Smart. Sharp. Funny. Fearless.
Sunday, September 25, 2016

Last week’s big news in campaign policy was the Tax Policy Center’s white paper by Samuel Brown, William G. Gale, and Adam Looney, arguing that it is mathematically impossible for the Romney tax plan to meet its described goals. Ezra Klein has write-ups here and here, and James Pethokoukis has a contrary analysis here. Since Romney hasn’t released his plan, Brown, Gale, and Looney cleverly put together the best case scenario and crunch the numbers — and conclude they don’t work.

Romney’s plan has three goals: It starts by lowering tax rates by 20 percent. It then seeks to keep raising the same amount of tax revnues as before by removing tax expenditures, or the variety of exemptions, deductions, or credits in the tax code that function as government spending. As the wonks would say, it wants to “lower the rates and broaden the base.” However, and this will be crucial, it excludes expenditures related to investment income and savings from these cuts. Finally, it attempts to maintain the current level of progressivity by making sure that the top one percent pays no less in taxes and everyone else pays no more.

The Tax Policy Center analysis shows that it is impossible to do all three, however. To enact the Romney plan requires cutting taxes on the top one percent — and raising them on everyone else.

In order to better understand why Romney’s aims are incompatible,  we need a quick, back-of-the-envelope class and distrbutional analysis of how tax expenditures work in the United States. Tax expenditures are thought to be regressive, benefitting those with more resources. The general argument says that because tax expenditures are closely linked with employment compensation or spending, those who have jobs and get paid more or spend more will benefit more. Being able to pay less in taxes disproporationately benefits those who are better off — and also can take advantage of often complicated tax planning. A privatized welfare state administered through these coupon-like mechanisms, compared to public programs, involve less compulsory risk-pooling and more individualized risk-bearing, which also tend to benefit more affluent citizens.

Let’s take a closer look, using this great New York Times chart based on Tax Policy Center numbers, at who gains from different types of tax expenditures in the United States.

This chart examines five types of tax expenditures and the distributional consequences for each class. But it also shows which tax expenditures benefit three classes of people.

  • Romney’s tax plan is dead on arrival. The last thing the average American will vote for is the elimination of the mortgage deduction and college expenses. In fact, I doubt the main beneficiaries of Romney’s tax plan – the billionaires – will support his proposal. Believe it or not, many are likely to have a conscience.

    • tranz2deep

      If he makes it into office, the American people won’t *get* a vote.. just ideologues and fellow-travelers worshiping the top 1%. In short, Con-gress will rubberstamp it.

  • ram1020

    There cannot be an elimination of the mortgage deduction! On the other hand, the basic idea of keeping money in the general population instead of filtering and directing it through the government is a good idea. Money that goes to the government suffers a lot of shrinkage before returning to the public.

    • SaneJane

      Money originates with the government not the people. The government creates all dollars and I have often wondered why do we need to give dollars back to the government when they had all the dollars to begin with.

    • oldibtgdy

      The implicit argument here is that government is inherantly less efficient than private companies. In the case of medical expenditures, that’s simply not true. Before Bush (BB), private medical insurance and medicare were about the same when it came to efficiency. About 95% of premium revenues went to paying for medical services for both. By the end of Bush, however, medicare was still around 90-95%, while private insurance had slipped to around 67%. Under the watchful eye of Cheney and Bush, private insurance, out from under any regulation, had become way less efficient than the single-payor system administered by the government. This, by the way, is what Republicans really don’t like about “Obamacare”. It requires private insurance to be ONLY 10-15% less efficient than the government run, single payor system. This would adversely affect the private insurers’ profits, so, enlisting the support of their followers, “Obamacare” gets vilified for all the wrong reasons. But the fact remains. A well-regulated industry that the entire population needs (like healthcare) is not necessarily better when managed by private people out for profit. The government does a much better job at many of these things. Of course, the chief executive needs to make good appointments (and congress needs to pass those appointments). “Brownie” as head of FEMA is a great example of a terrible appointment that made the government look bad. It’s easy to make things look terrible. It’s hard to make them run well. Competence and interest. Two important ingredients. Money sometimes grows when it goes through the government filter compared with the private filter. Depends on the personnel involved.

