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DeMint Wants Tax Deal To Reduce The Deficit And Permanently Extend The Bush Tax Cuts

Posted in Main Blog (All Posts) on December 11th, 2010 5:37 am by HL

DeMint Wants Tax Deal To Reduce The Deficit And Permanently Extend The Bush Tax Cuts
While most Republicans on Capitol Hill have signaled support for the tax cut deal that their leadership brokered this week with President Obama, a small minority are opposed. Tea Party favorite Sen. Jim DeMint (R-SC) said he is against the deal because it includes a provision to extend unemployment benefits for 13 months. “We can’t […]

While most Republicans on Capitol Hill have signaled support for the tax cut deal that their leadership brokered this week with President Obama, a small minority are opposed. Tea Party favorite Sen. Jim DeMint (R-SC) said he is against the deal because it includes a provision to extend unemployment benefits for 13 months. “We can’t just keep paying people to stay at home,” he said.

Last night on Fox News, DeMint expounded on his concerns about the deal. “This is a perfect example of how we got 14 trillion in debt as a nation,” he said. But then his reasoning quickly turned contradictory. “Republicans have something we know is good for the country, such as extending these tax rates.” Later in the interview, DeMint solidified his inconsistency. He said the measure should not increase the deficit; but, in his very next breath, he added that the deal should make the tax cuts permanent:

DEMINT: Rather than support something that is a bad deal, I think I would put my bets on a republican house fixing this thing the second week in January, when we are back in session. But I’d like to get the deal done now. But it should, in my mind not increase the deficit. And we should at least have a vote on making these rates permanent. If we do that, I think it will really help the economy the way it is structured now, I think it could actually hurt the economy by expanding the deficit. So, you know, I’ve heard countless times since I’ve been in Congress, this is the best deal we can make but frankly, with $14 trillion in debt, this is not what we need to do. We need to fight a little bit harder before we let this thing go.

Watch it:

DeMint did not say that there should be spending cuts to offset the federal revenues lost from the tax cuts, which for the wealthy alone, account for more than $800 billion over the next 10 years. Cutting taxes will increase the deficit; they are mutually constitutive. Yet, DeMint thinks the tax deal should decrease the deficit and make the Bush-era tax cuts permanent.

While the President’s priorities in the deal would help about 150 million more Americans than the GOP’s priorities would (and at less cost per person), the congressional Joint Committee on Taxation said that the tax deal would cost the government $801.3 billion over 10 years. While the 13 month unemployment benefit extension would cost $56 billion, the JCT said the two year extension of the tax cuts would cost more than $400 billion.

This feels more than a bit surreal,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget, about the tax deal’s cost. “On the heels of the work of the White House Fiscal Commission last week on how to get control of the national debt, the White House and Members of Congress choose to engage in a negotiation that involves adding increasingly larger amounts to the debt? It’s utterly exasperating.”

Kasich: ?I Don?t Favor The Right To Strike Of Any Public Employee?
After securing electoral victory this November, Ohio Gov.-elect John Kasich quickly cast off many campaign-friendly principles to suit his preferred governing style. But his penchant for power consolidation took a remarkable turn yesterday when he unveiled his “personal philosophy” of contempt for worker’s rights at a press conference. Incensed over police and firefighter unions’ ability […]

After securing electoral victory this November, Ohio Gov.-elect John Kasich quickly cast off many campaign-friendly principles to suit his preferred governing style. But his penchant for power consolidation took a remarkable turn yesterday when he unveiled his “personal philosophy” of contempt for worker’s rights at a press conference. Incensed over police and firefighter unions’ ability to call in a neutral arbiter to resolve any labor disputes, Kasich told the Youngstown Vindicator’s Marc Kovak that he’d love to eliminate that policy, known as binding arbitration, and fire any police or firefighter who wants to strike:

KASICH: You think these local governments want to be stuck with binding arbitration? I’m serious…Our local governments don’t want that, it drives up the cost. So we’re looking for ways to mitigate any of the reductions in dollars that people get, you know, how do we make it easier for them to be able to cope with it?

QUESTION: On that last point, wasn’t binding arbitration adopted as a way to eliminate the possibility of public safety forces striking?

KASICH: Right, if they want to strike, they should be fired. You should not allow, look, you should have a change in the law…there are ways to say that you are not going to strike, and we’re going to continue negotiations without a binding arbitrator…Binding arbitration is not acceptable.[…]

QUESTION: Just to make sure I’m clear, you do not think police and fire emergency services should have the right to strike?

KASICH: I don’t favor the right to strike of any public employee, ok? That’s my personal philosophy. How practical that is to implement, uh you know, but my personal philosophy is I don’t like public employees striking. I mean, they’ve got good jobs, high pay, good benefits, a great retirement, what are they striking for?

Watch it:

Kasich’s “personal philosophy” displays a remarkable dismissal of both freedom and fact. Workers strike as a last resort to eliminate inequalities in bargaining power and address problems including unsafe working conditions, unfair wages, and benefits. Ohio safety forces, however, are prohibited from doing so. Because “unstable” labor relations between safety workers and the city spurred “constant strikes,” Ohio passed a collective bargaining law in 1983 that prohibited public safety workers from striking. But, to ensure workers still had an option, Ohio replaced the right to strike with a binding arbitration policy. So, not only would Kasich like to fire any police officer or firefighter for a right they are not given, he wants to eliminate the only remaining tool they have as a viable alternative.

In defending his dictatorial philosophy, Kasich flags the “cost” such contractually-obligated rights level on local governments. A peculiar defense given that Kasich is hell-bent on dismantling Ohio’s economy before he even takes office. In pledging to kill Ohio’s high-speed rail project, he single-handedly drove away $400 million in federal funds from the state. His plan to scrap an education funding formula for Ohio’s school may also very well cost Ohio another narrowly-won $400 million in “Race to the Top” federal funds. If that’s not enough, Kasich’s plan to eliminate both Ohio’s income tax — nearly half the state’s revenue — would cost about $8.3 billion next year alone. Add another $288.5 million for his apparent plans to eliminate Ohio’s estate tax and Kasich is looking to more than double Ohio’s $8 billion deficit.

But still, according to Kasich’s personal philosophy, it’s the unions that are the problem. (HT: Plunderbund)

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