would be subject to congressional resolutions of disapproval, but these would do little to restrict the president.

Obama could veto any resolution of disapproval, and it would take a two-thirds vote in both chambers of Congress to override him.

That BETTER be DOA… {{fume}}

golfmann on July 30, 2011 at 10:14 AM

Reid changing debt-ceiling plan to woo Republicans

If any Republican goes for this plan, we have a lot of primarying to do. What a joke this is. And he says Republicans are obstructionists!

Christian Conservative on July 30, 2011 at 10:15 AM

We need new government. Not a new Constitution, just a new group of “leaders”.

Lets fire management and hire some new blood.

BobMbx on July 30, 2011 at 10:15 AM

Gosh, why didn’t Harry Reid put his debt plan out months ago when Ryan’s budget plan was passed in the house?
The GOP has worked on the debt ceiling since the President asked for more money in Jan.

They could have hashed this out in conference long ago.

Because the Republicans had the courage to act and the Democrats had the courage to demagogue.

Now with a few days to go (supposedly) we’ll see the liberal wish list (terrorist demands) for the first time.

Speakup on July 30, 2011 at 10:17 AM

One of my favorite Robot Chicken clips of all times…

Purple Fury on July 30, 2011 at 10:18 AM

Reid can’t craft a bill that repubs will pass and bo will sign. It is a game of chicken and the repubs should call bo’s bluff. Bo will eventually take the blame if repubs message is bold enough, no time for the weak of heart.

tim c on July 30, 2011 at 10:20 AM

I think I’d tell Dingy Harry to pound sand.

Purple Fury on July 30, 2011 at 10:20 AM

Now may be the time to actually Tea Party the Capitol. If were are going to get blamed for actually not wanting an Imperial President to reign over us (while holding a blank check-book no less) AND for not accepting tax hikes, then we should embrace this blame fully. To the Gates of Mordor, my friends.

Mutnodjmet on July 30, 2011 at 10:23 AM

If any Republican goes for this plan, we have a lot of primarying to do.

…..

We’re just waiting for the names.

artist on July 30, 2011 at 10:23 AM

RT I can see brown voting with harry

cmsinaz on July 30, 2011 at 10:24 AM

2nd that dirtseller

cmsinaz on July 30, 2011 at 10:25 AM

Who knew that the Popeye cartoons would be the cornerstone of the US economic policy. I formally name it “Whimpy Economics”. If you buy me a hamburger today I will gladly pay you back Tuesday. Like the cartoon Tuesday never comes but the fools continue to buy the hamburgers. That is our country in a nut shell. To all of you who have played by the rules all you life get the K-Y jelly out and lubricate well because we are about to get royally screwed.

chemman on July 30, 2011 at 10:25 AM

Won’t pass the House.

ladyingray on July 30, 2011 at 10:27 AM

Reid also is rumored to be offering a vote on a balanced budget amendment as a sweetener for Republicans in the Senate, although not requiring passage. That’s also a good development for the GOP.

Why is the drivel continuously spat out? It’s not a good development Ed. As part of the deal to cut the budget – we got a promise to include a vote on defunding PPP. It was promptly held – and it was promptly shot down.

That’s why Reid never holds these kinds of votes – he saves them for negotiations and adds them in as “sweeteners” for his deals – but these votes never pass because there are still more Dims and RINOs in the Senate than there are Conservatives.

Oh but, you say … “These votes get these guys on record! And the voters can punish them for these votes!”

Ahhh – sure … if the voters are even watching. You expect the MSM to help us put out the word that Dimmocrits and Rinos are against a BBA?

Come on!

HondaV65 on July 30, 2011 at 10:28 AM

I wouldn’t trust Harry Reid if he was giving away free ice water in the Mojave Desert…

Khun Joe on July 30, 2011 at 10:29 AM

Oh for crying out loud! What in the name of sanity is going on in dc? Sorry, I used sanity and there is none in dc. Well this should make the rating agencies lower our ratings just to hear this might pass? I hear mexico is cheap to live, if you aren’t killed by the drug gangs.
L

letget on July 30, 2011 at 10:30 AM

When the Communist Party openly endorses Obama and the democrats, you know life as we know it is possibly coming to a very sad end.