  • bcarreiro

    When the chiefs run out of indians are they prepare to actually WORK!!!

    • tranz2deep

      No.

  • howa4x

    We always look at this in reverse meaning we argue taxes with out looking at our expenses, and priorites. For example we have 6000 bridges that need repair, and since everyone uses them we all should chip in,but it has to be done. Now lets look at our military. The cold war is over and we will proably not fight a land battle on the scale of Stalingrad,so why do we keep building tanks? Because it benefits a corporation so their taxes should be increased. The Navy is ok but who does it benefit most? The super rich since their assets are flung all over the world they should pay much more for that, plus they should pay substantially more for all the subsidies we give to corporations which is them anyway, in fact they should pay for all of them, or not take them. The 1% should pay the most for Bailouts of banks since they own them and why should the middle class pay for that giant mistake. So you get the idea. We really need to see who benefits the most from a paticular program or expenditure and tag that group with more of the cost. That way we can really see who benefits the most from the tax code and how much they are contributing to America.

    • I would not give the NAVY a free pass, why do we need 12 carrier battle groups to match the number of the rest of the world combined? The justification for such a large naval force becomes ridiculous when we consider that half of the world naval forces belong to our allies! I agree with you, however, in that we should first decide what we really need before we talk about taxes. We are, in effect, putting the cart in front of the horse. The largest outlays of the Federal government are Defense, Social Security, MEDICARE, MEDICAID, and interest on the debt. The rest would not make a dent in our annual deficits. Do people support the GOP plan to privatize Social Security, dismantle MEDICARE, and gut MEDICAID? If they do, their candidate is Mitt Romney and they might as well give the GOP a majority in the Senate; but they better be prepared to take Grandma in, and pay for her medical expenses, unless they are planning to roll in Sarah’s death panels and introduce euthanasia as a cost savings tool.

      • chisolm

        Nobody in the GOP has proposed taking any senior off Social Security or Medicare. Changing the system for younger people has been discussed and makes since unless you firmly believe government should take care of every citizen from cradle to grave. Do you recall which party began assessing income taxes on social security? Which party has already taken a half trillion dollars out of Medicare to pay for Obamacare?

        • Nobody, really? There has been a lot of talk about reducing benefits and privatizing. Changing the system for younger people might make SENSE and we should talk about it. Before we talk about it; we need some adults in Congress who value compromise and shared values. It would help if they understood fourth grade math too.

        • Changing the system for people 55 and younger would destroy SS and MEDICARE for everyone the moment that change is implemented. Who would pay the seniors that are already on SS and MEDICARE if the younger generations are no longer on the system and are contributing to a new system? The intent is to destroy all social programs and people have to be very naive not to see that. What is wrong with a government-run pension and healthcare system for seniors? Why can countries like Sweden, Norway, Denmark, Finland, Germany and so many others run such systems effectively and with the full support of the populace and ours are constantly being demonized and undermined? Neither SS nor MEDICARE are free, we pay for those programs throughout our professional lives and continue to pay MEDICARE fees after we retire. Insinuating they are some sort of welfare is completely off the mark.

          • chisolm

            What is wrong with a government-run pension and healthcare system for seniors? To begin with both systems are unsustainable and will collapse in the not to distant future. Face reality, we can’t continue to borrow or print money to meet our obligations. I agree that SS was not designed to be welfare, however the political hacks “borrowed” the funds and spent them. Predictably there is no fun,d only IOUs that are about to become due. Had SS been a semi-private program from the beginning people would be retiring with much more money and, more importantly security.

