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Rep. Charles Rangel

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Fiscal Insanity

Posted: 07/29/11 10:54 AM ET

Never have I been as disappointed as I am now in over 40 years of serving in the House of Representatives. Our nation's financial system is on the brink of collapse as we approach the Aug. 2 deadline to raise the $14.3 trillion debt limit.

Yet, in the over 200 days they have controlled the House, the Republicans have not only ignored the unemployment crisis, but are holding the president and the American people hostage by refusing to let America meet its fiscal obligations unless we cut Social Security, Medicare and Medicaid.

My Democratic colleagues will continue fighting to ensure that the debt limit is raised, but it won't come at the expense of the middle class and most vulnerable among us.

For months, the president has worked to bring Democrats and Republicans together to find a balanced solution to reducing our long-term deficit. There are currently two different approaches: Republicans want a short-term plan to raise the debt ceiling by upwards of $2.5 trillion with deeper spending cuts in "entitlement" programs; Democrats propose cutting waste and fraud in our expenditures while asking the wealthiest Americans and biggest corporations to give up some of their tax breaks and special deductions. Our plan would reduce the deficit by around $4 trillion and put us on a path to paying down our debt.

Defaulting on our financial obligations is reckless and irresponsible, but the Republican plan is unacceptable. Six months from now, they would again threaten our economic stability and refuse to avoid another default unless we accept their unbalanced, cuts-only approach that asks nothing of those at the top of the income scales while shedding the safety net for seniors and working families.

The cost of inaction on the debt ceiling is dire. For the first time in history, our country's credit rating would be downgraded, causing investors around the world to lose full faith in the credit of the Unites States. Interest rates will skyrocket for people with mortgages and car and student loans, along with anyone with a credit card. Many will lose their retirement savings. The government will not be able to pay its bills, including monthly Social Security checks, veterans' benefits and the contracts we've signed with thousands of businesses.

Our country is still recovering from the financial meltdown that was caused by irresponsible spending and deregulation policies from the past decade. When President Bill Clinton left in 2000, the government had a budget surplus. Instead of using it to pay off our debt, the money was spent on trillions of dollars in new tax cuts for the wealthiest and two unfunded, undeclared wars.

In this fiscal year alone, Afghanistan and Iraq will cost American taxpayers over $1 trillion. Our current involvement in Libya costs taxpayers $55 million per day. For the sake of our heroic soldiers and our nation, we must bring our troops home.

Congress should be focused on getting America back to work. At 9.2 percent, our current unemployment rate is the highest we've seen since the Great Depression. The situation is worse for minorities.

When working people can't purchase what they need, our small merchants suffer and can't add employees. Yet, Republicans talk about cutting funds for our police, teachers, firefighters and civic workers. They are talking about taking away more jobs when we should be coming together to create them and invest in our nation's infrastructure and children's education.

I was appalled last week to learn that a group of Senators known as the "Gang of six" are interested in cutting Social Security, Medicare and Medicaid. The debt limit must be raised, but I won't support any proposal that places our economic obligations on seniors, the sick and the disabled. It's not just a political issue, but a moral issue.

This political game of chicken must come to an end-the jobs and livelihoods of so many families are at stake.

Originally published on New York Amsterdam News

 

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01:12 AM on 08/06/2011
The Sky is falling, The Sky is falling..........Shut up Charlie and pay your taxes
04:36 PM on 07/29/2011
Maybe if rich congressmen would pay their taxes we wouldn't be in this mess (cough cough)
03:22 PM on 07/29/2011
I was more disappointed when former house leaders didn't pay their taxes.
03:05 PM on 07/29/2011
"..we approach the Aug. 2 deadline to raise the $14.3 trillion debt limit..."

He disappointed about serving but not disappointed about the $14.3T debt...

THAT is what's wrong with Washington
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02:33 PM on 07/29/2011
"Democrats propose cutting waste and fraud in our expenditures while asking the wealthiest Americans and biggest corporations to give up some of their tax breaks and special deductions." Why not go after tax cheats while you're at it. But that would be a little to close to home.

Guess what Charlie, eliminating waste and fraud won't get it done. And the wealth already pay more than their share of taxes. It comes down to cutting spending. End of story. That is what we need to do and that is what we will do. Get used to it.
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HUFFPOST SUPER USER
Ebay Seller Len
03:00 PM on 07/29/2011
Top earners pay historical low interest rates. Mark Zukerberg and Warren Buffet pay a lower percentage of taxes than their secretaries.
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05:53 PM on 07/29/2011
Cite?? Show me one study demonstrating Zukerberg or Buffet pay a lower rate (percentage) on their taxable income than do their secrataries. See response to Tyler below. The rich pay twice thier prorata share based on taxable income (AGI). And 40 times their prorata share based on the number of returns filed.

