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Subscribe to RSSHouse Majority Leader Eric Cantor told reporters today that there may be some wiggle room in the debt-ceiling negotiations when it comes to closing tax loopholes. "If the president wants to talk loopholes, we'll be glad to talk loopholes," he explained. "We've said all along that preferences in the code aren't something that helps economic growth."
But he added that any loophole closure must be joined by offsetting tax cuts -- which Democrats could find unacceptable. (The reason: Adding further tax cuts to the mix doesn't end up reducing the deficit.)
"Increasing revenues paid by businesses and families, in this kind of economy especially, is counterintuitive," Cantor said. "Any discussion of loopholes must be accompanied by off-setting tax cuts. We are not for increasing revenue."
Cantor's comments came before Thursday's White House meeting with congressional leaders from both parties. President Obama has continued to call for a deal that includes an increase in revenues, while House Republicans have repeatedly said that new revenues would not pass the House.
Cantor claimed that a "blueprint" achieved during last month’s Biden talks could help guide negotiations in tomorrow's negotiations, claiming that based on the blueprint's framework he could "envision us proposing and accomplishing over $2 trillion dollars in savings." Cantor left those talks after Democrats in both the House and Senate continued to include revenue hikes in a prospective deal.
Cantor also shot back at Obama's claim that tax loopholes for such things as corporate jets were the reason why he left the Biden talks. "To hear the president come forward and indicate that those talks stopped or blew up over loopholes, it's just not the case," Cantor explained.
According to both Democratic and Republican aides familiar with the Biden talks, closing the corporate jet tax loophole would save about $3 billion dollars over 10 years. "In the context of over $2 trillion dollars in savings that the Biden talks could envision," Cantor said, "it's just not serious to say that we Republicans walked out over corporate jet loopholes."
The $2 trillion dollar number, according to Cantor, breaks down to this: "In the non-health care mandatory area, there is a potential for over $300 billion in savings; in the health care mandatory area, well over $400 billion in savings. The rest would be the discretionary piece plus interest savings," he says. "That is the basis upon which I believe we can build a deal that can deliver on the promise that we are going to finally start to change things around here."
The goal is to find a total of $2.4 trillion dollars in cuts by Aug. 2 to counteract a raise in the debt ceiling that would bring the United States past 2012, something that Cantor says he is doing reluctantly. "None of us feel we were elected to increase the nation's credit limit," he admitted.
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Teapublican's who still possess some common sense, realize the gravity of the game of 'chicken' these guys are playing with the global economy...
You can read Bartlett’s full peice, which includes a detailed legal analysis, here.
Bartlett has plenty of company. The same theory has been advanced by Sen. Chris Coons (D-DE) and hinted at by Treasury Secretary Tim Geithner.
http://thinkprogress.org/economy/2011/07/06/261384/republican-economist-obama-ignore-debt-limit/
Feisty, while the 14th Amendment argument looks like it would pass muster, I would think that would be the last thing Obama wants to do. If Bush were to try and do it, you and I would both be screaming bloody murder and if Obama does it, Republicans can use that as a club against the "tax and spend Democrats who feel they can run up unlimited debt." It would be a short term win but a strategic disaster for the Democrats if they did this.
Al, Feisty isn't listening. For one of the first times in recent history, it actually does appear like a compromise plan may be developing. Compromise from both sides in dealing with the deficit and hopefully the national debt is a good thing. It beats fighting each other, or beating each other bloody. They are working things out, but it still remains to be seen how much will be done.
Of course liberals like Feisty will still blame the republicans for the results. The republicans were obstructionists to Obama's desire to take the debt ceiling to new heights after spending $3.2 trillion. If Feisty had her way, the national debt would be increased to $30 Trillion without any hesitation for allowing Obama to spend all of it. She's never objected to any money Obama spends... I guess loyalty shows no bounds.
I hear what you're saying Al - thing is, Teapublican's will scream bloody murder NO MATTER what the President does or doesn't do...
This isn't about what's best for our country, this is about making sure he FAILS and takes the country along with it...