        • BTW, nobody has taken half trillion dollars out of MEDICARE, in fact, the Affordable Care Act will not be fully implemented until 2014. What President Obama suggested was using part of the 2003 MEDICARE Part D “reform” (read Trojan horse) to help pay for ACA, to the tune of $50B a year, since one of the ACA components involves the elimination of the MEDICARE doughnut hole, which costs some seniors about $2K a year. Most of the $50B is not money going to seniors, it is mostly subsidies to the pharma and insurance industries, who are already posting billions in profits.

        • Get your facts straight or don’t waste your time.

    • EchilReed

      very

    • EchilReed

      Very, very good analysis, as far as it goes. For improvement, you would just need to be a little more rigorous and consistent all the way through the analysis.

  • ObozoMustGo

    DISTRACTIONS………. DISTRACTIONS…………….. DISTRACTIONS……..
    [keep reading. I keep updating]

    Creation of nonsensical news by the useful idiots at The Memo and the Obozo campaign propaganda machine called “the media”. All of this designed to take our focus off of the failure of Obozo. Obozo the utter failure in Chief who cannot talk about his record so the useful idiots at The Memo try to distract us from what is really important in this election year… Obozo’s record of failure.

    BH Obozo has had a sum total of 1 (one) success. Ordering the killing of OBL. That’s it. There is nothing else in 4 years. Nothing. And even that isnt really as big a deal for him as it is for the soldiers who actually did the mission. But the narcissist-in-chief is always quick to claim credit for himself.

    Lets take a look at some of Obozo’s other “successes and accomplishments”…….

    1) Obozo comes into office $10T in debt. 3.5 years later, $16T in debt
    1A) Obozo is first President in American history to be so fiscally irresponsible that he and his DemocRAT Congress caused US Credit Rating to be cut. Nice accomplishment Mr. Obozo!!!
    1B) OBOZO HAS PRESIDED OVER AND DIRECTLY CAUSED, FOR THE FIRST TIME IN HISTORY, CANADIANS ARE NOW RICHER THAN AMERICANS.
    2) 2 years complete control of the government. NO budget as required by the Constitution. Still has no budget. The one budget he presented that was actually voted on by the Senate went down to defeat by a vote of 97 to 0. Nice work Mr. President!!! THAT IS an accomplishment!
    3) A new bankrupting entitlement program called Obozocare jammed through congress against the vast majority of Americans who were against it (and still are) and with the blessings of the idiot Nancy Piglosi who said “we have to pass the bill before we know what is in it”. Nice work, Mr. President!
    4) Persistent unemployment that has been the worst since the Great Depression, especially among blacks and young people. His administration keeps claiming unemployment is going down, but in reality, they manipulate the formula by reducing the # of jobs available. And then they claim that over 8% unemployment is good! Quite an accomplishment in propaganda, but not economics, Mr. President.
    5) Promises to close Gitmo…. instead, he spends $750K on a soccer field for terrorists. Don’t get me wrong, Gitmo should stay open. This is an example of how stupid and naive Obozo really is. Nice accomplishment, Mr. President!
    6) Gas prices are up 100%++ across the nation. And Obozo is so dumb he actually believes that increasing supply has no effect on prices… what an idiot! Blocking EVERY permit that has come before his administration and blocking pipelines that increase supplies does HAVE consequences, Mr. President. Gas prices are through the roof! Nice going Mr. President!
    7) Real inflation rates are close to 8% or higher. Who measures inflation without food and fuel??????? Obozo does! Another strong achievement in propaganda, Mr. President!