You libs parrot this lie all the time as if it were true. Fact is, it is B.S.
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HUFFPOST COMMUNITY MODERATOR
Tyler-Durden
leading a revolution of one
04:29 PM on 07/29/2011
"the wealth already pay more than their share of taxes"

NO, THEY DON'T.
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05:39 PM on 07/29/2011
Ah, yes they do. The bottom 50% of tax returns (the poor) earn 12.26% of the AGI and pay 2.89% of the income tax. They pay 1/4 of their prorata share based on income. To pay their share, their taxes would need to increase 4 fold. The wealthy (top 1% of returns) earn 22% of the AGI and pay 40.5% of the tax, nearly twice their prorata share. To pay their share, their income taxes get cut in half. Based on tax data published by the IRS - 2007, latest numbers available.

What are your numbers? And don't lie to me.
12:55 PM on 07/29/2011
Just as I predicted, this will go right down to the wire - this way be can all be grateful for the crap they are going to do to us, while protecting their benefactors (wall st and the rich).
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Greyfox01
My shoe knows more than they do.
12:32 PM on 07/29/2011
Those who speculate in the crude oil markets think that higher fuel prices, including heating oil are justifited based on deliberate false rumors relating to "supply and demand". Dutch Shell Oil Company's second quarter profits were up 77%, or 110% during the first and second quarters. Exxon/Mobil second quarter profit rose by 41%. Those in the oil speculators market like Goldman Sachs, JP Morgan Chase, CitiCorp, and many of the oil companies themselves have driven crude oil price 63% above market value. Rex W. Tillerson, Chairman and Chief Executive Officer at Exxon/Mobil said in an Bloomberg interview that a barrel of crude oil should be selling at or about $60. At $60 a barrel for crude the national average gasoline price in the US would be in the area of $2.00, and that alone would give the consumer greater purchasing power.

If President Obama wants to address the speed bumps in the economy, he might want to investigate the QE2. One of the easiest way to give consumers a break at the gas pump would be to end QE2 this month. The price of Oil, priced in Dollars, would drop like a rock as the US Dollar strengthens if QE2 is suddenly stopped, and Gasoline prices also trading opposite a weak dollar would start dropping immediately at the pump as the US Dollar strengthens. The Federal Reserve is having a meeting this week and will be deliberating over the future of QE2.
12:17 PM on 07/29/2011
Rep Rangel is disappointed about al lot of things, but not the real fiscal insanity, which is the $14.3 trillion debt that continues to grow and grow. Both the Democrats and the Republicans caused this mess. Families need to spend within their means, and so does the government.
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HUFFPOST COMMUNITY MODERATOR
Tyler-Durden
leading a revolution of one
04:32 PM on 07/29/2011
NO. the corporations raking in record profits need to pay a more appropriate portion of the tax burden.

the money exists, it's just being hoarded by those who have too much already. the people with multiple homes need to be paying more than they do.
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gino618
12:07 PM on 07/29/2011
How much spending did the Democratic Congress authorize from 2006/2007 - 2010/2011???? In 3 years alone under Obama, our spending, deficit, and debt have skyrocketed beyond any yearly amounts under Bush or anyone before him. All under YOUR watch, sir. But rather than actually trying to fix the problem, here you are trying to pin the blame on anyone but yourself and your fellow Democrats. Certainly, many Republicans share in this blame, but your ridiculous attempt to avoid any responsibility and claim some moral high ground is laughable. Aren't you the same person who's taken up rent-controlled rental properties for your offices that could have gone to some of your struggling constituents? Aren't you the same person who neglected to pay certain income taxes? And you want to lecture others on 'responsibility'??? LOL Incidentally - do you even acknowledge the fact that our 'entitlement' programs that you claim are untouchable are the most expensive and out of control costs our government incurs?
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darquelourd
You Get What You Play For
12:17 PM on 07/29/2011
facts check: Bush deficit $5 trillion (the wars you know)

Obama deficit $1.4 trillion (mainly bailout)
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rysagr
whip me beat me just don't bore me to death
12:58 PM on 07/29/2011
lol facts?
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gino618
03:40 PM on 07/29/2011
The highest amount of Federal Deficit Spending under Bush was $458.6 billion. In 2009, Obama and the Dems had a spending deficit of $1.412 TRILLION, followed in 2010 by $1.293 TRILLION. The estimate for 2011 is $1.645 TRILLION. That is a 3 -4 times INCREASE in deficit spending under Obama. http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=200
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Greyfox01
My shoe knows more than they do.
12:58 PM on 07/29/2011
Total hogwash gino!