If he's talking about anything that's "revenue neutral," then NO, THANKS.
I'm very tired of hearing Republicans whine about how the corporate jet tax break issue is insignificant next to the budget as a whole.
So is NPR.
So is Planned Parenthood.
Note which of those things Republicans elect to cut and which they elect to whine about cutting.
By this shall they be known. Some of us are taking notes.
Did Obama put a special clause in his stimulus for NPR?
Sorry AM, too many rich liberals will not give up their tax breaks. They are the do as we say crowd.
You know like ALGORE. Don't have huge houses. But I have several. Don't ride in corporate jets. But I love my gulfstream. And for god's sake stop having so many kids. But I love all four of my own.
And please. Take all the notes you want, not like you would EVER vote for a republican.
But don't mind me - I am just bitter I never made it to being "leer-jet" rich. It was a goal for a long time.
Hi AM -
You are absotively right. They shouldn't be playing around with selective cuts. Cut a piece of everything.
The corporate jet crap is just a straw man argument, but we can't continue to give every entity that might be deserving a tax beak or a subsidy. Time to sink or swim.
Since the FED owns 1.6 trillion in US debt, essentially money the government owes itself, why not forgive that portion. Voila, now we would be under 13 trillion in debt.
Indy Lib - you are kidding right?
Do not attempt to peer behind the curtain that is the FED. House of cards my man. Talk about a giant ponzi scheme.
Nope, not kidding. What's wrong with forgiving our own debt? Seems like a win win to me.
Feisty,
Not that it matters to you, but Bartlett is an economist, not a Constitutional attorney, neither is Geithner ....... and if Obama thinks he can do this, it doesn't prove he is a Constitutional attorney - it proves he is a narcissist that thinks he is above everything and can get away with anything.
The government is required to make the debt payment. It can do that.
The government just has to cut something else it is not required to spend on.
Social Security, paying our service men and women? We can do that. That is just Obama scare tactics. He can cut other crap he doesn't want to cut.
How about cutting $800 million safari trips for the wife and kids? How about trimming the Air Force 1 costs? AF 1 to go 150 miles? What about the date nights to NY for he and Michelle where he just pays the government for the price of 2 - 1st class tickets?
All the foreign aid ..... billions to Brazil to drill .....billions to Venezeula for new refinieries ...... billions to this guy for natural gas projects - he doesn't spend it on us, he can't not give it away to others? Payments to the UN where we pay for most of the costs ..... payments to the IMF ...... on and on and on and on.
Do you really think the 14th trumps separation of powers? Like I said he can pay the debt payment, do you really think the 14th allows him to add to the deficit? Add to that debt.
I really do hope this putz of a POTUS does go for it.
About the actual article - closing tax loopholes and lowering taxing doesn't work, doesn't generate revenue?
Obama is a good example. Income of over $5 million, tax rate of 35% and he uses his loopholes to reduce his taxes to 27%.
Close the loophole (deductions) and drop his rate to 30%.
The government just netted an additional 3% in new revenue.
What is wrong with libs - such simple stuff?
It's the accounting that will kill you, Indy. Where do you assign the write-offs?
That's where the Devil may be hiding.
It isn't just an accounting trick away.
Indy Lib - it's an accountability issue.
Am - Vacation? THis is how you spend your vacation? Since you are not too busy I got some depositions and discovery that needs to be summarized. Come on, it'll be fun. Besides, you know the rule - you touch the file, you try the case.
Edit to my post above - Bruce Bartlett is NOT an constitutional scholar, rather, he was a TOP Economic Adviser to St. Regean and George H.W. Bush...
See how easy it is to split hairs? lol
What's really rich, is Bob 'bunch of numbers' calling ANYONE out as a narcissist! lol
Booby's so in LOVE with himself, that 'wad' in his pocket is nothing more than a travel mirror!
Small minds for small people, up to & including their 'junk'...
The FED working with the treasury is legally allowed to tear up the debt owned by the FED. Here is the link:
http://curiouscapitalist.blogs.time.com/2011/07/05/debt-ceiling-could-ron-pauls-plan-save-us-from-disaster-twice/
Later this week Cantor will join the "that's sort of not what I meant" chorus of the GOPTP.