    [the following items 8 – 11 are about Obozo’s failed PUBLIC EQUITY business]
    8) SOLYNDRA!!!!!!!! need I say more? Nice job paying off your rich buddies who bundle campaign cash for you, Mr. President! You can probably count on some of those dollars coming back to you.
    9) SOLAR TRUST… another BILLION DOLLAR boondoggle in your attempt to play venture capitalist with taxpayer money that actually goes to your FAT CAT financier friends who are big donors. Nice money laundering accomplishment, Mr. President! Should I say more? OK.. I will…
    10) ECOTALITY – Another “green” Obozo investment disaster. Obozo gave them $115 MILLION. The SEC investigates fraud at the company. While that’s going on, Obozo gives them another $26 MILLION…. What an idiot! Nice accomplishment Mr. President!
    11) Fisker Automotive – yeah, that company that you gave $200MILLION to so they can build cars overseas, right? Great job creating jobs overseas, Mr. Obozo, you friggin clown!
    12) Fast and Furious!!!!! If this was a Republican Admin, all of you nutjobs that write on this web site would be going justifiably ballistic!! It would be the lead story on ABC, CBS, NBC, MSLSD, CNN, etc. etc.
    13) Same with the crook Jon Corzine. He steals $2B in client money, much of it farmers money, to cover his own bad bets. Then he gets to continue on raising money for Obozo like nothing ever happened. Where is Eric The Incompetent Holder? ……… crickets………. crickets……….. crickets………. Thought so!
    14) 88% of Americans say they are spending way more on groceries now than we were 4 years ago.
    15) 50% of Americans have had to give money to a relative at least once to help them get buy in the past 4 years.
    16) 47 MILLION Americans are on Food Stamps, and that number is growing quickly. In fact, Obozo has created more dependency than any other US President in history. Nice accomplishment, Mr. Obozo!
    17) Obozo was caught bribing Joe Sestak to NOT run against Specter. A clear felony. What is Eric “The Incompetent” Holder doing about it? Crickets….. crickets….. crickets……
    18) It has now come out that the Obozo had close ties with the New Black Panther Party and even marched with them at Selma in 2007. A few NBP thugs intimidate voters and the DoJ, after hearing from Obozo, decides to drop an open and shut, slam dunk case of voter intimidation which was CAUGHT ON TAPE!!! Hmmmm… why was that case dropped? Anyone care to venture a guess? Corruption from the thug-in-chief yet again.
    19) The “anti-war president” took troops in Afghanistan from 30K to 110K. The anti-war presiden that promised we’d be out of Afghanistan by July 2010. The anti war president that took a war where only 400 Americans died in 8 years under Bush, and now 1700 have died under Obozo’s “leadership” but which the media stays silent on that one. What happen to the nightly body counts on the news under Bush that seemed to have disappeared under Obozo?? Hmmmm… Nooooooo… they’re not in the tank! No way! You leftist freaks are hypocrites of the worst degree.

    I’ll continue to refocus the discussion on what is important and not these foolish smokescreens the left throws up to obfuscate Obozo’s true failure as a socialist in the White House.

    Have a nice day!

    “A free people ought not only be armed and disciplined, but they should have sufficient arms and ammunition to maintain a status of independence from any who might attempt to abuse them, which would include their own government.” – George Washington

    • tranz2deep

      You’re a lying parrot and I’m flagging this insult compost pile as offensive.

      Have a nice day.

      • ObozoMustGo

        tranz… I would agree. Obozo’s record is absolutely nothing short of offensive to America.

        What part of the debt, unemployment, inflation, money laundering “green” investments, Fast & Furious, and every other thing that I wrote is a lie?

        Have a nice day!

        • awakenaustin

          Pretty much all of it is a lie, just like your Washington quote. I called you on this earlier and you just blithely repeat it. Clearly you lack shame.
          Lie often enough maybe someone will believe you.
          You practice sophistry or live in an alternate reality. The only possible explanations.
          The pace of your language is a deranged rant delivered at high speed. One can almost hear you screaming on the page. I would suspect mental illness, but I suspect it is simply your desire to try to overwhelm becasue you are aware of the weakness of your positions.

          You should consider dispensing with the fatuous “have a nice day!” You don’t mean it and everyone knows you don’t. Save yourself the time and energy.

          • ObozoMustGo

            asleep… you just don’t like the truth about your messiah, Obozo, and how he is intentionally screwing America, the country he really hates.

