Taxes and Credit Rating Agencies


John Boehner says the Republicans have  a serious plan to deal with the debt ceiling  issue.  It involves, from the perspective of this writer, an extreme stretch of a concept.  A balanced budget amendment to the constitution that would have to be sent to the states for ratification.  Nice concept, really is, except to get that kind of concept through congress would take a LOT more debate than the very limited timetable this debt ceiling debate has been given, seeing how both sides have taken a lot of time to do a lot of political posturing.

Maybe at some point, but not this time.

Tax increases are still off the table for the Republicans.  Which is stupid.  I don’t know if anyone told these repubs this, but taxes are how government makes money, it is called revenue.  It is impossible to expect the middle and working classes of this nation, along with the elderly, to entirely shoulder this burden.  Taxes must go up, they must go up on the wealthy, they must go up for large corporations, and they must go up NOW.  The cautionary tales of companies that paid much less than the rate that you and I pay are legion, and they are more than tales, they are true stories, and they are wrong in the extreme, when you and I MUST pay more than they do.

The tax base of this nation has been so completely eroded, by dropping taxes for corporations and the wealthy, that no matter how you slice it, any long-term fix for this nations deficit (which never matters to the Republicans until a Democrat is in office) means that tax increases are a must.

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The human capacity for denial and rationalization is always shocking, but never surprising.

David Levy

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Viddy of the day:  S&P warns of Downgrade to U.S. Credit Rating

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And is anyone else annoyed at how pompous these credit rating agencies are getting over this?  They are now saying even if a smaller agreement is put in place, they will move to drop America’s credit rating anyway.

These are the same credit rating agencies that read the 2008/09 recession so badly that they actually exacerbated the issue and made the recession worse. They are the same credit rating agencies that gave subprime mortgage companies AAA ratings right until they fell off the damn cliff.

You remember that, right? All the companies they said were OK?  All those companies that Moody’s and the other two credit rating companies read so completely wrong that it actually made the recession significantly worse?

Or the damage they did to the Portuguese economy?(among other economies?) Or that they let the Enron fiasco burn far longer than they should have?

These are the guys we are going to listen to about fiscal responsibility?  You can if you like, but you’d be a damned fool if you did.  They have skin in the game, being not only private companies that are paid by companies that they issue ratings for, but they are companies that want to show they don’t themselves need to be regulated, and are at times unnecessarily critical (ask the British, Portuguese, or Irish about that.)

We need to regulate these people. They are, after all, important to us all, and they have too much power, and are clearly not good enough to do the job they have to do, given their track record.

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That’s it from here, America.  G’night.

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