S&P Downgrade 8/26/11

On August 6th I sent my thoughts on the Standard & Poor's downgrade of America's credit rating to the editor to The Lima News. They apparently couldn't find room for it, so I thought I would share it with you. Why did Standard & Poor’s downgrade the debt rating of the United States? In their release they say: “Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act.” They further say that if the tax breaks for millionaires and billionaires were allowed to expire as they are scheduled to at the end of 2012, they could improve their rating. According to the Center on Budget and Policy Priorities the Bush tax cuts plus the wars in Iraq and Afghanistan will account for half our total debt by 2019 if nothing is done. They will have put on 10 trillion dollars of the 20 trillion dollars we would owe by then. The greater part of that is the tax cuts. Indeed if we just allowed the Bush tax cuts to expire the debt would no longer be rising as a percentage of GNP. The wealthy have a larger percentage of both wealth and income than ever before in modern times and yet enjoy the lowest taxes in more than sixty years. This was supposed to help the economy. How well has that worked? Wake up people! Congress is trying to squeeze money out of the poor when some millionaires are paying lower percentages of their income than their secretaries do. It is time and past time to repeal the Bush tax cuts and to stop giving special tax breaks to oil companies.