            Have a nice day!

            Thomas Jefferson: “When the Government fears the people, there is Liberty.”

          • awakenaustin

            LIAR, LIAR PANTS ON FIRE. Wow, two days in a row. Another quote, another lie! NOT JEFFERSON’S QUOTE! The earliest time found in print 1914 – someone named John Basil-Barnhill! (A bit after Jefferson’s death.) Earliest attribution to Jefferson 1994! Not his quote. You are now 0 for 2. Keep swinging we need the grins.

            More evidence you pay absolutely no attention to facts. Are you now going to launch into some self-important and obviously overstated claim of how much you have studied Jefferson and how he should have said it because it is how he would have thought, if he only thought as you wish he did?

            Instead of trying to insult me or rile me up by calling me names or saying mean things about the President, try saying something mean about my mom. It is more your style and I hear it works on some folks. Who knows? You might get lucky.

            Oh, I am having a great day! How ‘bout you?

          • awakenaustin

            The Jefferson Quote is bogus also. You are just full of male bovine excrement. Try Bartlett’smaybe you can find a real quote there.

    • People are on food-stamp assistance because of Obama? Such comments are an indication of your lack of depth of understanding of the problem dumped upon the new leadership after Bush left office. There are more folks needing assistance because of the worst economic downturn in 80 years. Is that really so difficult to understand?

      • awakenaustin

        He has no desire to understand! It isn’t that he can’t, it is that he refuses to.

      • ObozoMustGo

        Lynda, Obozo IS The Food Stamp President. It’s now official. See the image attached. Click to enlarge.

        Have a nice day!

        Thomas Jefferson: “When the Government fears the people, there is Liberty.”

    • You’ve over used the canard that Obama has only accomplished one thing during his time in office. ..the killing of bin Laden. That is taking a rather negative and simplistic point of view my friend. Lets forget all of the political nonsense and remember that under Obama the Democrats have only had a filibuster-proof majority in the Senate for 14 weeks. Think about that for a moment or two and what that means to policy decisions. Lets take a real look at what was accomplished without much help from the other side of the ailse.

      1. Passed Health Care Reform.
      2. Passed the Stimulus
      3. Passed Wall Street Reform
      4. Ended the War in Iraq (just like Bush wanted as well)
      5. Began drawdonw of Afghanistan war
      6. Eliminated Osama bin Laden (You’ve got that one)
      7. Turned around auto industry in the US. Since the bottom in 2009 the industry has added over 100,000 jobs.
      8. Repealed Don’t Ask, Don’t Tell
      9. Helped the Libyan’s dump Gaddafi
      10. Reversed Bush torture policy
      11. Got banks out the student loan program
      12. Acheived new START Treaty
      13. New fuel efficiency standards to double fuel economy for auto/trust by 2025
      14. Increased suppoort to Veterans: Upped funding for the VA 16% in 2010 and 10% in 2011. Also added $78 billion in tuition assistance over a decade and tax credits to encourage businesses to hire veterans.
      15. Signed the Ledbetter Fair Pay Act
      16. Improved Food Safety System by boosting the budget by $1.4 billion to expand regulatory responsibilites to include the number of food inspections.
      17. Killed the F-22 fighter that cost $358 million each and has never flown a single combat mission Saved up to $4 billion
      18. Cut Reagan-era Star Wars budget, saving $1.4 billion in 2010
      19. Improved School nutrituion programs
      20. Expanded Health Coverage for Children. Signed 2009 CHIP act that covered an additonal 4 million kids paid for by a tax on tobacco products.

      There are many more additions of lesser importance, but there is no additonal point to be made. Of course Obama, by himself, did not craft the above anymore than he crafted your negative items. Keep it real my friend and have a nice day!