What is counterproductive is increasing revenues by closing tax expenditure loopholes to big oil, etc., ONLY TO OFFSET them with decreased tax rates for those same businesses. How many Mom & Pop small businesses own corporate jets? How many Mom & Pop businesses make billions or even millions every quarter?
Republicans claim they are serious about debt reduction but the words spoken by Cantor, Boehner, McConnell and friends say they never were serious about reducing the deficit or the debt. Serious legislators and presidents consider all aspects of debt reduction, not just eliminating those things they never liked and further burdening the middle class by giving more to those who need it least. When tax cuts are this low (lowest in 60 years) and big businesses pay little to no taxes, any further tax cuts will NOT create jobs. The GOP is indeed stuck in ideological mud and bound by Grover Nordquist's Pledge, and they are not listening to the people nor are they doing what is best for the country. They only need look at the polls to see their words no longer ring true for voters beyond their rigid base.
The GOP has to check with their boss first: Norquist
Like the movie Rebel Without a Cause, Republicans are driving the nation toward a cliff over their narrow agenda of protecting the rich.
WOW!!! What liberation!!! I've never put a person on ignore before but I'll tell you what... It's wonderful! To have all of Feisty's comments collapsed is exhilerating! I won't have to read her garbage anymore or have it staring me in the face... I should have done this months ago! She never says anything of worth anyway so it's a delight to know I won't have to read or skim through the venom any longer.
Spanky: Vacation is ... well ... vacation. Even for us "home" girls. The LAST thing I want to do on vacation is to deal with pleadings and depositions, although that "touching the file" thing does have some appeal.
Pity I'm not your type. ;-)
Feisty,he does have the Authority!
Unfortunately,President Obama does'nt have the Cajones to pull that off!
I hate to say it that way, but the Truth is the Truth!
Hi Rick!
Long time no see! ;o)
I'm not so sure, I think the President right now, is handing these 'domestic terrorists' just enough rope...
When they ultimately REFUSE to compromise, and insist on the nuclear option, I think he'll step in and say ENOUGH IS ENOUGH and do what's necessary to prevent a default....
PS: Say hi to Miss Daisy!
True that Rick.
We all know exactly what he will do, which is vote "present."
I suppose we should be grateful that he is finally present.
Hey backatcha. Lotsa stuff going on & Mom's back for her summer stay.
Ya know President Obama still has my Vote, i'm just saying there comes a time when ya havta Stand for Something:
Or you'll Fall for Anything!
To Date, his Comprimising Skills are Impressive, however his backbone on Domestic stuff is Weak!
He's taken the Weak on Foreign Policy off the Table, now it's time to Stiffen his Spine on Domestic(Economical)Policy!
You Betcha!
Dang Spanky, you still hanging around here, I figured with gas prices falling, you'd be out Cruising the campuses looking for "Love"!
Just got back from Lake yesterday. All the college girls go after spring break. These here are full on river skank. They are nasty and sluttty and they know it. It is awesome.
Sadly them gas prices just jumped $.10 between yesterday and today. Loking to top $4.00 again by middle of July.
I would actually rather he stand up for something to, even if I totally disagree. At least then I'd know what to expect in the future. Just not his style I suspect.
President Obama stands up for a lot of things but he does it quietly. I do not agree with everything he does but I also recognize that even with 59 dems in the Senate from 09 thru 10, the GOP filibustered everything and in order to get anything done, he often had to agree with the disagreeable. If economic times were better, it would be much easier to draw a line in the sand, easier to tell the GOP to take a hike but in tough times, that would be reckless of any president.
With a GOP that wants him to fail and is doing everything it can to cause that failure, President Obama does what is necessary to keep the country from collapse. While that may not seem like a strong stand to those who think tough talk solves problems, it is doing what is necessary rather than what is politically popular with his base. Now, that takes courage but it is the kind of courage that goes unnoticed.