GOOGLE: Communist Party endorses Obama democrats

volsense on July 30, 2011 at 10:30 AM

BUUHHWAHAHAHAHA!!

You’ve got to be freakin’ kidding, right ?

pambi on July 30, 2011 at 10:32 AM

Won’t pass the House.

ladyingray on July 30, 2011 at 10:27 AM

Only needs about 24 or so GOP votes – I’m sure there are enough establishment RINO’s who’ll vote for it.

But – that’s fine as long as they quit demanding that Tea Party Freshmen violate the primary principle they were elected on.

Let the Dims and Rino’s pass this … make ‘em OWN IT.

HondaV65 on July 30, 2011 at 10:32 AM

Starring Harry Reid as Napoleon.

Hening on July 30, 2011 at 10:33 AM

No worries. John “A little help getting out of this wet paper bag” Boehner and Alan “shut up and give me your schizophrenic Tea Pary MOney” West will make sure we don’t have more than an additional $2 Trillion in taxes.

Hongqi on July 30, 2011 at 10:34 AM

Shut ‘em down. Lets see the 10′s of thousands of nonessential staff being laid off. Its the only way. In 2012 the DC putrid will be sanitized. SHUT THEM DOWN!

jbh45 on July 30, 2011 at 10:37 AM

Better headline:

Reid changing debt ceiling plan to serve liberal agenda and screw conservatives/TP/GOP as much as possible

Purple Fury on July 30, 2011 at 10:39 AM

Chicken.

Key West Reader on July 30, 2011 at 10:41 AM

It will pass in the House with Pelosi leading the charge to save the day!

txmomof6 on July 30, 2011 at 10:41 AM

I don’t see the House passing this.

J.E. Dyer on July 30, 2011 at 10:41 AM

Shut ‘em down. Lets see the 10′s of thousands of nonessential staff being laid off. Its the only way. In 2012 the DC putrid will be sanitized. SHUT THEM DOWN!

jbh45 on July 30, 2011 at 10:37 AM

You might want to think of the ramifications we might face if welfare checks and food stamps are not paid. That will be chaotic, I think.

Key West Reader on July 30, 2011 at 10:42 AM

J.E. Dyer on July 30, 2011 at 10:41 AM
They only need 217 votes and they have 190 Democrat votes don’t they?

txmomof6 on July 30, 2011 at 10:42 AM

Maybe Boehner can vote to table it? Just kidding, I know he won’t, he will just pass it.

txmomof6 on July 30, 2011 at 10:45 AM

I was speaking with a “libertarian” friend in California last night who doesn’t pay close attention to what’s going on but is greatly alarmed about the country defaulting.

He blames the Republicans, of course, and assumes that the Democrats are all acting in good faith and offering lots of reasonable compromises.

Kensington on July 30, 2011 at 10:46 AM

You cannot give this man another blank check. This is ridiculous.

Key West Reader on July 30, 2011 at 10:46 AM

If this man has his fingerprints on it, then it’s corrupted for sure. Harry Reid should be in prison and is a perfect example of how the establishment lives above the laws that govern the rest of us.

Keemo on July 30, 2011 at 10:46 AM

So this is how you “woo” Republicans? My God, it’s even worse than I thought.

There is one good thing that would emerge from an expiration of the current tax rates: a bunch of people would go back on the income tax roll.

SukieTawdry on July 30, 2011 at 10:49 AM

Boehner @ National Review Online= End this Crisis–Senate Majority Leader Harry Reid is a good man.
Echos from the past–McCain=Zero will make a good president.

dragondrop on July 30, 2011 at 10:49 AM

All Aboard!

Key West Reader on July 30, 2011 at 10:51 AM

http://www.speaker.gov/blog/?postid=254533
Boehner’s response. Hopefully they will use Flake’s idea and amend Reid’s bill with a BBA to see if any Dems vote on it.

txmomof6 on July 30, 2011 at 10:53 AM

I fully expect Reid’s bill to pass the House. The GOP leadership will cave in order to avoid “owning” the debt ceiling crisis. They will give Obama the authority to raise the debt ceiling, swallow massive tax increases, and “deem” the 2012 and 2013 budgets as passed.

