Re-Electing Family-Hating Professional Politician Jeff Flake Means Bigger Budget Deficits and Fewer Jobs for American Workers

At Newsweek's blog The Gaggle, Andrew Romano points out why re-electing family-hating professional politician Jeff Flake and his GOP cronies will just make things a lot worse in the country that crumbs like Flake seemed to determined to destroy:

Nothing is more important to Republican politicians these days than jobs and the deficit—at least according to Republican politicians. As House Minority Leader John Boehner put it in a "major economic address" on Tuesday, President Obama is "doing everything possible to prevent jobs from being created" while refusing to do anything at all "about bringing down the deficits that threaten our economy." Elect Republicans in November, Boehner assured his audience, and we will put an end to this insanity.

There's only one problem with Boehner's message: so far, the things that Republicans have said they want to do won't actually boost employment or reduce deficits. In fact, much the opposite. By combing through a variety of studies and projections from nonpartisan economic sources, we here at Gaggle headquarters have found that if Republicans were in charge from January 2009 onward—and if they were now given carte blanche to enact the proposals they want to—the projected 2010–2020 deficits would be larger than they are under Obama, and fewer people would probably be employed.

The math is pretty straightforward. Let's start with the deficit. According to the Congressional Budget Office, Obama's stimulus plan is projected to increase budget deficits over the next decade by $814 billion. That's a big number. But Republicans opposed the legislation refused to provide an alternative, and now insist that it's been a total failure. So let's be generous and subtract it from their side of the equation. The Obama deficit: $814 billion. The GOP deficit: $0.

Next up is health-care reform. Obama passed it; Republicans want to repeal it "lock, stock, and barrel." The reason, as Senate Minority Leader Mitch McConnell explained in July, is that "we all know that it's going to increase the deficit." Unfortunately for the GOP, though, nonpartisan experts tend to disagree. Just this Tuesday, for example, the CBO released a letter saying that Obama's health-care-reform legislation would "reduce the projected budget deficit by $30 billion over the next 10 years,” while repealing the law would generate "an increase in deficits ... of $455 billion ... over that [same] period." Factor those figures into the equation and the Obama deficit falls to $784 billion. The GOP deficit, meanwhile, rises to $455 billion. Getting warmer.

The final piece of the puzzle is the Bush tax cuts. Obama wants to extend them for the 95 percent of taxpayers making less than $250,000 a year; Republicans want to extend them for everybody. How will these extensions affect the deficit? Glad you asked. According to data compiled by The Washington Post, "the Democratic proposal would add about $3 trillion to the deficit during the next decade, while the GOP plan would cost $3.7 trillion." That brings the total Obama deficit to $3.784 trillion over 10 years, and its GOP counterpart to—drumroll, please—$4.155 trillion.

That's right. Even if we assume that the Republicans would've spent $0 to stimulate the economy in the wake of the largest economic collapse since the Great Depression—an unlikely scenario, given the very real risks of inaction—their proposed policies would still produce a deficit $371 billion larger than President Obama's.

(Or $335 billion; Boehner also says he'd like to freeze nondefense discretionary spending at 2008 levels, which would save a grand total of $36 billion.)

On jobs, it's a similar story. So far, Republicans have only said they'd do—or that they would've done—two large-scale things the Democrats haven't: (1) scrap the stimulus, and (2) extend the Bush tax cuts for Americans earning more than $250,000 so as not to (in Boehner's words) "impose job-killing tax hikes on families and small businesses."

How would these measures affect employment? Regarding the stimulus, the answer is pretty clear. In a report out this week, the CBO estimates that between 1.4 million and 3.3 million fewer people would be employed right now if the American Recovery and Reinvestment Act had never made it through Congress. Split the difference, and the pro-stimulus Obama moves ahead of the anti-stimulus GOP by about 2.35 million jobs. (A more dramatic estimate by the economists Alan Blinder and Mark Zandi [a McCain 2008 adviser] puts the number at 2.7 million, but we'll stick with the CBO stats for now.)

