Our lawmakers in congress are already at an all time low, but the recent tragedy in Connecticut has served to show just how petty their refusal to work together really is. Also, the whole world is watching to see if the world’s largest economy is going to offer a world of stability or not. Just wondering. On Monday the President made a third offer with 1.3 trillion in revenue, and about 1 trillion in cuts. Essentially, putting the tax “cut off” at 400K. Not 250K and not 1M as had been requested by the Republicans. Everyone below 400K would have the same tax rate they have now which is a discounted rate from the Clinton era when the budget was balanced.
Included in this deal is a debt ceiling agreement for two years over the one year previously offered by the Republicans in the negotiation. That is not some wild coincidence. Midterm elections are in two years, and an agreement to that date is likely until the next set of congressmen are in place. Their behavior now will likely show in the proportional makeup of that congress, and that fact is known.
Another ramification of the pressure that neither side appear petty in this historical moment is the very real pressure to realize that any party not showing a willingness to get their negotiated work done will damage the whole fabric of the creditworthiness of our nation not so much from a threat of the debt ceiling limit which is yet another issue beyond the budget questions, but because stability is the single most valuable addition to the business world through these unstable times. While congressmen go on vacation and children get shot, they would be well advise not to leave our economy to the whim of the global whim awaiting the US response.
Besides, the incoming congress will only be stronger on the President’s side, and any deal reached will only be stronger on the President’s side. To give the appearance of any leadership at all the Republican side would be well advised to leave their tiny footprint in an inked deal before they leave town. The good news is that if Boehner is not in control of his party as is feared, that the default position is a large boost to revenue which is automatic in the face of a refusal to actually do the work required here.
Today, the DOW went up to 13200, once again putting all the nay sayers to shame as they predict gloom and doom to our national economy under Democratic leadership. This is partially because the likelihood and probability of an agreement is seen as increasing, and a known thing adds value over an unknown thing regardless of party affiliation.
I eagerly await the arrival of the adults in the room be that prior to or after Jan 2013. Our nation is well suited to win economically either way.
Here locally, we are looking into the AQMD allocation of the 53 million in “pollution mitigation” funds that I must remind the reading public is a one time lump some payment for a 30 year lease by the Sentinel plant and its particulate matter (pollution) generating smoke stacks at the north end of PS blowing down over that particular city and DHS first and foremost. It would seem that further inquiry and examination is certainly warranted.
I thank K Kaufmann at The Desert Sun for writing so many articles on that issue of such enormous local consequence.
I can be reached via my website at www.johnpaulvaldez.com