Never mind the facts that the American public wants a BBA, or wants Congress to actually reduce spending, or to cap the Federal Budget to a percentage of GDP.

These are the people who brought the United States to it’s current fiscal crisis. These are the leaders who have no viable plan to restore our economy or to create an environment who speeds job growth. These are the leaders who fail to adhere to laws they have passed. These are the leaders who want us to share the sacrifice of reducing the deficit while they fail to produce any viable plan to accomplish that.

Brought to you by the letter F and U, America.

jackal40 on July 30, 2011 at 10:57 AM

Rush was right.

Susanboo on July 30, 2011 at 10:59 AM

Yeah, who called all of this. BTW, I used this Star Wars reference yesterday on this blog. You are welcome for the idea…

I believe it was Fossten who had a good Star Trek one right beside it.

Pattosensei on July 30, 2011 at 10:59 AM

If this man has his fingerprints on it, then it’s corrupted for sure. Harry Reid should be in prison and is a perfect example of how the establishment lives above the laws that govern the rest of us.

Keemo on July 30, 2011 at 10:46 AM

You got that right. Screw him and his tax hikes.

scalleywag on July 30, 2011 at 11:01 AM

I can say that if the House passes this bill, or anything remotely resembling it, it will show that the 2010 election cycle was nothing but kabuki, as the Democrats will still control both Houses.

Scott H on July 30, 2011 at 11:03 AM

If reid gets this through, Boehner is through. Probably through anyway. Scott Brown will vote for it…that’s one!

JohnnyMojo on July 30, 2011 at 11:04 AM

http://www.speaker.gov/blog/?postid=254533
Boehner’s response. Hopefully they will use Flake’s idea and amend Reid’s bill with a BBA to see if any Dems vote on it.

txmomof6 on July 30, 2011 at 10:53 AM

HANG TOUGH GOP!!!!!!!!! Harry CAN’T win this one.

scalleywag on July 30, 2011 at 11:05 AM

You cannot negotiate with terrorists. How many times will the GOP get beheaded before learning this? Apparently, they never will learn.

SouthernGent on July 30, 2011 at 11:06 AM

HANG TOUGH GOP!!!!!!!!! Harry CAN’T win this one.

scalleywag on July 30, 2011 at 11:05 AM

You know how some on here keep saying “The GOP will betray you.” well I’d like you to know something:

“The GOP just betrayed you! Again!”

Pattosensei on July 30, 2011 at 11:08 AM

There is no default. Even Fox News is blowing smoke. There is money to pay bondholder interest. There is not enough to pay everything else. That is NOT default. Completely manufactured by LSM and Dems to herd cattle as in TARP.

Starlink on July 30, 2011 at 10:26 AM

Ambrose Evans-Pritchard is one of the best financial reporters on the planet. Excuse me if I take what he says more seriously than some anonymous joker on the internet.

A chorus of global banks has warned that Washington risks triggering a global slump and may suffer permanent loss of credibility by flirting with default on America’s $14.3 trillion (£8.8 trillion) federal debt.

The dangers are almost as great if the US fails to lift the debt ceiling and avoids default by enacting the most drastic fiscal squeeze in modern history.

“Default would be an act of collective insanity,” said Willem Buiter, Cititgroup’s chief economist. “Even if a default were cured promptly, it would severely dent the credibility of the US as a global financial player and the provider of the world’s leading reserve currency. There would be an immediate repricing of the dollar and an increase in medium and long-term nominal and real interest rates. Asset, credit, and funding markets in the US and the world as a whole would likely suffer and a global recession would likely result, centred in the US, but not restricted to it.”

Andrew Garthwaite from Credit Suisse said a default would be catastrophic, causing 5pc contraction in the US economy and a 30pc drop on Wall Street, with “massive” ramifications for the world.