Contrary to campaign promises about creating jobs, Republicans have done nothing to create jobs since the 2010 election. Instead the GOP/TP have focused on making abortion illegal, gay rights, Sharia Law, etc. These type of "wedge" issues make fellow Americans the enemy, and unfortunately this works when there is a poor economy and people are fearful.
This Republican "strategery" is as ugly and destructive as it comes. Anyone supporting or even enabling Republicans are likewise ugly and destructive.
Republicans are not negotiating in good faith. I'm hoping the business community will knock some sense into them before the debt ceiling is reached. I realize my president will have an incredible amount of power once that debt ceiling is reached because he has to pay our debt according to the fourteenth amendment. Do Republicans really want to give the President that much line item veto power over spending? I welcome that. Their constituency will suffer for their inability to do their job.
The President does not have the authority under the 14th Amendment to raise the debt ceiling with out approval of congress. This is something that the administration pulled out of their rear end. I for one hope Obama tries it because it will cost him and the democrats dearly. We can not keep extending the debt ceiling and spending money we don't have. There is enough revenue to pay social security, military pay and the interest on debts, might not be enough to pay for all the new programs Obama wants, and maybe we should discontinue to putting money into his Heath Care Act until the courts decide it's fate. Remember it was Obama who said raising the debt ceiling showed a lack of leadership when he voted against it in 2006 or 2007. (Just another one of his flip flops).
Sound reasoning, sfcrt, but why did we do it seven times under GWB?
place your bets folks lets see who's the wise one are here...i say obama veto's the bill if it's all sending cuts....put your money were your mouth is. 83 cuts 17 tax increases or for you republicans revenue enchanments...he'll sign...
in 2007 we weren't in the bush recession depression....that's why obama said it was irresponsible...at least try when you badmouth obama....really changes the circumustances don't you think....dont' you think....lol
Interesting how the right, who bill themselves as the Constitutional purists, and who had the document read aloud on the floor of congess to prove it to themselves, don't seem to really understand it.
On the other hand, the President, who is a Constitutional scholar, does have a grasp of it. to the extent that he has stated his reluctance to use the 14th Amendment option.
But he does have the authority and he will use it if need be and it will reflect badly on the right. In several ways.
No way, no how.
LikeRick said above, he has neither the cajones nor the political will to actually take a stand like that.
Its that whole "from behind" part.
But hey isn't it great that the entire discussion is tea-party dominated. It's all about cuts and deficit reduction. I sure do not recall these being apart of Obama's campaign platform. Which just goes to show you - he really is a blank slate upon whom strong winds prevail.
Man, it must suck to have to be so damn passive. Maybe not for him, as that is just who and what he is, but for all those who voted from him thinking there might actually be some Hope or Change.
Spanky, you are mistakedly identifying as passivity the fact that Obama is being an adult about this.
Just as you are mistakedly identifying as tea party dominance of the conversation the fact that they are behaving like spoiled children.
So, one "out there" professor comes up with a theory, and MSNBC jumps on it?!?!
Sid anyone else notice that when Chuck Todd asked the question, Obama did not go anywhere near it?
Spanky,
Looks like you were right...
Justice Department Obstructing 'Fast and Furious' Gun Probe, ATF Director Says
The Justice Department is reportedly looking to oust Melson, who has been acting ATF director since April 2009, as the agency deals with its biggest scandal in nearly two decades.
In a separate development, congressional sources have learned that not only was U.S. taxpayer money being used to buy guns that were later sent to Mexico, but the main target of the investigation was actually a FBI informant and former drug dealer who had been deported years ago.
Ouch!
Totas - you have to check out Issa and Grassley's letter to the DOJ/ATF this am. They had a secret meeting with Meson on 7/4. Secret at Melson's request. He was represented by his own lawyer, not one from the government.
Those dudes are toast.
fielden there is nothing adult like in running and hiding/conceding. Leading from behind is the opposite of being an adult.
Or did you find the reduce the debt at all costs/cut medicare and social security planks in Obama's '08 platform?
fielden - when Reid shirks the law and fails to produce a budget, is that acting like an adult? Sure doesn't seem like it, right?
