[Today's commentary was compiled and written prior to the announcement of Osama bin Laden's death. We will likely address that topic tomorrow.]
Another work week has dawned, one that includes Congress actually doing more work, which may come as a shock to some, considering the schedule set by House Majority Leader John Boehner.
There are a large number of problems that Congress needs to deal with swiftly and firmly as they return, including the debt ceiling, tax breaks and the Federal budget.
In the spirit of a radio show hosted by a fellow member of the media in Lincoln, we're going to attempt to help the members of our readership heading back to work on Capitol Hill by not just addressing these problems - but giving solutions as well.
We think Warren Buffett said it best over the weekend that if Congress fails to raise the U.S. debt ceiling, their actions would be "most asinine". As Mr Buffett pointed out, “We’re a growing country, and we’re going to have a growing debt capacity." We all want America to grow stronger again - and yes, we are concerned about long-term debt. But that long-term debt was not created overnight, and it will not be solved overnight, as we and countless others have reminded everyone until we're nearly breathless.
The solution to the problem of the debt ceiling is simple: raise the debt ceiling. We have done it many other times before with no apocalyptic consequences. In fact, during the Clinton years we raised the debt ceiling AND managed to have a surplus by the time the decade ended. The alternative - NOT raising the debt ceiling - does have the possibility to cause massive disaster, as we've discussed previously. As others have also stated elsewhere, raising the debt ceiling is actually constitutional, as Section 4 of the 14th Amendment reads, “The validity of the public debt of the United States…shall not be questioned.” Finally, as a matter of national security, President Obama can technically ignore the debt ceiling, if he chooses to, with no significant consequences.
Assuming then, that we do raise the debt ceiling, that still leaves us with the problems of a Federal budget that needs more revenue, and gives far too many unnecessary tax breaks.
In the midst of a weekend that included a trip to the tornado ravaged areas of the South, a quick trip to Southern California, and the White House Correspondent's Dinner (also known colloquially in DC as "Nerd Prom"), the President found time to give his weekly radio, tv and internet address, where he touched on both of these problems.
While President Obama blasted the oil companies, he didn't do so for their having record profits, so much as he did for them having record profits while taking approximately four billion dollars last year in government welfare. They did so through subsidies, a policy where the government is supposed to use some of our tax dollars to support struggling industries.
No one who has even a rudimentary grasp of reality believes the oil and gas companies are struggling.
As President Obama pointed out, “When oil companies are making huge profits and you’re struggling at the pump, and we’re scouring the federal budget for spending we can afford to do without, these tax giveaways aren’t right,” Obama said. “They aren’t smart. And we need to end them.”
Democratic House & Senate members have already committed to demanding that we end those subsidies. Republican lawmakers have already said they'll defend the rich oil companies, while pump prices continue to climb above four dollars per gallon. We have to say, the Republican Party's position on this issue is appalling - but sadly not surprising, given their current leadership.
There are other subsidies, in the form of tax breaks, that we also think should be eliminated - like the Bush Tax Cuts for the Rich. Tax cuts are something we can afford when times are good, and our pockets are flush with money. That is not the case right now - and everyone knows it.
It is time to quit coddling the crybabies, and put back into our budgets the money we can no longer afford to give out to those who don't need it anyway. Doing so would move us significantly closer to solving both the problems of the Federal budget and wasteful tax breaks.
