Third Way lauds fiscal commission chairs proposal, real Dems blast it

[Joanne98]

The corporatist wing of the Democratic party, in other words Third Way, thinks the plan to lower taxes on the rich and make everyone else hurt proposed by catfood commission chairs Bowles and Simpson is just peachy.

This is the first real leadership test for both parties in a divided capitol: will they embrace the Fiscal Commission recommendations, or cop out and pick the plan apart?

No plan will be perfect, but without a serious, long-term commitment to balance the budget, we’re going to stifle economic growth for decades and ultimately have to make draconian cuts in spending. Only by acting aggressively now do we avoid a budget doomsday.

An actual economist, however, begs to differ. Here's Paul Krugman:

OK, let’s say goodbye to the deficit commission. If you’re sincerely worried about the US fiscal future — and there’s good reason to be — you don’t propose a plan that involves large cuts in income taxes. Even if those cuts are offset by supposed elimination of tax breaks elsewhere, balancing the budget is hard enough without giving out a lot of goodies — goodies that fairly obviously, even without having the details, would go largely to the very affluent.

I mean, what’s this about? There is no — zero — evidence that income taxes at current rates are an important drag on growth.

Oh, and they’re talking about raising the retirement age, because people live longer — except that the people who really depend on Social Security, those in the bottom half of the distribution, aren’t living much longer. So you’re going to tell janitors to work until they’re 70 because lawyers are living longer than ever.

The recommendations of the chairs--from the big tax cuts to the decimating of the federal workforce--just don't fit the reality of the current economy with high unemployment, the loss of equity of so many retirees and near retirees in the one major asset most held--their houses, and the wage stagnation that has resulted in the great income equality in the nation. That's not even addressing the costs of two wars and the Bush tax cuts.

Liberal members of Congress and AFL-CIO President Richard Trumka address these realities in their statements in reaction to the proposal.

http://www.dailykos.com/storyonly/2010/11/10/919451/-Third-Way-lauds-fiscal-commission-chairs-proposal,-real-Dems-blast-it

[LiberalFighter]

1. How does reducing the federal workforce by 10% balance the budget?

Along with reducing taxes?

If they reduce the federal workforce by 10% where will those workers find a job and pay taxes? Did they consider that those workers might not find a job or it will be a job that pays less and therefore either don't pay anymore taxes or less taxes?

[Me.]

2. Wny Doesn't The Third Way Just Go Away

[Dragonfli]

3. Because they are Republicans that the Republican party doesn't want

Our party is being taken over by these sort of Republicans, one is even in the white house.
They are technically Democrats (because they claim to be) but the Ideology is Republican make no mistake about it.

[FrenchieCat]

4. Obama isn't a Republican......

or anything close to it, no matter how many times you say it.....

[Dragonfli]

6. His actions speak for themselves

I did say he was technically a Democrat and he is, all you have to do is register as one.

[FrenchieCat]

7. Psych-Op!

That's what I think of your statement!

[David__77]

5. Obama: Abolish the commission now!

To do otherwise would be absolutely unpardonable.