      • ObozoMustGo

        Lynda, forgive me but……. bwwwaaaaaaaaahahahahahahahahahahahaha!!!! bwaaaaahhhhahahahahahahahhahahahaha!!!! bwwwaaaaaaahhahahahahahahahaha!!! ROFLMAO!!!

        You list most of that crap as though they are good things! hehehehehehehehe

        This is like saying “I saw a bad accident with bodies all over the road and it was beautiful”…… uhhhhhh…. NOT!

        # 1, 2, 3 – disasters for Americans and American businesses. And the budget.
        #4 – It’s not actually over. We still have people there, but radical muzzies are taking a strong hold.
        #5 – MYTH – In 8 years under Bush, only 400 Americans died in Afghan. In 3.5 years under Obozo, he’s added over 70,000 troops and over 1700 Americans have died in his tenure. Further, he has proclaimed that the US will NOT leave before 2022.
        #6 – Obozo the narcissist claiming credit where none is really due him. A real leader would pass credit to the men that performed the mission. But it was on his watch, to be fair.
        #7 – MYTH – turned around the auto industry? bwwwaaaaahahahahahahahahahahaha!!! He did nothing of the sort. What he did do was completely illegal. He took 250 years of bankruptcy law and threw it out. He told the bondholders who hold first claim on the assets that they were getting screwed. He told the stockholders the same thing. He took $80 BILLION of taxpayer dollars and bought off his union buddies giving them cash and control over the company. That same company who employs 2/3 of it’s people overseas and proudly proclaims that 7 of 10 cars they make will be made overseas. How do you like your tax dollars going to build factories in China? Also, what about the 20,000 employees and retirees from Delphi that had their pensions stolen from them by Obozo and Tim Geitner? Go see the emails on TheBlaze dot com.
        #8 – absolutely stupid move which the vast majority of American’s are against.
        #9 – Stupid move. Gaddafi may have been a bad guy, but he was an ally that kept the radical Muslim Brotherhood under his thumb. Now, we are seeing the radical muzzies taking over and instituting shariah law which is the most oppressive living rules on planet earth. Same in Egypt and Tunisia. Obozo seems to like the Muslim Brotherhood, doesn’t he?
        #10 – Stupid, stupid, stupid! Water boarding is NOT torture and there were only 3 people they did it to, KSM being the primary beneficiary. The information we got out of him saved 10s of thousands of lives. Instead of waterboarding them, now Obozo kills them. That’s better than waterboarding them right? NOT! Now, our entire intelligence gathering aparatus has been completely derailed, thanks to Obozo. He is a functional moron! Standing on false platitudes and screwing America simultaneously.
        #11 – how stupid is this one? Banks are the ones that loan money, not the government. Another government takeover of private business function IS NOT a positive. Don’t be a fool to believe that it is.
        #12 – uhhhh… yeah…. give away our rights to missile defense and protection of our allies in Easter Europe. Piss off the allies, give in to the enemies. The Obozo way!
        #13 – Another example of government overreach ordering private business (save Government Motors) what they have to make and limiting my choices of what I can buy. Only a fool believes government control over industry is a good thing. Do you think that car companies, knowing some people want fuel efficient cars, would not build them?
        #14 – Any spending we do on troops or vets that served is part of our responsibilities for national defense. No problems with any of that. It is the primary role of government, after all.
        #15 – Uhhhh… that “fair pay” crap has been around a long, long time. Obozo’s just trying to grab accolades for nothing in an effort to woo the woman vote this November. There is NO functional application of this law which is just tinsel on the tree and nothing else.
        #16 – Improved food safety???? bwwwaaaaaaaaahahahahahahahahahahaha!!!! What a joke. What you call “improved” food safety, everyone else calls more oppressive bureaucrats telling school kids they can’t have bake sales or lemonaide stands. This is not improved food, this is creeping tyranny.
        #17 – STUPID, STUPID, STUPID… why would a President kill a program that gives America the most superior air fighters ever developed? If they didn’t kill it, and the thousands upon thousands of engineering and manufacturing jobs that depend on it, that plane would be kicking ass in the air right now and no one on earth could challenge our pilots. I know a just retired fighter pilot and he absolutely despises Obozo for killing that program. He called that jet the most advanced fighting machine ever developed by humans and a huge leap over our enemies in technology. Obozo is a moron for doing this. It is NOT an accomplishment.
        #18 – cutting missile defense technology IS NOT an accomplishment. It’s a fool that believes reducing our abilities to defend ourselves is a good thing.
        #19 – “Improved” school nutrition????? Bullsheet!!!! This is just another code- speak phrase for bureaucrats sticking their noses into little kids lunch boxes. Just another example of more and more and more oppressive government taking away the liberties of the people all for the excuse of “protecting them from themselves” because people are just too damned stupid to figure out what to eat. Right?
        #20 – MYTH!!!! There’s not a single kid in America that was ever denied either access to Medicaid or the state CHIP program or medical care. This is just more tinsel on the tree to make Obozo look good to the useful idiots that believe government involvement and control over their lives is a good thing. Huge wast of money and time, but it does buy votes from the stupid class that don’t understand anything.