Once this debt ceiling agreement is reached, watch Barrack and Michelle take to the friendly skies once again on Air Force 1. You can bet that the next exotic vacation is already planned.
As for the rest of you "bumps in the road" You can all just eat cake.
cantor today oh we'll talk about getting rid of loopholes....how do you spin that repb....s.... so i guess you're liar's...we won't stand for any tax increases....hmmmmm how's your boss grover norquist feel about that....club for lack of growth....
14th that's what i'm talkin about fielden.....funny how all those in the rep. party didn't even know that was in there....kinda like playing baseball without knowing the rules....
No, it doesn't change anything. Obama refused to vote for an increase in the debt ceiling and if he believes in it then stand by it. Now he wants to spend more money on his programs he wants to increase the debt ceiling. Don't you think it makes Obama a hypocrite? Just like his so called caving into extending the Bush tax cuts which he said he would not do then did it, makes him a hypocrite. Was going to create millions of jobs with his shovel ready projects, then is seen joking that the "shovel ready projects, were not as shovel ready as expected," making him a hypocrite. Obama is so far in over his head that he needs one of those shovels to try and dig himself out of the hole he created.
i think obama's a moderate demo....it's just so many think he's not because the repbulican party that i knew from ronnie reagan is just way to extreme now ...they say they love ronnie but what 11 tax hikes, the 86 amnesty for illegals....debt ceiling raised again and again....thats a non starter's for the militant party that exists today.....but thinking of the reps. as i do and most americans have to agree that the party has verved right. there just alot of angry people mad at anything and everything....in the art of war it says i believe if your enemy is anger irrate them.....i believe obama knows that without any supervision they'll go to far the polls show it....obama maybe just that smart, there out of control...they walked into the trap of being the defender's of the rich....they don't even deny it.. screw everybody but the rich defend them at the expense of the middle class...doesn't seem like the strategy ild have my candiate follow;....
I dont trust this weasel !..... Get it in writing
bob 180--who are you? I don't think you are as ignorant as you come across so there must be something else driving your continuous diatribes against anything and everything that is "not Bob"/ There are serious people engaged in this attempt to get things going again. Do you think it is important to invest in failing infrastructure or are you ok with a bridge in your town falling during rush hour? Do you think people like the Secretary of the Treas and the Fed Chief got where they are because they don't know what to do? Do you think the blather about a balanced budget amendment is anything but bullpucky? The Republican leadership has announced in bald terms that they are doing whatever they can do to the country's economy to prevent this Pres from being re-elected. You don't have a problem with that? Sounds a bit like treason to me if one is ready to take the country down "to save it." A little quiet thought please. What do you seriously think is the way to go? Large spending cuts will tank the economy. Is this what you want? Going back to the tax rates of the Clinton era will save more than 3 trillion dollars in 10 years. That doesn't sound like a reasonable approach? Not trying to hang you out but am truly mystified. If you are not at least a small multi-millionaire (maybe you are), you are working against your own self-interest by pushing the agenca of the far right as financed by the Likes of the Koch bothers and their ilk. They are not on our side.
We need to start cutting everything that goes outside the country: ie all the financial help to so called "friends"! We need to focus on the US and its citizens first! We need to pull all out of Iraq, stop ops in Libya, and pull our troops out of Afghanistan! let each nation fend for itself. I do not remember in my oath that I will support other countries and their citizens!?......When did anybody help us?........so we need to become focused on America and the hell with the rest!
Eric the Cleric says "I am open to closing loopholes as long as you give a tax break when you close a loophole".
Tell you what Eric I am on a diet so I will give up donuts as long as they are replaced with cupcakes.
I think Cantor left the negotiations because somebody reached across the table and twisted his silly nose for saying stupid stuff like that. The negotiations will go better without him because he does not understand the difference between politics and negotiation and he would just unnecessarily antagonize people which breaks down any chance of reasonable compromises. If your going to have an idiot like Cantor mucking up serious and painful negotiations with disingenuous drivel I suggest everybody at the table wear a clip on tie.
Whiskey Tango Foxtrot?
Ever notice the liberal spin on spending??
