Debt Ceiling Primer

Make no mistake – we are not done with the ‘tax’ issue.  Obama is already back for more.  Still seeking balance I guess.  A reminder,

  1. The Democrats only talk about the debt as a means to an end for tax increases.  No other reason.  They don’t see it as a problem.  They see it as an opportunity
  2. The Democrats are NOT talking about how to grow the economy.  No where in this conversation is any mention of pro growth economic policies.  They don’t care about making the pie bigger – they simply want to redistribute the existing share and transform America into a socialist state
  3. According to Democrats, the only thing we can’t afford is letting you keep your money.  NO SPENDING ever has a price tag that is unaffordable.  Only tax cuts or lack of tax increases.
  4. Obama has no interest in negotiating – there is no compromise.  Only capitulation and conquering

Finally,

  • Taxes are not Revenue – they are forcibly confiscated funds
  • Letting you KEEP YOUR money is not a cost. 
  • SPENDING your money is a COST.
  • BORROWING, paying interest and spending our children’s money is Generational Theft

Some additional Reading:

http://www.humanevents.com/2013/01/08/norquist-fight-against-president-obamas-overspending-is-winnable/

Three virtuous “fiscal cliffs”

There are now the three virtuous “fiscal cliffs.” First, the sequester. If Congress does nothing, unless the House, Senate, and President Obama agree on an alternative, there is an automatic sequester of $1.2 trillion over the next 10 years. One hundred billion dollars in spending cuts a year—automatically. House Republicans have already offered an alternative savings package of the same amount that shifts the cuts from defense to other areas.

The second virtuous cliff is the debt ceiling Obama is spending—again—at a rate that runs up more than $1 trillion in deficits each year. He must come back hat in hand to ask for a debt ceiling increase. The “Boehner rule” first applied with great effect in 2011 requires a dollar-for-dollar savings to “pay” for any debt ceiling hike. Obama wants/needs $1 trillion dollars in debt ceiling—so, he needs to come up with $1 trillion in reduced spending. Or not increase in the debt.

In 2011, conservatives won a $2.5 trillion spending cut in return for the higher debt ceiling.

The third lever for conservatives in the fight to limit federal spending is the fact that the Democrats in the Senate no longer do budgets. It is too embarrassing to write and vote on budgets that clearly run up trillions in debt. So our federal government operates on a series of “continuing resolutions” that allow money to be spent for a month or six months or a year.

Now Republicans in the House can offer Obama another month of “allowance” in return for actual cuts in spending. This worked in early 2011 and was abandoned as a strategy only because the slow pace of progress frustrated them. Now Republicans understand that slow progress is the only road to limiting the damage Obama’s spending is doing. There is no partner available for a grand bargain. Obama does not wish to reform entitlements or end his Chicago style “pay to play,” “pork for the boys” tax and spend policies.

Three levers to control spending. This time they are in our hands.

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