I t's the Tea Party downgrade because of their rigid stance against raising ANY revenue.They keep insisting that we have only a spending problem not a revenue shortfall.We have both.The fundamental underlying basis of the right's primary arguments are fallacious;that they are heavily over taxed and over regulated.Taxes on corporations and the wealthy are at a 35 year low.The regulatory regime has been badly weakened since Reagan,especially under Bush 2,and staffed with lackeys for industry instead of watchdogs for the public.The effective tax rates on corporations are among the lowest of OECD countries ,not the highest as repubs and libertarians consistently LIE about.Their baseline for what taxes SHOULD be is purely ideological pie in the sky ,not based on our previous rates ,the rates in other countries ,or what is needed to meet 1st world standards for a safety net,ours is the weakest safety net among advanced nations not the most generous.They bitch about the percentage of revenues now paid by the highest income bracket ,but conveniently ignore the outrageous amount of wealth they have consolidated and now control.
We do need to cut spending in some areas,but you need to do it gradually not pull the rug out from under the lower classes while simultaneously giving more tax cuts to the wealthiest.Allowing the Bush tax cuts to expire,like they were supposed to all along ,would ease these shortfalls significantly.I thought i:d get crucified to suggest a 25% reduction in defense spending ,some are suggesting even more,GOOD.
Mr. C ,
S and P 's statement specifically cited republican intransigence and their skepticism that the Bush tax cuts will be allowed to expire,as needed, in this political climate.I do agree with Blutzki in that ,why the hell are we allowing unelected/unaccountable credit ratings agencies with shitty track records themselves to dictate economic policy.The debt ceiling itself is unnecessary and was routinely passed in past administrations numerous times.Drawing this line in the sand now is more partisan politics than pragmatism.We do need to address these issues in the long term,hopefully based on facts not supply side dogma.Tax cuts do not raise more revenue or create jobs.You need only to fact check Clinton's tax policies and job creation record vs. Bush's to prove that. Mr . C the overwhelming majority of the debt came from repubs not Obama,again fact checking might help.