Deal?

Last week, we were wondering if we could completely avoid "The Fiscal Cliff". Earlier today, news broke that the House will reconvene on Sunday. So is a deal finally in the works?

Not so fast. Even as the House returns, Speaker John Boehner (R-Agent Orange) still can't really get it together. Basically, he's now throwing a temper tantrum and demanding that Harry Reid provide him a "political bailout". And if you're still wondering why this is, read what Steve Kornacki posted this morning.

The twist in the Obama-era is that some of the conservative backlash has been directed inward. This is because the right needed a way to explain how a far-left anti-American ideologue like Obama could have won 53 percent of the popular vote and 365 electoral votes in 2008. What they settled on was an indictment of George W. Bush’s big government conservatism; the idea, basically, was that Bush had given their movement a bad name with his big spending and massive deficits, angering the masses and rendering them vulnerable to Obama’s deceptive charms. And the problem hadn’t just been Bush – it had been every Republican in office who’d abided his expansion of government, his deals with Democrats, his Wall Street bailout and all the rest.

Thus did the Tea Party movement represent a two-front war – one a conventional one against the Democratic president, and the other a new one against any “impure” Republicans. Besides a far-right ideology, the trait shared by most of the Tea Party candidates who have won high-profile primaries these past few years has been distance from what is perceived as the GOP establishment. Whether they identify with the Tea Party or not, conservative leaders, activists and voters have placed a real premium on ideological rigidity and outsider status; there’s no bigger sin than going to Washington and giving ground, even just an inch, to the Democrats. [...]

This is exactly what the Tea Party mindset produces. For one thing, the House GOP conference (and to a lesser extent, the Senate GOP) contains no shortage of Tea Party true-believers – men and women who embody the spirit of the movement and have no qualms about going to war with party leadership if they believe their principles are at risk. And they are backed by a conservative information complex – media outlets and personalities, commentators, activists and interest group leaders – ready to cast them as heroes in any fight with “the establishment.”

All of this is more than enough to instill real fear in Republicans on Capitol Hill who aren’t true believers – but who do like their jobs and want to keep them. McConnell falls in this category. Boehner evidently does too. And so do many, many other Republicans who don’t want to look back and regret the day they cast a vote that ended their careers. The fact that the Tea Party, as a literal entity, seems to be dying is actually a sign of how successful it’s been. Its spirit now rules the Republican Party.

Long story short: Boehner wants to keep his gavel. And he fears any "unsavory deal-making" with Democrats will lead to his political demise. Yet if he lets America fall off "The Fiscal Cliff", he may still face political demise. So right now, he wants some kind of "Deus ex machina" to swoop in and save him.

And right now, rational Americans just want to avoid an unnecessary "double-dip recession". So will there be a deal? That may very well depend on whether Harry Reid (or really anyone, for that matter) can convince John Boehner that it's best for everyone that he avoids "cliff diving" at any and all costs. But so far, it looks like Boehner is putting petty politics above any kind of necessary policy solution.

We're All California Now.

Does this sound familiar?

But really, this budget is filled with worrisome cuts. Deep cuts to higher education that will force higher taxes tuition for students. Delays to K12 funding that will challenge our teachers and hurt our next generation. And, as noted already, some very real cuts to law enforcement. As Sen. [ ] has pointed out several times in the press, we are now at one of the most austere budgets in a generation or more.

But even with this austerity, we have not arrived at anything representing stability. There are a plethora of reasons for that, but the biggest of all of these is clearly [ ] insistence on a preference for income and sales taxes over the more stable property tax. Sure, this budget includes the [ ] tax provisions championed by [ ] and [ ], but these revenue sources are hardly sufficient to overcome the loss of the taxes at the end of the month.

As the dominoes fall from this budget, expect instability to continue to raise its head. Already several counties have discussed applying a local tax to recover some of the cuts from the loss of the [ ] tax. Expect such a measure to appear to show up as soon as the November ballot in [ ], and perhaps elsewhere next year.

These funding levels themselves are unsustainable for the long haul. Eventually things fall apart. Infrastructure crumbles, the mentally ill are exposed through homelessness and crime, and the state becomes a less welcoming place for rich and poor alike. And when you talk about business friendly climates, stability is always at the top of the list. For so long we have been able to balance the act through super glue, chewing gum and duct tape. And so it goes this year, with the "triggers" being this year's duct tape.

I could be talking about the federal debt hostage debacle that's still playing out today, or I could be talking about the state budget madness that ended in yet another insufficient, kick-the-can-down-the-road-again compromise. Guess what? This was actually California's budget, and in far too many ways what has happened in California in the last 30 years refused to stay in The Golden State. Rather, the radical right has used its successful implementation of constant paralysis and "austerity" as a blueprint for infecting other states... And now, the federal government as well!

