The Daily Sausage – Thursday Edition

A victory for common sense, missing marbles, cross-pond insanity, self-hating Republicans, The Mittstorm Cometh VII: Degredations, Romney’s tax rates in perspective, more common sense, even more common sense, and the next bubble.

Welcome to the Daily Sausage.

First up, in a victory for common sense, the Democratic tax plan which would maintain the Bush Tax Cuts for all individuals making less than $250,000 a year while allowing the rates on those making more than $250,000 a year to return to Clinton-era levels has passed the Senate 51-48. Yes, you read that right. It passed 51-48. Mitch McConnell tried to call Harry Reid’s bluff, betting he didn’t have 51 votes, and it turns out he had a pair of pocket Aces. The Republican tax plan, by the way, failed 45-54. Cherish this victory, because there’s no way Mitch McConnell ever does this again.

Speaking of Republican economics, 40 Economists across the idealogical spectrum say the GOP has abandoned economic reality. This is not news to anyone that’s been paying attention to the GOP since 2008, but it’s always nice to have a group of experts to back you up.

And for those of you across the pond, please note that this is not a uniquely American phenomenon, as UK Prime Minister David Cameron has promised to “finish the job” on deficit reduction. Austerity now, austerity forever, until the economy improves.

Senator Rob Portman (R-OH), rumored to be on the shortlist for Mitt Romney’s VP spot, has introduced the End Government Shutdowns Act, which would fund the government even if Congress cannot come to an agreement on funding channels. This is likely in response to House Republicans threatening to shut down the government unless the PPACA is defunded and burned in effigy and President Obama admits he’s a secret Kenyan muslim socialist or some such bullshit. The House GOP is so extreme (How extreme is it?) the Senate GOP is trying to pass legislation to keep them from blowing up the Federal government.

And now it’s time for our regular feature, The Mittstorm Cometh VII – Degredations

The Romney campaign held an event yesterday where he rounded up small businesses and asked them to talk about how they did, indeed, “build this”, contrary to what they believe the President said.

However, as it turns out, most of those business were built with government subsidies or contracts, thus proving the President right.

I’ll admit, the President’s statement wasn’t well worded, but the idea behind it is ultimately correct. No man or business is an island onto themselves; we rely on eachother as a society for our workers and customers, and we rely on the government, through our taxes, to do the things that we individually cannot and that private industry will not. Burning the government to the ground and believing that somehow the citizenry and private industry will flourish isn’t just foolish; it’s dangerous. Yet, there are large numbers of people that would like to do exactly that. These people are silly, and should not be listened to. Mittstorm Level 4: Keep your Government hands off my Medicare silliness.

A lot of people are confused about how rich Mitt Romney really is, and how little he’s paid in taxes on that wealth. Well, here’s a lovely chart comparing him to the last few Presidents. As we can see, Mitt Romney is very rich. In fact, he’s richer than every President in history. Not only that, but his effective tax rate over the last two years is lower than every other President going back to Reagan. Worth noting: President Obama has paid the second highest effective tax rate during this time period, behind, you guessed it, President Reagan.

In more common sense news, President Obama has called for government action on guns in the wake of the shooting in Aurora, Colorado. That sound you hear is the NRA utterly freaking out, and running the printing presses full bore to make sure that all their members know that President Obama is personally coming to take their guns away, melt them down, and present them with a statue of two doves humping.

The Atlantic’s Conor Friedersdorf has published an excellent article on President Obama’s more rational stance toward Israel. A quote from Aaron Miller in Foreign Policy:

“I’ve watched a few presidents come and go on this issue, and Obama really is different. Unlike Clinton and George W. Bush, Obama isn’t in love with the idea of Israel. As a result, he has a harder time making allowances for Israeli behavior he doesn’t like. Obama relates to the Jewish state not on a values continuum but through a national security and interest filter.”

Bingo. I’m Jewish, an I’m not in love with the idea of Israel. I think Netanyahu is a nutcase and the particular strain of right-wing nationalism that’s take over there is very, very dangerous in that part of the world. I agree with Mr. Friedersdorf that a common sense approach to dealing with Israel isn’t just not a bad thing, it’s exactly what the relationship needs. If Bibi wants to bomb Iran, he needs to know that he’s committing Israel to a military action without the support of the United States, and it’s important for the United States to call Israel out on their human rights abuses in regards to Palestinians and the ongoing illegal settlement issue. Friends tell you you’re awesome, but real friends tell you when you fucked up.

Finally, via Wonkette, the Student Loan bubble has now hit One Trillion Dollars. Senator Dick Durbin has introduced legislation that would allow individuals to discharge student loan debt in bankruptcy court and upon death (two things that cannot be done now), but is predictably going nowhere.

Housing was only the tip of the iceberg. When the Student Loan bubble pops, there are going to be A LOT of VERY unhappy bankers, because you can’t repossess or foreclose on an education.

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