        I hope this clarifies some things for you Lynda. Thanks for the great exchange.

        Have a great day!

        Thomas Jefferson: “When the Government fears the people, there is Liberty.”

    • Market Watch had an interesting analysis of the so-called Obama spending binge that never happened back in May 22, 2012. You should read it my friend. Here are couple of salient quotes from that piece.

      ‘Almost everyone believe that Obama has presided over a massive increase in federal spending, an ‘inferno’ of spending that threatens our jobs, out businesses and our children’s future. But it didnot happen. Althought there was a big stimulus bill under Obama, federal spending is rising at the slowest pace since Eisenhower stopped the Korean War. Even Hoover managed to increase spending more than Obama has.’

      Here are some facts from the Office of Management and Budget:
      ‘In 2009–the last fiscal year of Bush–federal spending rose by 17.9% from $2.98 trillion to $3.52 trillion. In fiscal 2010–the first budget under Obama–spending fell 1.8% to $3.46 trillion. In fiscal 2011–spending rose to $3.60 trillion. In fiscal 2012–spending is set to rise 0.7% to $3.63 trillion. Finally in 2013–the final budget of Obama’s 1st term–federal spending is on track to rise from $3.2 trillion to $3.58 trillion, an annualized increase of just 0.4%.’

      ‘There has been no huge increase in spending under the currect president…’
      Why do people think Obama has spent like a drunken sailor? It’s in part because of a fundamental misunderstanding of the federal budget.’

      ‘Like a relieft pitcher who comes into the game with the bases loaded, Obama came in with a budget in place that called for spending to increase by hundreds of billions of dollars in response to the worst economic and finalcial calamity in generations.’

      As the Market Watch piece has clearly shown the budget process and trend line was well in place before Obama took office. The policies that ran the budget off the rails were well in place before he took the oath and it is going to take realistic work between all parties to address the ‘real’ issues with the political agenda driven drivel put aside. Real solutions require thoughtful analysis and discussion. Polemics and constant negativitiy accomplish nothing of importance except more distractions from truth.

      Have a nice day!

      • ObozoMustGo

        Hi Lynda! I always enjoy your commentary, even if it’s written by the Obozo campaign propaganda machine and published in the tombs of the useful idiots in the state controlled media. You should have at least given credit to whomever in the Obozo campaign came up with that foolish analysis.

        Facts are facts: Obozo came into office on the promise that he could fix the problems. He has not done so. In fact, he’s made it worse. He controlled the congress outright for 2 years. He passed an $800 BILLION “stimulus” bill right off the bat promising us unemployment would not go over 8%. What happened to that promise? The $800 BILLION was then “baselined” into annual spending. That is Obozo’s spending, NOT Bush’s. Then, by NOT passing any formal budgets ON PURPOSE, he sets himself up to sell to the useful idiots that none of the spending is his. Only a moron actually believes that.