“It is almost unthinkable to believe the US would miss a coupon payment [$29bn are due on August 15]. If the US does default, the repo market would probably cease to work. It is hard to imagine money market funds operating under this scenario. The inter-bank market would freeze up. The fallout would be far worse than after Lehman’s default,” he said. “It would be horrible to think what happens to the dollar if the Fed hints it would offset the growth damage with QE3.”

http://www.telegraph.co.uk/finance/financialcrisis/8669352/Global-slump-warnings-if-US-triggers-insane-default.html

windansea on July 30, 2011 at 11:09 AM

2010 was for nothing.

Screw you Republicans.

tetriskid on July 30, 2011 at 11:10 AM

Since the Dems are determined to throw this back on Boehner (shocker) and that supposedly he’ll have to ask Pelosi for help here’s Nancy’s right wing extremist view from 07.

Nancy Pelosi on Deficit – Jan, 2007

Speakup on July 30, 2011 at 11:11 AM

The Dingy Harry proposal will never pass the House. Thanks to the lack of leadership by the Democrats and the Chocolate Jesus, we have ourselves a Mexican standoff.

pdigaudio on July 30, 2011 at 11:11 AM

“Default would be an act of collective insanity,” said Willem Buiter, Cititgroup’s chief economist.
windansea on July 30, 2011 at 11:09 AM

Says someone whose employer owns Trillions of Treasuries.

txmomof6 on July 30, 2011 at 11:12 AM

Ambrose Evans-Pritchard is one of the best financial reporters on the planet. Excuse me if I take what he says more seriously than some anonymous joker on the internet.

windansea on July 30, 2011 at 11:09 AM

Weren’t you called out yesterday for using the same logical fallacy? (plead to authority)

Pattosensei on July 30, 2011 at 11:12 AM

A chance to vote on a balanced budget amendment, but with a $3.8 trillion tax hike?

I wonder what Sarah Palin will say about that.

Reid is hoping to herd panicked Congressmen into voting for this mess, like they did on TARP in 2008.

Remember, the Fed can improvise and fund the Treasury with $500 billion more dollars of emergency capital, even after August 2nd, if it has to.

Emperor Norton on July 30, 2011 at 11:12 AM

Nevada re-elected the putz. They get no sympathy from me for having the nation’s highest unemployment rate!They earned it.

MaiDee on July 30, 2011 at 11:15 AM

A chance to vote on a balanced budget amendment, but with a $3.8 trillion tax hike?

I wonder what Sarah Palin will say about that.

Reid is hoping to herd panicked Congressmen into voting for this mess, like they did on TARP in 2008.

Remember, the Fed can improvise and fund the Treasury with $500 billion more dollars of emergency capital, even after August 2nd, if it has to.

Emperor Norton on July 30, 2011 at 11:12 AM

Not to mention that the vast majority of spending cuts in Reid’s plan come in Defense spending.

txmomof6 on July 30, 2011 at 11:16 AM

Mr. Reid, Obama and the Dems have had veeeery partisan views about the debt ceiling in the past, according to an article by Byron York:

A look at Reid’s record, however, shows that in the last decade his own voting on the issue of the debt ceiling is not only partisan but perfectly partisan. According to “The Debt Limit: History and Recent Increases,” a January 2010 report by the Congressional Research Service, the Senate has passed ten increases to the debt limit since 2000. Reid never voted to increase the debt ceiling when Republicans were in control of the Senate, and he always voted to increase the debt ceiling when Democrats were in control.

Other Democrats have also accused Republicans of partisanship in the debt fight. “It’s time for bipartisan leadership, not partisan gamesmanship,” said the number-two Democrat in the Senate, Richard Durbin, after Republicans pulled out of budget talks with President Obama. And Obama himself described the debt debate as a “partisan three-ring circus” — leaving no doubt that it is Republicans who are practicing partisanship.

