DAD: A follow up to our discussion of Obama's tax deal with the Republicans and the Democrats' reaction: Last week in the Senate Senator Mary Landreau, Democrat of Louisiana, pounded her fist on her desk and vowed that she would not support the deal because she was "morally outraged" that the President would agree to extend tax cuts for the wealthy. This is the same Senator Landreau who, in 2001, voted in favor of those tax cuts when they were first proposed by George W. Bush. Either she has a short memory or hopes that the voters have a short memory.

DAVE: That letter to the editor that I sent you suggested that the tax cuts for everyone be allowed to expire. That's a viewpoint that I had not previously heard.

DAD: The idea of tax cuts for everyone expiring is now the position of the most liberal Democrats so that they can blame the Republicans when everyone gets angry about their taxes going up on January 1. Obama, however, wants to give tax breaks to those making under $250,000 (the middle and working classes). The Republicans are holding those folks hostage to get tax breaks for the wealthy. While the tax cuts for the lower group may get through the House of Representatives in the lame duck session, they would have no chance once the Republicans gain control in January. The Senate Republicans can block the limited tax cuts even now with the filibuster threat. So the only chance of getting tax cuts for the middle and working classes so that there will be no gap after January 1 is to pass Obama's compromise.

DAVE: I understand the many benefits to the non-wealthy of the tax cuts, but it really would be better for the deficit and long-term growth and stability if the tax cuts expired. As you have said many times, to not have raised taxes during the Bush wars was lunacy. Well, maybe now we have to pay for those wars. My fear is that no matter which route the government takes, it will not be enough to stimulate the economy. These are all short-term "wishful thinking" strategies that both parties are using to get re-elected.

DAD: You are right, David. [From Dave: my mother and father are among the handful of people on this planet who call me "David."] But the middle name of the Tea Party and of the GOP is "lunacy." The people who appeared to be most angry about the ballooning deficit and who vowed to attack it are the very people who put us in this situation in the first place. There are only three ways to balance the budget and pay off the debt: (1) raise taxes; (2) cut expenditures; or (3) a combination of the first two. The Republicans who say they want to eliminate the deficit have said they absolutely refuse to raise taxes. That leaves only one choice: cut expenditures. To achieve their goal you would have to heavily cut defense spending (unlikely), cut aid to the poor (which they are only too willing to do), cut medicare (they would love to eliminate it entirely, but senior citizens won't allow that to happen), cut social security (that is highly unlikely as well). The Republicans, who say they want to cut spending to attack the deficit, have named the new chairman of the House Appropriations Committee beginning in January. That is the committee that oversees all government spending. I do not remember the man's name, but he is from Kentucky and he is known around Capitol Hill as the King of Pork. He has obtained millions of dollars for an airport in his hometown (which has flights in and out only two days a week). He has obtained millions of dollars for a "charitable" organization run by his daughter. Finally, he has initiated more earmarks than anyone else in the House. Good luck on his being a good fiscal watchdog.

DAD: Since I wrote to you about the Kentucky congressman who is known as the "King of Pork" I have learned his name: Hal Rogers. So far this year he has secured 52 earmarks worth $92,900,000 for his district, which is known on Capitol Hill as "Mr. Rogers' Neighborhood." The charitable organization run by his daughter is the Cheetah Conservation Fund, which is focused on saving Cheetahs in the wild, mostly in Africa. A nice resume for a fiscal watchdog!


From Dave: FYI.

http://www.cheetah.org/