        Bush leaves, national debt at $10 TRILLION. Obozo runs the show, 3.5 years later national debt is nearly $16 TRILLION. It’s all going on under his watch. He owns it. But with Obozo, the buck always stops with someone else, doesn’t it?

        According to Obozo, his whole argument for reelection is this:

        “I deserve to be reelected because you elected me to fix problems. Well, I haven’t done it because it’s George Bush’s fault. I have failed. But because I failed, I deserve another chance. This time, I’ll get it right. Trust me”.

        What the hell kind of argument is that? It’s pathetic. If you have any sense of objectivity and honesty, you must admit that it is pathetic.

        This is why all he can do is attack Romney with outright lies. Like the latest ad of some useful idiot claiming that Romney murdered his wife. Even CNN slammed Obozo for such an outright lie. This is NOT the last of the Obozo lies to distract everyone from his disastrous record. Get ready for more of this crap. Anything to keep America from focusing on Obozo’s utter failure.

        Have a great day, my friend.

        Thomas Jefferson: “When the Government fears the people, there is Liberty.”

  • dhopfe

    Everything that Romney is working towards is all right there in the article. Now why do we want him in office? He would simply mess upf the economy more than what Obama would if you were to believe the Republicans.

  • 2hheels2

    People must see the facts, not that Faux News, hardline republicans can understand facts. The Faux news has done a great job of brainwashing them. Mitt is not the Solution but the Problem. Backed but Tea Party nuts nothing will get done in Washington.

  • ram1020

    I doubt the 67% number. Analysts covering the publically held insurance companies found the 80% threshhold in the law was already met by all but those who relied on commission paid independent agents. They also don’t need to hire 16,000 additional IRS agents with lifetime benefits to manage their collections. Private insurance companies are also better at preventing fraud, since they have a vested interest in controlling costs that the bureaucracy does not. I know of medical groups that do not accept Medicare/Medicaid because of the below market reimbursements. On the other hand, they do accept contract rates from BCBS that are substantially below the billed costs. I had the misfortune of spending most of June 2011 in a hospital. The bill from the hospital, which did not include doctor or lab charges, was over $119K. The BCBS negotiated rate was around $23K. I thought that kind of discounting only happened in jewelry stores, yet it was acceptable where government set levels at times are not. I also understand that the government’s inability to pay claims on a timely basis is a factor in prefering private insurance to government plans.

    Having said that, my comment was not specific to health care, but more about stimulating the economy. The free market would not build battery capacity that outstripped not only the demand, but the supply chain. The free market would propose building a second bridge from Detroit to Windsor to compete with the existing bridge and tunnel. If all people have more money in their pocket, they will decide what to buy which will in turn drive what companies make. The government can put their efforts into things like trade negotiations with China that might reduce or eliminate their tariffs on American cars. In that way, GM would not have to build plants in China, and we would have more people working to purchase what they already make.

    I agree that the personnel that run the government makes a big difference in the cost and effectiveness of government, and the last 12 years have been a testament to that.

  • Romney’s tax plan was never intended to make sense. That isn’t the goal. Teabaggers have no use for the truth. It only makes their heads hurt.

  • NutCutter

    A bad plan is better than what we have right now.

    • ObozoMustGo

      Amen to that, NutCutter. Amen to that.

      Have a nice day!

      Thomas Jefferson: “When the Government fears the people, there is Liberty.”

  • onedonewong

    Yep 2 Obama advisers and this is unbiased//PLeeeease

  • nesdave

    And this is better than unemployment? Supporting the upper class so they can start companys, hire the less educated, those who fear failure? Rediculous! I LIKE being unemployed! Where:s my check?

  • nesdave

    Since the TPC took this out of context, reworked the numbers from that vantage, the apparency is that it won’t work. This article is inconclusive without ALL the facts. Research TPC to get a more accurate perspective.