At look at Durbin’s record shows that he, too, has voted along absolutely partisan lines. In the last decade, Durbin never voted to increase the debt ceiling when Republicans were in control and always voted to increase the debt ceiling when Democrats were in control. As for Obama, there were four votes to raise the debt ceiling when he was in the Senate. He missed two of them, voted no once when Republicans were in charge, and voted yes once when Democrats were in charge.

http://washingtonexaminer.com/blogs/beltway-confidential/2011/07/reid-durbin-and-obama-very-partisan-record-debt-ceiling

theotherone on July 30, 2011 at 11:17 AM

Ambrose Evans-Pritchard is one of the best financial reporters on the planet.

I posted that link last night in the QOTD thread. But I think I disagree. Evans-Pritchard is the best.

However, I posted it to illustrate the predictable wails from the banking oligarchs, as they try to scare you. In the event of a US default, a lot of their investment positions will blow up in their faces. As for Citibank, it was reported last week that they borrowed a total of $2.5 trillion from the Fed, more than any other entity. Citibank must the world’s largest welfare recipient.

Emperor Norton on July 30, 2011 at 11:21 AM

Reid and Boehner obviously have no intention of making real spending cuts. They should quit lying and condescending to the America people like crooks and just pass a clean debt ceiling hike.

FloatingRock on July 30, 2011 at 11:21 AM

theotherone on July 30, 2011 at 11:17 AM

Gee, why can’t we get some principled people like that? There are only 22 heroes in the House right now. I wish West was one of them, but I’ll settle for the 22 hobbits we got. Bring us through Mordor, House 22!

Pattosensei on July 30, 2011 at 11:22 AM

Republicans on the Senate Budget Committee

… can stop it. The House Republicans can stop it. It can’t be allowed to pass with nearly $4 trillion in tax hikes.

DrSteve on July 30, 2011 at 11:23 AM

What in the world is wrong with these fools . . . they have an economy that is crashing down around their ankles and they want us to pay more taxes so they can spend more money they don’t have and run up our deadly debt. They’re absolutely insane.

rplat on July 30, 2011 at 11:23 AM

Why isn’t the One Percent Solution Connie Mack and other are advocating being considered? Seems the most straight forward, relatively painless, gives the congress the choice to act on what to cut, but if they can’t get their act together then it turns into 1% across the board, reduces the debt by 7.5 trillion and balances the deficit in 8 years. Granted the Balance Budget Amendment concept is good but this would offer a solution in the meantime. I haven’t heard much mention of this bill proposal and am not sure why. Any Comments?

wubu on July 30, 2011 at 11:29 AM

The esteemed senior senator from Illinois, Durbin the Dick, just received his latest talking points from the Chicago Whitehouse. Here they are:

It’s time for Speaker Boehner, Eric Cantor, and House Republicans to get real.

Instead of accepting the open hand that President Obama, Senator Reid, and I have extended to work out a bipartisan solution to the default crisis — a crisis that Republicans themselves have created — the House GOP has, yet again, batted it away.

Their latest move? Ramming an irresponsible bill through the House that would require us to have this very same debate again six months from now — and, unbelievably, require Congress to amend the Constitution before raising the debt ceiling again.

In short, House Republicans have decided to put the interests of the extreme right-wing fringe of their party ahead of the interests of the American people.

It’s reckless, it’s dangerous — and it’s wrong.

Click here to tell Speaker Boehner, Eric Cantor, and House Republicans to get real: Stop holding America’s economy hostage, and work for a responsible solution to the default crisis.

I’ve seen school groups touring the Capitol that are better behaved than Speaker Boehner, Eric Cantor, and the House Republican Caucus have been throughout this debate.

It shouldn’t be this hard. In fact, the debt ceiling has routinely been raised — 89 times since 1939 — more often than not by Republican presidents.

But instead of showing real, adult leadership, the Republicans’ “my way or the highway” approach risks derailing our economy’s fragile recovery by defaulting on our nation’s debt.

Click here to tell Speaker Boehner, Eric Cantor, and House Republicans to get real: Stop holding America’s economy hostage, and work for a responsible solution to the default crisis.

Look, the Democrats have gone way, way past halfway to try to reach common ground.

It’s time for House Republicans to come the rest of the way and meet us.

