TaxCheat Geitner -- Hand in the Till

[flacaltenn]

This is pitiful.. Geitner came out today to mark the US debt ceiling as broken. And he has an idea...

http://thehill.com/homenews/administ...s-debt-ceiling

The steps Geithner announced Monday will free up $12 billion over two months by halting new investments in the Civil Service Retirement and Disability Fund and redeeming existing investments in that fund.

Geithner also has the one-time option of not reinvesting securities that mature in that federal employee retirement fund, as the Treasury usually would do. In that situation, the Treasury could free up $67 billion more in headroom on June 30, when some of those securities mature.

Along similar lines, Geithner announced Monday that he was slowing investment in the Government Securities Investment Fund for federal employees’ retirement, which will create another $130 billion.

OMG.. There goes ANOTHER "trust fund".. If I was a Fed employee, I'd be taking to the streets with NoOneReal.
(probably different demonstrations tho)

Even if I TRIED to understand how he can get away with this, I can't fathom how "not reinvesting (matured) securities" is not a legal suit for mismanagement of public funds..

[BlueStreak]

It's a tactic. Just as "They're not going to pay the troops!" was the last time around.

[BlueStreak]

When the House goes to "recess" do they, like, play on Jungle Gyms and teeter-totters?

Dave

[merrylander]

Considering that we are the only nation that plays this childish "debt cieling" nonsense why get yourknickers in a twist?

[piece-itpete]

There was a guy on Newshour that discussed this - the feds can take money from other programs to stave off default till early to mid August.

It was good, I didn't catch his name. He said both defaulting and raising are bad, that the day of reckoning is coming. Even raising it, he likened it to walking towards a cliff, but you don't know where the edge is.

We're what, 115 billion a MONTH in the red? So raising taxes will work? That's $4600 a year for every man woman and child!

Pete

[JonL]

Originally Posted by piece-itpete

We're what, 115 billion a MONTH in the red? So raising taxes will work? That's $4600 a year for every man woman and child!

Pete

How much would it be for men, women, and children in various economic strata (and tax brackets) if corporations like GE began to pay taxes again, and at historically reasonable rates? How about if Bush's irresponsible tax cuts were allowed to expire?

If we want to be at war, we ought to want to pay for it. Let's not forget how we got into this mess. Things were looking pretty good in 1999.

[piece-itpete]

Yeah, spending the SS money and cutting the military like there'd never be another threat really worked out for us.

No matter WHO pays, simply raising taxes will take 115 billion - 1.3 TRILLION a year - out of the economy. Over 10% of GNP! Over and above what they already take.

How big of a government do you want?

Pete

[whell]

Originally Posted by JonL

How much would it be for men, women, and children in various economic strata (and tax brackets) if corporations like GE began to pay taxes again, and at historically reasonable rates? How about if Bush's irresponsible tax cuts were allowed to expire?

If we want to be at war, we ought to want to pay for it. Let's not forget how we got into this mess. Things were looking pretty good in 1999.

We couldn't do THAT! Why, we wouldn't be able to use the tax code to shape and direct social policy, or to reward our political benefactors. How could we possibly let our politicians use tax money to launder political contributions if we did THAT!

And, if you think we looked good in 1999, do you also pay your Master Card with your Visa?

[finnbow]

Originally Posted by piece-itpete

Yeah, spending the SS money and cutting the military like there'd never be another threat really worked out for us.

No matter WHO pays, simply raising taxes will take 115 billion - 1.3 TRILLION a year - out of the economy. Over 10% of GNP! Over and above what they already take.

How big of a government do you want?
Pete

First, we're trying to pay for the government expenditures we already incurred over the past 10 years.

Secondly, nobody is talking about making up the deficit solely through taxes. Most reasonable economists (also the Debt Commission) set out a formula of 3:1 (cuts vs. revenue).

[noonereal]

Originally Posted by finnbow

.

Secondly, nobody is talking about making up the deficit solely through taxes. Most reasonable economists (also the Debt Commission) set out a formula of 3:1 (cuts vs. revenue).

BS, I am.


seriously though that ratio would be inverted if anyone is being serious