Republicans still sticking with their tax cuts are net revenue raisers. Really? They also love to point to Ronald Reagan’s 8 years as proof that tax cuts have a net benefit to federal finances. Simply not true. When looking at tax revenue as a share of gross domestic product, the total federal revenues fell from 19.6 percent of GDP in 1981 to 18.4 percent of GDP by 1989, indicating revenues were $66 billion lower in 1989 as a result of Reagan’s policies. This is not surprising given that no one in the Reagan administration ever claimed that his 1981tax cut would pay for itself or that it did. Reagan economists Bill Niskanen and Martin Anderson have written extensively on this oft-repeated myth. Conservative economist Lawrence Lindsey concluded that the behavioral and macroeconomic effects of the 1981 tax cut, resulting from both supply-side and demand-side effects, recouped about a third of the static revenue loss.
The World Bank is encouraging developing countries to buy insurance in the derivatives markets as a hedge against skyrocketing food prices. These hedges could be worth $4Billion. With JP Morgan in the middle of the deal, I have to say: (1) JP Morgan just paid a $154Million fine in a fraud case involving misleading investors in a CDO (derviatives) deal, (2) these swaps are no more like insurance than the CDS AIG sold in the mortgage-backed securities, let’s call them what they are: bets, and (3) you just poured gasoline on the food price volatility rocket as now speculators, the same guys who drive up fuel, cotton, etc., can jack up prices even further. Brilliant.
So Cantor, Boehner, and the rest of the no tax pledge Republicans have walked out of the Biden deficit reduction discussions. What happened to the “we’re going to have an adult conversation with the American people” line? Freaking children these Republicans, who once again proved that the GOP favors big business and millionaires. They walked out at the Democrats suggestion that those making over $500k/year should have a higher tax rate and that oil, gas, and ethanol subsidies should be eliminated.
Speaking of which, what’s up the GOP and its pledges? No new tax increases and now the anti-abortion pledge. Come to think of it, Pawlenty does look like Pinto and Christie could be Flounder from Animal House. “Is that a pledge pin on your uniform?” Santorum is Niedermeyer.
If the GOP is claiming that there fresh batch of Republican Governors’ falling approval ratings is due to the necessary tough fiscal medicine that they are enacting in their respective states, then how do you explain Democratic New York Governor Andrew Cuomo’s 68% approval rating in the face of similar cuts? That being said, I have no problem with New Jersey’s recent benefit cuts to state employees. These employees have had it too good for too long and they needed a reality check. I still think Christie is a douche.
It is time for President Obama to come out for same sex marriage. Share the misery.
How's this for a Felix and Oscar moment. Liberal Democrat Barney Frank and Libertarian Ron Paul both want to legalize marijuana. What's next: Ahmadinejad and Netanyahu come out for same sex marriage?