MayorDaley on July 30, 2011 at 11:29 AM

Reid needs Republican senators to pass it, so it may not ever make it out of the Senate. We need to call the undecided senators.

youngTXcon on July 30, 2011 at 11:29 AM

Obama would have to raise the limit himself, and Republicans in both chambers would be able to vote against it, forcing Democrats to own the hikes. It’s not pretty, but it would set up the debate in 2012 as well as can be expected for the GOP at this point.

I’m sorry Ed, but I disagree. A large part of our problem is that politicians on both sides are more concerned about posturing and “setting up the debate” for 2012 than they are about dealing with the root causes of our current debt dilemma.

If Republicans pass the Reid bill allowing Obama to raise the debt limit on his own, and think that by voting later against him raising it, they can make the Democrats “own the hikes”, they are wrong. If Republicans vote for this now, they are owning Obama’s future debt ceiling hike.

Ordinary American on July 30, 2011 at 11:30 AM

Reid changing debt-ceiling plan to woo Republicans

This must be some hitherto-unknown definition of the word “woo”.

Purple Fury on July 30, 2011 at 11:39 AM

Shut ‘em down. Lets see the 10′s of thousands of nonessential staff being laid off. Its the only way. In 2012 the DC putrid will be sanitized. SHUT THEM DOWN!

jbh45 on July 30, 2011 at 10:37 AM

+1000.

SHUT
IT
DOWN

GrannyDee on July 30, 2011 at 11:40 AM

Here’s an thought provoking and eye opening sentence that needs to go ‘viral’ on the Internet:

If you spent $1 million a day since Jesus was born, you would have not spent $1 trillion by now…but ~$700 billion- same amount the banks got during bailout.

[Hot Air, Headlines, visualizing the debt]

I will never vote Republican again – Ann Coulter was right in 2008 – It was a choice between hemlock and arsenic – America is going to die, if we continue to elect anyone with a D or R behind their name.

jackal40 on July 30, 2011 at 11:43 AM

Weren’t you called out yesterday for using the same logical fallacy? (plead to authority)

Pattosensei on July 30, 2011 at 11:12 AM

I don’t care to play logic games, when experts like Sowell or Evans-Pritchard speak I listen to them because over time their opinions have proved correct, thus earning my trust.

Anonymous internet commenters, not so much. Your choice is up to you.

windansea on July 30, 2011 at 11:46 AM

Strangely, as the U.S. citizenry passionately criticizes their government for running up the budget deficit, a greater irony is afoot: When it comes to debt management, Americans are sadly worse than their government.

While government debt sits at 94 percent of national revenue, U.S. household debt sits at a whopping 107 percent of personal income. The household balance sheets of Americans are in worse condition than anytime since the Great Depression. The ratio of household debt-to-GDP is greater than anytime since 1929. And while we all are trying to comprehend a poorer nation, many American’s have not yet comprehended their own personal poverty.

http://finance.yahoo.com/news/Americans-Are-More-Indebted-usnews-1268061439.html?x=0

windansea on July 30, 2011 at 11:51 AM

Look, the Democrats have gone way, way past halfway to try to reach common ground.

It’s time for House Republicans to come the rest of the way and meet us.

MayorDaley on July 30, 2011 at 11:29 AM

IMHO, I think this can be summed up very simply in an Alex Trebek fashion:

Does America want to be a Socialist Country or a Representative Republic?

That is the question that must be asked and answered in November 2012.

Key West Reader on July 30, 2011 at 11:51 AM

This must be some hitherto-unknown definition of the word “woo”.

Purple Fury on July 30, 2011 at 11:39 AM

Silly purple, this Wu’s for Woo

Key West Reader on July 30, 2011 at 11:54 AM

However, I posted it to illustrate the predictable wails from the banking oligarchs, as they try to scare you. In the event of a US default, a lot of their investment positions will blow up in their faces. As for Citibank, it was reported last week that they borrowed a total of $2.5 trillion from the Fed, more than any other entity. Citibank must the world’s largest welfare recipient.