The effect of tax cuts on job creation is a little trickier to tally. Extending all of them, according to the CBO, would lower unemployment by 0.3 to 0.8 percent over the next year or so; extending them solely for people making less than $250,000 would produce a somewhat smaller effect, for a difference of roughly 200,000 to 500,000 people. The problem, as economist William G. Gale of the Brookings Institution has noted, is that "of 11 potential stimulus policies the CBO recently examined, an extension of all of the Bush tax cuts ties for lowest bang for the buck." In fact, he continues, "letting the high-income tax cuts expire and using the money for aid to the states, extensions of unemployment insurance benefits, [or] tax credits favoring job creation ... would have about three times the impact ... as continuing the Bush tax cuts."

In addition, it's unlikely that extending the cuts for the richest Americans would have much of an effect on small-business hiring, which is a claim that Republicans make with some regularity. Why? Because of the taxpayers that report running small businesses on their taxes, only 2 percent fall into the top two income brackets.* The other 98 percent of small-business owners make less than $250,000 a year and wouldn't pay higher taxes under Obama's plan.

History isn't on the GOP's side, either. If keeping the top marginal tax rate at 35 percent—the rate under Bush, and the rate that Republicans are fighting to preserve—spurs so much hiring, why didn't America experience any job growth at all during Bush's time in office? And if a top marginal tax rate of 39.6 percent—the rate under Bill Clinton, and the rate that Democrats are fighting to restore—is such a job killer, why did payrolls grow by 20 percent during the 1990s?

The implication here isn't that higher tax rates equal more jobs. Far from it. But there's simply no evidence, either in the history books or the latest projections, to suggest that extending all of the Bush tax cuts would provide an employment boost large enough to offset the number of jobs that would've been lost if the GOP had succeeded in blocking the stimulus—let alone lasting enough to justify adding another $700 billion to the deficit.

The bottom line, then, is that recent GOP proposals would produce fewer jobs and far larger deficits than the plans Obama has already passed or currently wants to pass.

Rep. Jeff Flake: "Deficits Don't Matter. The Federal Government Needs to Send Three Million Dollars Each to the Richest 120,000 Americans."

Here is Paul Krugman's column in the New York Times today. One thing Jeff Flake is passionate about is making sure checks averaging $3,000,000 to each of the richest people in America. How about sending $250 a week to Arizonans who've been laid off and can't find another job? Nah. Jeff Flake says that's wrong:

We need to pinch pennies these days. Don’t you know we have a budget deficit? For months that has been the word from Republicans and conservative Democrats, who have rejected every suggestion that we do more to avoid deep cuts in public services and help the ailing economy.

But these same politicians are eager to cut checks averaging $3 million each to the richest 120,000 people in the country.

What — you haven’t heard about this proposal? Actually, you have: I’m talking about demands that we make all of the Bush tax cuts, not just those for the middle class, permanent.

Some background: Back in 2001, when the first set of Bush tax cuts was rammed through Congress, the legislation was written with a peculiar provision — namely, that the whole thing would expire, with tax rates reverting to 2000 levels, on the last day of 2010.

Why the cutoff date? In part, it was used to disguise the fiscal irresponsibility of the tax cuts: lopping off that last year reduced the headline cost of the cuts, because such costs are normally calculated over a 10-year period. It also allowed the Bush administration to pass the tax cuts using reconciliation — yes, the same procedure that Republicans denounced when it was used to enact health reform — while sidestepping rules designed to prevent the use of that procedure to increase long-run budget deficits.

Obviously, the idea was to go back at a later date and make those tax cuts permanent. But things didn’t go according to plan. And now the witching hour is upon us.

So what’s the choice now? The Obama administration wants to preserve those parts of the original tax cuts that mainly benefit the middle class — which is an expensive proposition in its own right — but to let those provisions benefiting only people with very high incomes expire on schedule. Republicans, with support from some conservative Democrats, want to keep the whole thing.

And there’s a real chance that Republicans will get what they want. That’s a demonstration, if anyone needed one, that our political culture has become not just dysfunctional but deeply corrupt.

What’s at stake here? According to the nonpartisan Tax Policy Center, making all of the Bush tax cuts permanent, as opposed to following the Obama proposal, would cost the federal government $680 billion in revenue over the next 10 years. For the sake of comparison, it took months of hard negotiations to get Congressional approval for a mere $26 billion in desperately needed aid to state and local governments.

