Republicans Selling Out The Forgotten Taxpayer: $120 Billion – Stephen Moore Is Clear About This Bipartisan Betrayal….Again – Infuriating
Stephen Moore Explains with breathtaking clarity: Congress is expected to approve as early as today a $120 billion highway bill that compromises nearly every budget principle Republicans say they believe in.
it’s a bipartisan budget heist with billions of dollars of budget gimmicks that are likely to infuriate Tea Party activists and other fiscal conservative voters. In order to avoid confrontation with the Senate and to get the highway pork rolling by July 1, House Republicans caved to Senate Majority Leader Harry Reid on nearly every demand. READ MORE Stephen Moore WSJ 29 June 2012
Stephen Moore’s colleague Allysia Finley describes Harry Reid’s Pension Raid to fund the Student Loan Interest Rate Subsidy in which the House Republicans are complicit. READ MORE Allysia Finley WSJ 29 June 2012
Allysia Finley: “In 2007 Congress reduced interest rates to 3.4% from 6.8% on subsidized Stafford loans, which allow students not to accrue interest while they are still in school. The below-market rates were phased in over five years and expire this Sunday unless Congress acts to extend them. Republicans don’t want to be blamed for letting the interest rates rise, but also don’t want to run afoul of the Tea Party by sanctioning more spending. Hence they’re demanding that an extension be paid for without hiking taxes.”
HARRY REID’S THREE CARD MONTE (REPUBLICANS ARE THE SHILL)
“Enter Mr. Reid, who wants to pay for the student loans extension by increasing premiums on companies insured by the federally-sponsored Pension Benefit Guaranty Corporation, which takes over pension plans of companies that go belly up. Raising premiums isn’t a bad idea per se. The agency’s unfunded liability has soared to $26 billion—the highest in its 37-year history—since more insolvent companies are loading their pension plans on the insurer. Without a significant increase in premiums, the PBGC could require a taxpayer bailout. The problem with Mr. Reid’s plan is that the premiums would go toward subsidizing student loans rather than propping up the insurer.
The Nevada Democrat is also proposing to raise $5 billion by letting corporations discount their pension liabilities using higher rates than are allowed by existing law. This would reduce their required pension contributions, which are tax-deductible, and increase their profit margins. Fewer tax deductions and larger profits would bring in more revenues. But this plan too is problematic.”