Emperor Norton on July 30, 2011 at 11:21 AM

yes of course their wails are predictable as they have more skin in the game. Evans-Pritchard is no dummy and knows this as well, but he also realizes the world of hurt a default would bring to the US dollar and stock market, thus his warning.

windansea on July 30, 2011 at 11:57 AM

We all know that you can paint $hit any color and it still stinks…but what I want to know is how many freakin’ colors do they have…their stupid ideas truly knows no limits…

Ltlgeneral64 on July 30, 2011 at 12:01 PM

Why are we so stupid to fall for their same games. Run up the spending -don’t put in a budget -force a crisis (too good to not create?)and then get the dumb GOP to sign anything to get the orchestrated media pressure off of them.

A game made for GOP fools who didn’t see this coming and denounce it from day one. Thank God we aren’t yet in WWIII with these poll following wimps as leaders. Shame on us!

Don L on July 30, 2011 at 12:06 PM

Harry Reid is like The Terminator on killing those “Bush tax cuts.”

It’s what he does….it’s all he does…..

rockmom on July 30, 2011 at 12:07 PM

Hahaaaa..the tea-party has become robin hood….favorite of the left!

tinkerthinker on July 30, 2011 at 12:09 PM

Does America want to be a Socialist Country or a Representative Republic?

That is the question that must be asked and answered in November 2012.

Key West Reader on July 30, 2011 at 11:51 AM

Disagree – great and only question, but it should have been asked before the GOP wimped out with Boehnercrash II.

What was the value if winning big in November if we enter these vital battles with our tail between our legs? I don’t blame Boehner for being Boehner, I blame the GOP for being sheepishly led by the Boehner-like elitist punditry class into this trap.

Don L on July 30, 2011 at 12:10 PM

Reid and his senatorial clown act are losing it. This poor sick Republic should be put in receivership.

rplat on July 30, 2011 at 12:15 PM

wubu on July 30, 2011 at 11:29 AM

Re: Connie Mack’s plan

Hannity had him on his show last night and he’s been on his radio show a couple of times. Hannity has been promoting it.

I think Connie Mack needs to talk to Boehner.

bluefox on July 30, 2011 at 12:18 PM

Reid’s figures rely on current law — and current law has all of the Bush-era tax rates expiring and rising to their previous levels.

Um, that’s pretty much standard practice, I think. Even if it weren’t, we want everyone to use Bush tax cut expiring as the baseline—otherwise they can do what Reid did with the surge in Afghanistan; get a “deficit reduction” of $4T by assuming that Bush tax cuts will expire (while baseline doesn’t make that assumption).

Chances are, if we win the 2012 elections, we will not only extend the cuts past 2012, but we may also make it the permanent law, not just policy. And we will be in a position to make more significant cuts too.

The truth is, nothing in these plans that happen past 2012 (or part of 2013) matter anyway. Everything will change after 2012.

novakyu on July 30, 2011 at 12:24 PM

Watching the Debt Ceiling Soap Opera in DC as an interested observer, I’ve decided that there are three categories, in which all the major players in this political drama fall: the Principled, the Unprincipled, and the Politically Expedient.

kingsjester on July 30, 2011 at 12:26 PM

Attention: Since the Congress is in session and Reid will try to get this passed in the Senate as ASAP and get it to the House ASAP, we need to start emailing/calling/faxing NOW.

This is the site I use as it has everything you need.

http://www.congressmerge.com/onlinedb/index.htm

bluefox on July 30, 2011 at 12:33 PM

Silly purple, this Wu’s for Woo

Key West Reader on July 30, 2011 at 11:54 AM

Bwahahahahahaha….

Oh we’re being Wu’d alright…

Purple Fury on July 30, 2011 at 12:38 PM

Reid changing debt-ceiling plan to screw Republicans

Correct headline.

Purple Fury on July 30, 2011 at 12:39 PM

Key West! I found the hitherto-unknown definition of woo:

http://www.skepdic.com/woowoo.html

Woo-woo (or just plain woo) refers to ideas considered irrational or based on extremely flimsy evidence or that appeal to mysterious occult forces or powers.

Here’s a dictionary definition of woo-woo:

adj. concerned with emotions, mysticism, or spiritualism; other than rational or scientific; mysterious; new agey. Also n., a person who has mystical or new age beliefs.

