Debt ceiling drama already here (deal allegedly reached)

I don't see this clearing the House. The spending cuts are a big deal to some of them and this isn't enough

 

Agreed, but if the theater results in a credit downgrade by Fitch (under review) like it did from S&P in 2011 4 days after a deal was reached then it won’t feel at all like just theater after the markets drop 10-20% (as they did in 2011).

 

Far from over. McCarthy is getting hammered by team maggot.

 

The amount of able bodied welfare kings without children getting medicaid and food stamps could fit in Lauren Boebetts mouth. Very small acquiescence by the democrats from what it sounds like.

The canceling of the IRS spending is hilarious. It was a funding mechanism that raised more than it spent so in effect the Republicans are letting the spending from last year stand and the funding of it fall. They are amazing deficit hawks.

 

What I see is a President that was willing to reach out to the opposition party, compromise, and save the country from economic ruin. There are no winners or losers in this except for those who would have lost their jobs and retirement. No one got everything they wanted, and there was give and take in the process which is why it was called a compromise.

Cudos to our President and the other adults in the room. I believe it will pass but I expect the Hate America First Caucus, AKA Freedom Caucus, will want to get rid of McCarthy as Speaker.

 

Because nobody thinks anybody should ever give up anything.

 

Pretty good overall think piece by Yglesias

Seventeen thoughts on the debt ceiling deal

 

As opposed to the false narrative that she used her office to make money as a number of conservatives/Republicans have suggested.

 

And the real irony is that spending on IRS enforcement is the only form of spending that has a positive return on investment or in very simple terms every dollar spend on IRS enforcement returns $5 to $9 in additional revenue.

CBO’s estimate of revenues is based on the IRS’s projected returns on investment (ROIs) for spending on new enforcement initiatives. The IRS estimates those ROIs by calculating the expected revenues that would be raised from taxes, interest, and penalties as a result of the new initiatives and dividing them by their additional cost. (The agency has provided ROIs over the past five years as part of its budget justification.) The IRS’s ROIs ramp up over three years as staff become trained and fully productive, arrive at the peak level, and then stay there. In recent years, peak ROIs have ranged from 5 to 9. That is, a $1 increase in spending on the IRS’s enforcement activities results in $5 to $9 of increased revenues.
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How CBO Estimates the Effect on Revenues of Increased IRS Funding

 

There is a rumor that the GOP is planning to introduce $3 trillion in tax cuts to businesses at the end of June

 

Not sure, there are just as many $Millionaire and $Billionaire Tax cheats on both sides of the political divide.

However, not providing the IRS with modern system, tools and additional people is the exact WRONG thing to do.

Shocking that a Trump-ette in McCarthy is vehemently opposed aiding the IRS in doing their jobs.

 

Just a guess, but would bet money more than one has already been there.

 

If the deal fails to pass Congress, do those who vote against it really expect to get re-elected after the pain that default will cause? I suppose the MAGATs will be safe, it's a cult, but Democrats had better think twice. Or maybe not. I give up on American politics today.

 

I don't know. Look at what the Repubs were demanding and look at what they got. This was a win for Biden and a loss for Repubs.

 

We didn’t default? What a shocker. It’s just a reality show.

 

They extracted far more in 2011 than this time. Sequestration forced some serious fiscal discipline for a while, until Trump was elected and they abandoned it.

While this theater is mostly on the republicans, the democrats could have passed a debt ceiling raise before their 2022 term ended, but they chose not to.

 

Just a game to each side, yet some folks still get caught up in the finger pointing (which is exactly what both sides want).