Everything You Need to Know About the Debt Deal

Ben Johnson, The White House Watch

GOP 2012 Contenders (Except Huntsman) Oppose Debt Deal, Blame Obama – CBS News.

Michele Bachmann: If We Pass Debt Deal, “We Embrace Being Greece” — CNSNews.com.

Ron Paul “Strongly Against” Debt Deal – The Daily Caller.

Tim Pawlenty: Debt Deal “Nothing to Celebrate” – Politico.

Mitt Romney Rejects Debt Deal, Says It Could Lead to Higher Taxes – The Huffington Post.

Rick Perry Opposes the Deal – Politico

Gary Johnson, Deal Just “Kicking the Can Down the Road”.

Rick Santorum Opposes Deal, Says Obama “Never Led” – WQAD.com.

Newt Gingrich (Votes Present But) Says Debt Deal “Is Not a Solution” – The Daily Caller.

Rep. Jason Chaffetz a No Vote on Debt Deal; Sen. Mike Lee likely no – The Daily Herald.

Rep. Justin Amash Likely to Vote No – The Grand Rapids Press.

Debt Ceiling Deal Guts Defense Spending to Pay for Politics – Kim Holmes, Heritage Foundation.

President’s Debt Ceiling Agreement A Raw Deal for National Security – James J. Carafano, Heritage Foundation.

Even the Fakery is Fake: Joint Committee is Not Required to Recommend $1.5 Trillion in Deficit Reduction – David S. Addington, Heritage Foundation.

Budget Deal Doesn’t Cut Spending – Chris Edwards, Cato Institute.

Yes, There’s a Real Threat of Higher Taxes – Daniel Mitchell, Cato Institute.

Oh yeah, The Progressive Caucus and Black Caucus Oppose the Deal, Too – Raw Story.

Is Obama Willing to Cut Anything?

Dr. Mark W. Hendrickson, FloydReports.com

Some have called August 2 “Financial D-Day.” That is the date, according to Treasury Secretary Geithner, by which either Congress raises the debt ceiling or some government disbursements will cease.

Multiple proposals have been floated for budgetary reforms to be made in exchange for raising the debt ceiling. A partial list includes: Rep. Paul Ryan’s (R-WI) plan to add $4.4 trillion less to the national debt than current trends project; the GOP “Cut, Cap, and Balance” plan, which aims for $6 trillion of future spending cuts; and the so-called “Gang of Six” Plan that proposes $3.7 trillion less debt than now projected.

Whatever compromise is eventually adopted, you should be aware that the national debt will continue to grow and that the vast majority of promised spending cuts will be scheduled for after the next election, when those promises can easily be forgotten. None of the proposed reforms would reduce debt; they would merely increase it less than now planned.

Also, notice how fishy the numbers seem to be. For example, the press release for the GOP “Cut, Cap, and Balance” stipulated $111 billion of spending cuts in Fiscal Year 2012 and to cut next year’s projected $1.1-trillion deficit in half. This is the best they can do?

Democrats resist spending cuts, but massive cuts are imperative. Last year, the U.S. Treasury incurred $3.3 trillion of new debt to finance the government’s on-budget and off-budget spending. This $3.3-trillion deficit cannot be closed with taxes. The total income of Americans above the $250,000 threshold that President Obama uses to designate “rich Americans” amounts to….

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Cartoon of the Day: Obama’s Idea of Compromise

Obama Promises “Job-Killing Tax Increases” After 2012, Says Job Losses Prove Stimulus Worked (Videos)

Ben Johnson, The White House Watch

If you were regularly described as one of the most “brilliant” leaders in our nation’s history and were poised to launch a 16-month-long crusade to convince the nation to re-elect you, how would you sell your dismal economic record? Barack Obama gave his answer in a press conference yesterday, when he promised to deliver “massive, job-killing tax increases” and claimed a 9.2 percent unemployment rate proves he was right all along and Americans should be grateful.

Obama’s plans for the nation include more redistribution of (borrowed, Chinese) wealth, financed by $1 trillion in tax increases. Even Obama understands the likely impact of this move. In 2009, he told MSNBC’s Chuck Todd, “You don’t raise taxes in a recession,” and during the lame duck session of Congress he called extending the Bush tax cuts “an essential step on the road to recovery.” In Monday’s press conference, he admitted:

So, when you hear folks saying, “Well, the president shouldn’t want massive job killing tax increases when the economy is this weak.” Nobody’s looking to raise taxes right now. We’re talking about potentially 2013 and the out years.

In other words, he promised he will wait until he is safely re-elected and beyond the reach of the people (except for impeachment), then destroy the economy. Obama ’12!

(Story continues after video.)

Only the most naive believe these tax hikes will only touch the “millionaires and billionaires” Obama constantly inveighs against. The Associated Press noted yesterday, “Proposals under consideration include raising taxes on small business owners and potentially low- and middle-income families.” After all, the wealthiest Americans are already paying a disproportionate percentage of income taxes. Patrick Tyrrell of the Foundry blog writes that the IRS estimated as of “2008, the top 25 percent of income earners—those earning $67,280 or more—pay 86.34 percent of the income taxes, yet earn only 67.38 percent of all income in the U.S.” If Obama is re-elected, he has told American you can expect unemployment to skyrocket.

Obama then added an odd claim: that the discouraging job reports of Recovery Summer 2.0 prove his stimulus plan worked. He said….

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Will Obama Go Fascist on the Debt Ceiling?

Ben Johnson, The White House Watch

Barack Obama has sometimes been fond of branding his Republican foes “hostage-takers,” but officials in his administration have found a new hostage in their negotiations over raising the debt ceiling: the U.S. Constitution. The president’s advisers and several “unbiased” media outlets are suggesting if Congress refuses to raise the debt ceiling, Barack Obama can force the nation to continue borrowing money. The Founding Fathers required all expenditures originate in the House of Representatives, but Obama officials are wrapping his actions in the 14th Amendment. For the first time in living memory, the president is threatening to commit an impeachable offense if he does not get his way.

CBS News has reported the debt ceiling impasse leaves “the option of a congressional end-run by President Obama a possibility.” Reporter Whit Johnson said, “The stalemate in Washington has some asking if President Obama could simply bypass Congress and order the Treasury to keep borrowing.” Obama or his spokesman Jay Carney has been asked twice about the possibility and, despite an incredibly misleading headline from the Associated Press, neither rejected the possibility. (Carney merely said, “I don’t think that I want to get into speculation about what might happen if something does or doesn’t happen”; Obama replied, “I don’t think we should even get to the constitutional issue.”) MSNBC’s Powerwall dared the president to carry it out, claiming it would be smart politically.

Treasury Secretary Timothy Geithner, who has never shown much regard for financial laws, claims the president has this power under the Fourteenth Amendment. The fourth clause states:

The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.

Geither made his comments at….

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