When used by skeptics, woo-woo is a derogatory and dismissive term used to refer to beliefs one considers nonsense or to a person who holds such beliefs.

Sometimes woo-woo is used by skeptics as a synonym for pseudoscience, true-believer, or quackery. But mostly the term is used for its emotive content and is an emotive synonym for such terms as nonsense, irrational, nutter, nut, or crazy.

For example:

“But the woo-woo faction has adopted the word “organic” to apply only to a plant grown without the use of anything but water and faith.”*

I think love is the one thing that should remain firmly in the realm of the woo-woo.*

The National Institutes of Health offered a course in feng shui, which prompted James Randi to write of woo-woo at the NIH.

…the woo-woos … are more comfortable being ignorant of reality.*

The Skeptic’s Dictionary has several hundred examples of mystical, spiritual, irrational, pseudoscientific, or anti-scientific New Age beliefs that many skeptics consider to be woo-woo.

Purple Fury on July 30, 2011 at 12:42 PM

The recession cometh, and it’s clear to me that the Dems are desperate for partners in blame. As a member of the Limbaugh Tea Party I say, “Hold The Line.” to as many Republican lawmakers as will listen. We will NOT go bankrupt, nor will we default. There will be economic pain because of past behavior, but the solution is apparent: Reduce the size of government by making actual – not baseline – cuts in spending. Eliminate useless and dangerous regulations that impede free and fair markets and entrepreneurship. Increase the revenue base by flattening taxation for individuals and corporations. Pass a Balanced Budget Amendment to the Constitution.
To those who will not listen, there will be elections in 2012.

Randy

williars on July 30, 2011 at 1:10 PM

This is the site I use as it has everything you need.

http://www.congressmerge.com/onlinedb/index.htm

bluefox on July 30, 2011 at 12:33 PM

Don’t bother – we’ve already lost this game. Dimmocrits are addicted to money and RINO’s are terrified beyond belief of being blamed for a default. In the end – these two facts will come together to produce an absolutely vomitous compromise. Since there are more DIMs and RINO’s than there are Tea Party Patriots … we will lose.

The Tea Party freshmen need to STOP thinking about themselves as members of “Team GOP” and START realizing that the REAL crap sandwich hasn’t even come out of the kitchen yet. Come early next week – they’ll be asked to eat it when it does.

They should resolve … NOW – to vote against it. They should force the Dims and the Rino’s to eat that sandwich – and OWN IT.

And face the voters next year.

HondaV65 on July 30, 2011 at 1:20 PM

Sen. John Barrasso has several observations about Reid’s delay of a vote.
http://www.nationalreview.com/corner/273179/democratic-delay-and-way-forward-sen-john-barrasso

onlineanalyst on July 30, 2011 at 1:24 PM

It’s not pretty, but it would set up the debate in 2012 as well as can be expected for the GOP at this point.

If Democrats vote such a plan down, it’s yet another point for the 2012 debate.

Ed, Ed,… the McConnell “shift the blame to Obama and shaft small Govt. conservatives/tea partiers” plan is a non-starter. Infact, it is one of the silliest and most cynical plans ever proposed by a party leader for the benefit of the opposition.

I doubt Dems would have agreed to or will ever agree to a Repub. president wielding such an unchecked power. Remember “King George”, “Walkerville”, and all the howls of dictatorship that Dems make whenever a Republican is in power?

TheRightMan on July 30, 2011 at 1:44 PM

They should resolve … NOW – to vote against it. They should force the Dims and the Rino’s to eat that sandwich – and OWN IT.

And face the voters next year.

HondaV65 on July 30, 2011 at 1:20 PM

I agree that it’s time for conservatives/tea partiers to revolt and call out the Big Govt. junkies that are in both parties. Then even if those junkies force their increase with useless spending cuts through, it would nicely set up 2012 as another election of the outsiders versus the Establishment on both sides.

That is something I bet the American people can get behind!

TheRightMan on July 30, 2011 at 1:49 PM

Comment pages: 1 2