It isn't even referred to as "spending". Now it's "investing" (sounds more responsible I guess).
What is our debt service costing us per day?? How about $5 BILLION per day.
What does that amount to in one year?? How about $ONE TRILLION AND $825 BILLION.
That's just for one year, and that's before we spend one dime on anything. This is how bad things have become.
It always amazes me when the Republicans say we have to put everything on the table to have a serious conversation about raising the debt ceiling. Then when closing tax loopholes for corporations and tax increases on the rich are on the table they walk away. During the Bush years the debt limit was raised 17 times by Republicans and the surplus Bill Clinton created the Republicans gave to the corporations.
The Republican Congress has filabustered every jobs bill President Obama and the Democrats has placed before them. Most of which they had already agreed to until President Obama signed onto them so clearly this is not about the debt limit increase. Just as those Union stripping bills in several states was not about the budget. The Republicans have even said they will do anything they can to make President Obama a one term President.
The Republicans are willing to sacrafice the poor, unemployed, underemployed, women and children, education, entitlement programs(which are funded by the American worker so stop saying its a handout), bank regulation, the EPA, the FDA( I could go on and on) all for the benefit of their corporate backers. Please lets address the ideology of the Republican and Tea Party shall we.
The Republicans claim that if you tax the job creators the top 2% of the wealth earners in this country they won't create jobs and they are taxed enough already. Lets's get something straight for those of you who believe this the top 2% percent of wealth earners pay less in taxes than the rest of the country. Some don't pay taxes at all. The segment of the business population that creates the most jobs is small business.
The Republicans got the tax cuts for the rich they wanted in December 2010 during the lame duck and said it will create jobs. Mr Beoner, Mr Cantor and Mr Reid where are the jobs you promised for these tax cuts. During the W years you had these tax cuts and jobs weren't created and salaries remained stagnent for the working and middle classes. So I don't want to hear that nonsense any more because the ideology behind it has been proven false time and time again.
If you have any questions about the truth and honesty concerning the Republicans and their good faith negotiating New Jersey is a clear example. Chris Christie got the Democrats to give him the ability to Union strip and said they were getting other things in return and then Christie pulled the rug out from under them. Not only did he get what he wanted he didn't come through on any promises he made during negotiations and added more tax breaks for the wealthy.
Democrats in washington take note this is exactly what the Republicans will do to you if you don't stand your ground. On a separate not the way the Republicans and Tea Party speak to and about the President is very disrespectful. They make ignorant assesments and use language they would never use towards George W Bush or any other president for that matter. When speaking to them or about them the President is the only adult in the room and tries to put aside politics to get the American people and our country on stable ground.
People we have to be ready in 2012. Remember the Union stripping bills, attacks against planned parenthood, education, health care, medicare, tax cuts for the wealty and everyone struggling to make it today. Remember which party was for those things and which party was against them we can't make a mistake or we all will suffer the consequences.
just saw the little weasel on Morning Joe this morning as Mika tried to get him to answer questions; that was like pulling teeth. He did say he's willing to close one tax subsidies as the President mentioned. Knowing him, he will only allow that one and probably walk back out of the meeting.
What's with Obama talking the other day about republicans "putting a gun" to the head of america. I thought it was that kind of rhetoric that led to Gabby Giffords being shot. Oh well, just another double standard and free pass for liberals.
Rob....I think Warren Buffet said the same thing only worse. It's called trying to force someone to see things their way...you can't do that with a lollipop. He described it correct cause the repubs do not know anything about compassion for their fellow man. Look at what they are doing to their own constituents. They're too scared of the teapartiers to think rationally. It's all about defeating Obama!!!! Remember Mitch said so himself.
cantor is nothing but a lying, bully. a member of an unamerican party, which seeks to destroy this nation from within!
I sure hope he cleared this with Grover No taxes, No Way
Otherwise, he'll have to recant or more likely state that he was "misquoted"
And I think that it is discourteous, especially to weasels, to compare this man to them!
Cantor is a prick
With ears, yet! --- Looks too much like Joe Goebbels!