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Senate kills Boehner debt-limit bill

Harry Reid has it tabled 2 hours after the Senate receives it.

President Obama calls again for a compromise.

Yo, dawg. That was the compromise.

If the GOP doesn’t want to lose its base, they’d better hold the line.

I think this is a bigger test for the Republican party than it is for the Dems and Obama. It’s damn clear where they stand…but the jury’s still out on the Conservatives in office.

UPDATE: Democrats enforce filibuster against their own debt bill

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Comments

  • Matthew Jacobs says:

    You can’t blame the Senate Dems for being what they are with their vote to table the House Plan. The Republican Senators who voted to table the plan well I HAVE A BONE TO PICK WITH THEM.
    Graham R-SC
    Paul R- KY
    Lugar R-In
    Vitter R-LA
    DeMint R-SC

    • Murdoc says:

      Agreed. Though I don’t think anyone is surprised by Lugar. What an embarrassment. He’s up for re-election in 12 and I hope Indiana does something about him.

  • Sam-hec says:

    Murdoc,
    did this ‘compromise’ include eliminating tax loopholes on those wealthy corporations who essentially pay nothing in taxes?

    If not, then it was never a compromise.

    • Murdoc says:

      I think you mean ‘never a compromise’ on that point.

      The thing about compromises is that you have to compromise on some things.

      • Sam-hec says:

        Well it looks like the Dems are compromising by going with an awful lot of cuts. Very politically painful cuts.

        It does not look like the Republicans are willing to match that pain on their side be eliminating enough of the tax loopholes for the wealthy corpos. I don’t see any deal happening until this occurs.

        Given the hardened stances, prepare for higher interest rates all around, and vastly reduced services from the government as they figure out which bills to default on.

        • 11 Bravo says:

          I sure as heck hope we get higher interest rates. The savers of this nation are getting ripped off with current rates effectively near zero.

          • Sam-hec says:

            @11 Bravo
            High interest rates will increase the cost of starting new businesses and projects. Even if one such entrepreneur has cash, the indirect hit on credit ratings will affect insurance cost considerations. This will increase costs to consumers …this means you.

            WRT Illegals, the benefits are dubious. Those immigrants also purchased goods and services, supporting local businesses and adding to the local tax base. Lose the one, lose the other. We also lose their skill sets; who want’s to learn to work in the hot sun? (not me)

  • Murdoc says:

    and vastly reduced services from the government as they figure out which bills to default on.

    Some think that’s a bug and others think it’s a feature.

    • Sam-hec says:

      It would be a ‘feature’ which would do nothing to improve the economy for job seekers. Corporations ‘can’ hire the unemployed, but in a recession usually choose not too. Governments can get around that and hire people. Reducing gov’t services will put more people (ex government workers) on the street and worsen the recession.

      Going loggerheads over the debt limit makes for great political theater, but that is all. Neither Obama nor the the Tea Party emerged just so politicians could engage in endless grandstanding. Once again…’it’s the economy stupid’.

      • 11 Bravo says:

        Reduced government services putting more people on the street is not necessarily bad. According to this article from Sacremento, illegals are starting to head home and self-deport. Though not a huge trend yet, less services for these folks along with more Americans looking for work should accelerate this trend which would be a net positive for the nation.

  • James says:

    “loopholes” are in the tax code on purpose. They are designed to foster some sort of action on the part of a corporation just like they do for individuals. So a corporation pays zero tax for doing exactly what the congress wants them to do. Invest in new plants, perform research and development, hire minorities, hire in location X and so one. Just like we as individuals get our mortgage interest deductions, deductions for giving to charity and so.

    When you tinker with tax codes to generate a desired social outcome you create distortions. Such as GE paying no taxes. Personally, I think we should do away with current tax code and replace it with a 5 page tax code of simple flat tax rates without deductions of any type. Such a system would do more for our economy then any stimulus plan congress could ever devise.

    • Nicholas says:

      My understanding is that while the GE shell corporation pays no taxes the subsidiaries do. So it’s an artifact of the way they have structured their business (presumably for liability protection or some similar reason).

      I don’t know for sure but it’s worth looking into the truth of this matter. I don’t see how a profitable company can have enough offsets to avoid paying tax.

    • Sam-hec says:

      @James
      One loophole I would support is one given for companies hiring previously unemployed workers into above average fulltime jobs.

      Other than that and for simplicity’s sake, I would suggest a minimum corporate tax rate, such that no tax break/loop hole could breach; and lower the upper tax rates at the same time. Much of the ire for corporations is that many are paying nothing at all; and this is regarded as being fundamentally unfair to the rest of who do.

      • James says:

        Sam-hec
        That is the problem. Sure everyone would support a tax break for hiring the unemployed. Then let’s expand it… Tax breaks for hiring people in chronically unemployed area such as inner urban area. We can call them “empowerment zones”. Then what about R&D? You need to win the future! Taken individually most tax loopholes have a logical purpose that most people would support. Tax breaks for supporting charities, who could be against that…

        Using taxes to support social goals is what led us to this mess. If the government wants help the unemployed, then they should make a program to help the unemployed. A business, will not, does not hire on the basis of a tax credit. Sure they will they will take advantage of a credit when presented, but if you do not have the demand / need for the employee no credit will work.

        What GE does is what a lot of large corporations do. You funnel the profits from one company to another company that has losses and you only realize your profits in the lowest tax area / country possible. It’s all legal and caused by a distorted tax system. A flat tax system would eliminate the paper chase for tax shelters and have businesses focus on business not tax management.

        • Sam-Hec says:

          I agree, though I would use a flatish tax rate of 1-5%. And there is the issue of tax havens and abstract ‘properties’ (copyrights, patents etc). But yeah, flatter is better. Maybe flat is best.

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