Bush's tax cut for the super rich, his war, and corporate welfare added 81% to the federal budget from 2000 to 2008. To date under Obama the budget is up by 41%. Also, entitlements are not the highest expense, it's the Pentagon budget at over one trillion $$$$$ ..... and by the way gino, Social Security is not part of the budget, it is paid for by payroll taxes that go into the SS trust fund that right now holds $2.5 trillion. If Congress hadn't been sucking off the interest all these years that fund would have over 4.5 trillion in it right now.
01:45 PM on 07/29/2011
I think you missed the line about it being a Democratic Congress under Bush's admin. Also, they voted in favor of the wars and stuff.
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gino618
03:45 PM on 07/29/2011
A tax CUT isn't an expense - only liberals think that way. The problem is that - even under Bush - spending went up along with those tax cuts. The greater problem is that the Democrats took the Bush-era spending and tripled-down on it in 2009 - 2010 - 2011. And if - as you say - that SS Trust fund holds 2.5 trillion, then WHY is the President claiming that they may not be able to send out SS checks? Either there is no money in the fund which means it's been robbed by our lawmakers, or there IS money in the fund, in which case Obama is lying and fear-mongering.
11:49 AM on 07/29/2011
Sorry Charlie.

You're wrong.

What WAS fiscal insanity was in the 111th Congress, where the Democrats had the Presidency, the House and Senate and yet they didn't pass a budget resolution, NONE of the authorization or appropriation bills.

http://en.wikipedia.org/wiki/111th_United_States_Congress

The Democrats had a chance to correct this budetary nightmare when they had all the levers of government, except the Judiciary, which is firmly in the hands of the right-wing bigots.

What's more you were chairman of the powerful tax writing committee in the House, Ways and Means, which had the RESPONSIBILITY to correct the revenue shortfall.

You were responsible.

The Democrats failed to be functioning party.

You have only yourselves to blame.
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drgrph
12:55 PM on 07/29/2011
F & F!
01:08 PM on 07/29/2011
Are you referring to the 111th congress where Republicans showed a historic level of obstruction to even simple federal appointments, and that used the filibuster to subvert the will of the people on a scale never before seen in history? The congress that gained the Republican party the moniker "The party of No"? Oh yeah it is. The 111th congress failed because Republicans gave up on trying to actually govern this country long ago. Now in true Republican style you are writing up your own revisionist history by acting like Democrats had free rein during this time when in fact the story of this congress was the brazen use of the filibuster to prevent American progress on nearly every issue.
01:19 PM on 07/29/2011
Tell your nonsense to the political neophytes.

BTW, thank you drgrph.

The Senate is an institution set up by the Constituion to run by majority vote or by quorum.

Not supermajority.

The Democrats used that as an excuse to do nothing.

And it was only an excuse.
11:35 AM on 07/29/2011
Well this is what happens when a ship has no captain. The leader ship failure from this White House is absolutely stunning.

But hey, let's blame Bush, let's blame the GOP, let's just keep pointing the crooked finger everywhere exept at the MIA president where it belongs. Does that make you feel better??
01:17 PM on 07/29/2011
I guess it's not fair to blame Bush even though he basically created 4/5ths of the deficit that Republicans are so upset over. And I guess it's not fair to blame the GOP even though they decided to imperil the world economy by attaching spending cuts, that they could never get through legislation, to the debt ceiling increase (something that was done 8 times without incident during the Bush administration); and pretty much resorting to blackmail to protect moneyed interests. I guess to you the fact that Obama has offered pretty much everything that the Repubs asked for at the beginning of the debate, and that it was rejected by idealogical Repubs is meaningless.
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philhellene
Far Left and Proud of It!
10:43 AM on 07/29/2011
Right-wing zealots have adopted a new level in political tactics. Unfortunately, we all can look forward to it happening again and again. Any important future issue that absolutely needs to be passed will now be held hostage to the juvenile antics of a group whose core philosophy is that "government is the problem".

Thank you Reagan for planting that little seed into the political psyche of the right. For that, you should be branded as the single most important cause of political dysfunction. An historian myself, I know that history itself will not be kind to you.
unique
Animal lover forever
11:18 AM on 07/29/2011
Go to directdemocracynow.org and do something about it.
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AlexNYC
Pumps dont work cause the vandals took the handles
12:01 PM on 07/29/2011
Reagan was the first president in our times to blatantly favor his corporate masters over the American public. I saw the obvious contempt for government during his run for the presidency, and I was shocked that the general public were buying his nonsense that the problem with the economy was government and not the corruptive influence of the rich and the corporations had over our elected officials. Ironically Reagan was one of them. Deregulation and tax cuts for the richest began us on a downward spiral that we have reached today. In today's Republican extremist climate, Reagan himself would be considered to leftist to run for national office.
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pa104inf
12:52 PM on 07/29/2011
Tired of blaming George W. so now you are blaming Reagan for our problems. Next you will be blaming President Grant for our problems.