The Republicans rendered themselves ineffective when they let The Tea Party and Americans for Tax Reform (ATR), not just tie their hands behind their backs, but suspend them by hooks and put targets on their heads. During the last elections they loved The Tea Party, it was their own version of the Obama's grassroots organization, with one exception. Obama and his people led their grassroots people, and the Republicans allowed themselves to be run by theirs. Republicans running their own party is simply an illusion at this point. What a lot of people don't know, or maybe they do, is that many Republicans signed contracts with ATR stating they would under no circumstances vote for tax increases. It has been made clear to them that any rollback of the Bush tax cuts (the most common sense solution to increasing revenue) would be considered tax increase. If they sign a bill that includes rolling back the Bush tax cuts, the ATR and The Tea Party will do everything they can to get them out of office. They aren't willing to take that chance, especially the younger ones that just got elected for the first time. Getting re-elected is more important to them than what they are doing to the country. How's that for patriotic?
When Bush implemented the tax cuts for the top 1%, he did so because at that time there was a projected $125 billion surplus. After 9/11 and the start of two wars, that projected surplus became a $9 billion deficit. That should have been the end of the tax cuts right then and there. They were never intended to be permanent, and wars are not cheap, especially when you have billions of dollars going missing and no one bothering to figure out where it went. Not only did he NOT suspend those tax cuts, he gave further tax cuts in 2003 with The Jobs and Growth Tax Relief Reconciliation Act of 2003. This was a law that reduced taxes on dividends and provided a cut in the capital gains tax rate. Though the 2003 tax cuts were meant to be permanent, the 2001 tax cuts weren't. I hate to say it, but with the economy already in trouble, Obama was irresponsible for letting those tax cuts continue. At this late date, no one in their right mind should think continuing those tax cuts is anything but bad for this country.
When you have a bill you can't pay, you cuts back spending and find extra income to pay it or have your credit rating affected. That is the position we are in. It is simple common sense. Though Obama shouldn't have to negotiate for the debt ceiling increase, he was willing to give the Republicans $4 trillion dollars in spending cuts in exchange for putting an end to the tax cuts that should have never been. They refused it. Putting and end to this mess they have fabricated gives the Republicans a better chance of getting re-elected than playing this 'all or nothing, I'm gonna call your bluff' game. If they were smart they would tell The Tea Party and Americans for Tax Reform where to stick it, and make a common sense compromise that several of them want anyway.
By the way, the Dow Jones will open this morning down in triple digits and the GDP numbers have come back worse than expected.
