Monday, April 18, 2011

Government and Taxes - #2824 - Government Handouts Exceed Taxes as Percentage of Average Household Income for 1st Time Since 1936 - Hot Air (2) VIDEO: Paul: I'll Raise the Debt Ceiling in Exchange for a Balanced Budget Amendment - CNN - Hot Air (3) As Debt Ceiling Vote Nears, the Pressure's on House Republican Freshmen - Washington Post


In 2008, American households crossed a line that had last been seen in the Great Depression. For the first time in 72 years, the percentage of average household income supplied by the government exceeded that of the taxes paid to the government. Despite the talk of recovery, the trend has actually accelerated ever since, according to James Cooper at The Fiscal Times: For the first time since the Great Depression, households are receiving more income from the government than they are paying the government in taxes. The combination of more cash from various programs, called transfer payments, and lower taxes has been a double-barreled boost to consumers’ buying power, while also blowing a hole in thedeficit. The 1930s offer a cautionary tale: The only other time government income support exceeded taxes paid was from 1931 to 1936. That trend reversed in 1936, after a recovery was underway, and the economy fell back into a second leg of recession during 1937 and 1938. As then, the pattern now reflects two factors: the severe depth of the 2007-09 recession and the massive fiscal policy response to it. The recession cut deeply into tax payments as more people lost their jobs, and it boosted payments for so-called automatic stabilizers, such as unemployment insurance, that ramp up payments as the economy turns down.  Read more........


Rand Paul: I'll Raise the Debt Ceiling in Exchange for a Balanced Budget Amendment - CNN - Hot Air - CNN’s Candy Crowley interviewed Sen. Rand Paul (R-KY) on the debt-ceiling increase and the issues of government spending, and got perhaps a mild surprise for an answer. Yes, Paul will vote to raise the debt ceiling — but only in exchange for a balanced-budget amendment that ends deficit spending in Washington. Furthermore, Paul rejects the notion that a compromise on the budget involves raising taxes. A compromise means that conservatives will have to give up some defense spending as liberals give up some social-policy spending. Under no circumstances should Washington be trusted with even more money:  Read more.........

As Debt Ceiling Vote Nears, the Pressure's on House Republican Freshmen - Washington  Post -They ran against debt. They swore and swore again that they’d cut up the nation’s credit card.  But now the 87 freshmen House Republicans are facing intense pressure from administration officials and even some natural allies on why they should — indeed, why they must — vote to allow the federal government to go even deeper into debt.  Financial industry executives, business leaders and Treasury Department officials are visiting the freshmen in their offices, briefing them in small groups and even cornering them at dinner parties. It’s all part of a behind-the-scenes campaign to school congressional newcomers in the economic stakes of Washington’s next big fiscal fight: over the debt ceiling.  The freshman class that gave Republicans the House majority will be a critical voting bloc in the looming clash over whether to raise the amount of money the government can borrow to keep it from defaulting on its loans.  “It is the big vote for all of us,” said Rep. James Lankford (R-Okla.). “I don’t think there’s been a week that I’ve been here where we’ve not had some kind of conversation with somebody dealing with debt ceiling issues.”  Read more.........

No comments:

Post a Comment