Bipartisan resolution on taxes reached. On to spending!

[SniperFire]

Owebama, who screamed and ran off to Hawaii vowing never ever never ever to negotiate again, will learn that a bipartisan solution to our spending problem must be delivered to America just like the bipartisan solution to our revenues were agreed upon by both sides last week.

America wants both.

McConnell expresses it clearly:

“Over the next two months they need to deliver the same kind of bipartisan resolution to the spending problem we have now achieved on revenue — before the 11th hour,” wrote McConnell.'

In Fiscal Wars No Negotiation Is a Negotiating Tactic - ABC News

Barry needs to get over his butthurt. The Republicans' did indeed enjoy a victory by protecting 99.4% of us from major tax hikes, but the sign-off on the program was BIPARTISAN.

We will do the same for spending cuts, with our without his actual input.

 

[waltky]

Granny says, "Dat's right - dem politicians'll spend dat tax money too...

CBO Director: Gov’t Spending Will Still Rise Even If Taxes Go Up
February 12, 2013 – In a colloquy with Sen. Jeff Sessions (R-Ala.), Congressional Budget Office Director Douglas Elmendorf explained that even if Congress balanced the budget with tax increases, the deficit would still continue to grow over the coming years because federal spending will outpace economic growth.

“If the tax increase is a fixed number of billions of dollars per year, then yes, the other factors [spending] would continue to push up the [deficit],” Elmendorf said during a Senate Budget Committee hearing on Tuesday. Elmendorf explained that in the CBO’s estimation, federal spending will outpace economic growth, meaning that even if Congress passed large tax increases to balance the budget, the revenue brought in from those tax increases could not keep up with federal spending.

“After the middle of this coming decade we show spending continuing to rise as a share of GDP,” he explained. In other words, the CBO estimates that federal spending will continue to grow faster than it projects the economy to grow, meaning that even if the government were to balance its budget by raising taxes, it would only be temporary because spending would grow faster than the government could take in more revenue, creating a permanently increasing deficit.

Sessions summed up the issue, saying that because federal revenue will never keep up with the growth in federal spending under current policies, the federal government faces a spending problem. “This is the reason I think it’s accurate to say that we have fundamentally a spending problem,” Sessions said. “Because if your revenue is not going to keep up with the spending because we’re on an automatic course through entitlements and other programs and all our desires to spend more, then you are not going to get the country on a sound path.”

Source

See also:

CBO: If Debt Not Addressed, Stimulus Spending Will be a ‘Drag’ on Future Economic Growth
February 12, 2013 – Congressional Budget Office Director Douglas Elmendorf said that unless Congress gets the federal budget under control, stimulus spending policies will be a “drag” on the economy in the future as the government struggles to pay the increased debt.

“If cuts in taxes or boosts in spending that stimulate the economy in the short run are not offset by some later tightening of fiscal policy, then the extra debt that is accumulated will be a drag in the long run,” Elmendorf told the Senate Budget Committee on Tuesday. Elmendorf said in his prepared testimony that if the government does not get a handle on its debt, then it could face serious problems in the futre.

“[F]ederal debt held by the public is projected to remain historically high relative to the size of the economy for the next decade. By 2023, if current laws remain in place, debt will equal 77 percent of GDP and be on an upward path, CBO projects,” he said in prepared testimony on Tuesday.

“Such high and rising debt would have serious negative consequences,” said Elmendorf. “When interest rates rose to more normal levels, federal spending on interest payments would increase substantially. Moreover, because federal borrowing reduces national saving, the capital stock would be smaller and total wages would be lower than they would be if the debt was reduced.”

Source

 

[francoHFW]

Pay the bills and stop screwing up the recovery with this brand new idea, debt ceiling raise disaster(fiscal cliff, sequestration). Absolute idiocy.