And where would this $680 billion go? Nearly all of it would go to the richest 1 percent of Americans, people with incomes of more than $500,000 a year. But that’s the least of it: the policy center’s estimates say that the majority of the tax cuts would go to the richest one-tenth of 1 percent. Take a group of 1,000 randomly selected Americans, and pick the one with the highest income; he’s going to get the majority of that group’s tax break. And the average tax break for those lucky few — the poorest members of the group have annual incomes of more than $2 million, and the average member makes more than $7 million a year — would be $3 million over the course of the next decade.

How can this kind of giveaway be justified at a time when politicians claim to care about budget deficits? Well, history is repeating itself. The original campaign for the Bush tax cuts relied on deception and dishonesty. In fact, my first suspicions that we were being misled into invading Iraq were based on the resemblance between the campaign for war and the campaign for tax cuts the previous year. And sure enough, that same trademark deception and dishonesty is being deployed on behalf of tax cuts for the wealthiest Americans.

So, for example, we’re told that it’s all about helping small business; but only a tiny fraction of small-business owners would receive any tax break at all. And how many small-business owners do you know making several million a year?

Or we’re told that it’s about helping the economy recover. But it’s hard to think of a less cost-effective way to help the economy than giving money to people who already have plenty, and aren’t likely to spend a windfall.

No, this has nothing to do with sound economic policy. Instead, as I said, it’s about a dysfunctional and corrupt political culture, in which Congress won’t take action to revive the economy, pleads poverty when it comes to protecting the jobs of schoolteachers and firefighters, but declares cost no object when it comes to sparing the already wealthy even the slightest financial inconvenience.

So far, the Obama administration is standing firm against this outrage. Let’s hope that it prevails in its fight. Otherwise, it will be hard not to lose all faith in America’s future.

If you want to make sure the richest 120,000 Americans get their average checks for three million dollars and at the same time make sure laid-off Arizonans get bupkis in unemployment compensation, vote for Congressman Jeff Flake or his even more moronic opponent Jeff Smith in Tuesday's Republican primary.

Budget-Busting Spendthrift Congressman Jeff Flake Wasted Over One Trillion of Your Taxpayer's Dollars on Useless, Endless Wars We Can't Win

Budget-busting Jeff Flake is at again!
Can we - and our grandchildren - afford spendthrift Jeff Flake?

This loose-spending congressman continues to waste taxpayer dollars and drive up the deficit, as he has done continuously since he entered Congress in 2003.


He's voted to spend over $1.15 TRILLION DOLLARS on the combined wars in Iraq and Afghanistan and he shows no signs of stopping. Re-elect Jeff Flake, and he's just going to go on wasting your hard-earned money on useless, endless wars we can't win.

The Gulf War under the first President Bush cost only $102 billion in fiscal 2010 dollars. The decade-long Vietnam misadventure cost $738 billion.

Our war in Iraq alone has exceeded that, at $784 billion and counting. Afghanistan and other Mideast operations add another hefty $321 billion and growing fast.

Combined that's $1.15 TRILLION in money Jeff Flake has wasted.

He won't help out-of-work struggling families in Chandler and Mesa, but Jeff Flake spends like a drunken gambler to pay off corrupt mullahs and tribal leaders in Kandahar and Marja.

Jeff Flake: Arizona can't afford another two years of this budget-busting spendthrift. He's stealing our future.

Stop Jeff Flake's Plan to ADD More than Two Trillion Dollars to the Federal Deficit! Don't Let Jeff Flake Mortgage Your Grandchildren's Future!

Wacky extremist Arizona Congressman Jeff Flake has proposed a risky scheme that would add over $2,000,000,000 - that's TWO TRILLION DOLLARS - to our nation's deficit.

That's right. The supposed fiscal conservative Flake, who's very big in protesting $200,000 federal expenditures when they're for community centers or libraries or care for senior citizens, is actually proposing hugely adding to the federal deficit and the nation's long-term debt.

Jeff Flake is irresponsible with the money coming out of your grandchildren's future.

Here's his plan: Pass a bill this fall to drastically reduce the taxes of the very wealthy. The Bush tax cuts, which did no good to stimulate the economy of the anemic past decade, were always scheduled to expire. But Jeff Flake is paying no mind to the looming crisis of unsustainable deficits as far as the eye can see. He wants to ADD more than two trillion dollars to our long-term debt.

If Jeff Flake has his way, the United States will be bankrupt in no time.

You need a fiscally responsible member of Congress representing Arizona's Sixth Congressional District, not a budget-busting Flake who doesn't care about debt or the deficit.