The First Childish Negotiating Tactic Award
I would like to offer my first "Childish Negotiating Tactic Award" to Eric Cantor and Jon Kyl for their impressive performance in budget negotiations with Joe Biden this week. There's something to standing up for principal but when your "no tax" stance bring the country closer to financial armageddon I have to wonder if sanity has escaped Washington for good.
It seems to me that the deficit commission Obama set up last year concluded that you can't have anything close to a balanced budget without some form of increased tax revenue. I'm OK with the tax cuts expiring for everyone but the fact of the matter is the wealthy will have to pay a higher rate at the very least.
According to the CBO in 2010 tax revenues as a percentage of GDP were 14.9%, far below the long-term trend of ~19%-20%. My fancy calculator tells me that a 20% rate of tax revenue to GDP would have resulted in a ~$500 billion deficit instead of $1.3 trillion. Sounds good to me.
The big question I have is "Why would ANYTHING be off the table in the deficit debate?" We should be talking about taxes, Medicare, Medicaid, defense, discretionary spending, and anything else we spend money on. I would be peeved if the Democrats said Medicaid was off the table and I'm equally as peeved that Republicans have taken the stance that taxes are off the table. EVERYTHING IS ON THE TABLE.
What do you think Fools?