There are so many things wrong with that I have no idea where to start. First off, no matter what, the Simpson-Bowles recommendations had no chance of winning republican support because it contained tax increases, so no point in even discussing that. Obama has certainly failed to lead, but this no tax position is like saying I have debt equivalent to 7 times my yearly salary and every year my debt goes up the equivalent of 60% more than what I make. I can safely cut that spending so that I am only spending 20% more than I make, but getting a second job is out of the question. Who would want to lend someone like this money.
Now, as for what the cuts they have decided to do will do to the economy. They are all coming from middle class programs. Student loans, money for schools, and potentially social security and medicare. This causes the middle class to realize that they need to save more for retirement, their kids schools, etc. So, basically, you have rich people who save and use their money to make more money, and a middle class that already can't afford much needing to save more. That doesn't do great things for an economy that is defined by consumer spending. We are pretty much all fucked at this point. I don't believe anything short of massive tax reform will change anything, and it absolutely must create more revenue. We take in $2.1 trillion in tax revenues and spend $2.2 trillion on defense, social security, medicare and medicaid. An additional $1.6 trillion is spent on extra stuff like roadwork, education, and the EPA. Getting rid of the EPA and education is not the answer. Our kids are stupid and I do not trust the corporate America to regulate itself wrt to the environment. Regulation did help cause this problem, but it was a lack or regulation on Wall street, not to much. Remember what ARMs did to the housing industry?
As for taxes, they need to drive behavior. I am all for a soda tax, because people who drink soda, whether it is diet or otherwise, are unhealthy. Any tax breaks that go to companies, should be a result of keeping employment here. Basically, the government is just handing them money hoping they invest here, and they are not.



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