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December 14, 2010

Prevent Hostage-Taking: Add Debt Ceiling To Tax Deal!

-- by Dave Johnson

This post originally appeared at Campaign for America's Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF.

If you like your Social Security, Medicare, Medicaid, courts, roads, trains and the rest of what government does for We, the People, then you should pay attention to this. Early next year the Republicans will demand severe cuts to everything or they will allow the country to default on its debt. They mean it and they are planning for it. The coming "debt ceiling" fight can be averted by increasing the debt ceiling as part of this tax-cut deal.

A week ago, in Stop The Next Bad Deal: The Debt Ceiling Fight, I wrote about this,

If you think the tax cut fight led to a bad deal… it may also lead to an expectation by conservatives they will finally be able to cut, gut or shut the government in the coming fight over raising the debt ceiling. The President and Democrats in Congress should take steps now to keep them from thinking they can win that.

Early next year the country’s debt ceiling has to be raised – or else. Conservatives are likely to push for “or else” and hold the “full faith and credit of the United States” hostage to their demands to gut the middle class and democratic government.

Here is what Democrats can do: add the debt ceiling increase to this tax-cut deal or say no deal. Adding huge amounts to the deficit in this tax-cut bill is setting the Republicans up to take hostages again. But adding the debt ceiling increase to this deal prevents them from doing that.

Democrats in the House, at the maximum point of leverage, should add this to their demands for passing this tax-cut deal.

The Next Hostage-Taking Opportunity

It's coming for sure. Conservatives see the debt ceiling fight as an opportunity to cut, gut or shut the government and are planning for it. They are planning to create a crisis -- possibly the worst the country has faced -- to force panic and then impose severe "Shock Doctrine" reforms. Here's what The Hill is reporting:

Sen. Bob Corker (R-Tenn.) said Tuesday he's hoping to assemble a bloc of senators who will demand tax and spending reforms before agreeing to vote to raise the U.S. debt ceiling next year.

The very idea that they might not vote to increase the debt ceiling -- and allow the US government to default -- tells you what is coming. But if you want more proof:

"The debt ceiling, obviously, is going to have to be increased if we're not going to default, so the question is, what do we get in exchange for that, and what kind of fiscal controls?" said Rep. Paul Ryan (R-Wis.), the incoming chairman of the House budget panel, last week on Bloomberg Television.

They are going to do this. They are going to take the biggest hostage ever. You can stop this. Democrats in the House are at the maximum leverage point. You can stop this. You can literally save the country by demanding the debt ceiling be increased in exchange for this tax-cut deal and the huge amount of debt it adds.

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Posted by Dave Johnson at December 14, 2010 4:18 PM


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