Trust me, I lived through it. It's a very familiar feeling to me. The radical right strongarms Republicans into silly "no tax pledges" that lead to not-so-silly political "hostage crises" that lead to government shutdown, and ultimately disgusting "bargains" that throw seniors and disabled onto the streets, make the working poor even poorer (and perhaps out of work, too), bleed public education dry, and ultimately make lousy economies even worse. Time after time, this is what a crazed minority causes in California. And now, it's going national.

When anyone asks why California politics is so dysfunctional, remember to provide the real answer. Oh, and make sure to let one know that this is what will happen to Nevada and the nation as well if we allow the "tea party" extremists to amass any more power.

Am I disappointed with this debt deal? You betcha. Do I wish for more and better progressive Democrats to fight harder against this nonsense? Of course. However, I refuse to ignore the real cause of this crisis. I lived in California far too long to miss the real culprits behind this garbage, and I know the only way to stop it is to stop allowing these reactionary radicals to become any more powerful.

Republicans Stand Tall Against... REPUBLICAN Ideas!

When did this...



Become this?





When a Democrat became President?

Of course, Boner's capitulation to crazy teabaggers died in The Senate last night... And Boner is looking increasingly irrelevant in this whole debt ceiling fiasco.

The events of the past 24 hours have been beyond bizarre. We have, in effect, been conducting a legislative thought experiment around the question, “What is the least conservative debt-ceiling bill that can pass without Democratic votes in the House?” A few minutes ago, we learned the answer. But the answer doesn’t matter.

There is exactly one question worth asking now: What is the debt-ceiling compromise that can win the support of the House, Senate and the White House? That means winning the support of Democrats as well as Republicans. That’s what every effort in every chamber should be oriented toward. Instead, Boehner has spent the past two days wasting his political capital assembling an irrelevant coalition of conservatives. [...]

To govern is to compromise. And when you’re in charge, you have to govern. [Emphasis mine.] [...]

Lately, Boehner has not been governing. After he failed to pass a conservative resolution to the debt crisis without Democratic votes, he should have begun cutting the deals and making the concessions necessary to gain Democratic votes. That, after all, is what he will ultimately have to do. It’s what all this is supposed to be leading up to.

But Boehner went in the opposite direction. He made his bill more conservative. He indulged his members in the fantasy that they wouldn’t have to make compromises. It’s as if Pelosi, facing criticism for dropping the public option, had tried to shore up her support by bringing a single-payer health-care bill to the floor. Even if that would have pleased her left wing, what good would it have done her? Her job was to prepare her members to take a vote that could lead to a successful outcome.

This is what a few crazed Congressional Republicans have caused.

Visit msnbc.com for breaking news, world news, and news about the economy

So what are we supposed to do? Throw ourselves into a likely Constitutional Crisis? Play with platinum coins? How on earth can the supposedly greatest nation on earth conduct its official business like this? Now wonder why the rest of the world is either laughing at us and looking at us with total disgust and disdain.

So why didn't teabaggers object to George Bush's reckless spending on billionaire (tax cut) bailouts, bank bailouts, wars in Afghanistan and Iraq, and pharmaceutical industry bailouts (Medicare Part D as passed in 2003)? And why didn't teabaggers object to Ronald Reagan raising the debt ceiling twice as fast as Barack Obama has? And why didn't teabaggers demand an illogical and irrational "Balanced Budget Amendment" (that never accounts for recessions, natural disasters, wars, etc.) during any Republican Presidency?

So get ready for it. I'll have to repeat myself again. This is madness!

And get ready to do it again.

Joe Heck: Email, Phone (202) 225-3252

Dean Heller: Email, Phone (202) 224-6244

These Republicans need to stop flip-flopping on their own fiscal policy and stop letting crazed teabaggers hold America hostage. They need to raise the debt ceiling and do so without threatening Social Security, Medicare, Medicaid, and/or any other cuts to the vulnerable who can least afford it.

The Facts on Sharrontology & Social Security

(Btw, as always, Desert Beacon gets even wonkier with more facts on Social Security and Sharrontology's factless drivel.)



So now, Sharrontology Obtuse Angle claims she isn't really for abolishing Social Security... Even though she is. And the media are chattering away about why we're not seeing more "open dialogue on reforming Social Security". Sound familiar? It should. George Bush tried this exact same tactic in 2005, and the corporate media were cheerleading it on until the waves of protests all over the country killed the proposal...

Or did it? It seems Sharrontology wants to revive it. And like Bush in 2005, she's using the same ol' "It's going broke!!!!" scare tactics to goad us into letting her throw starving seniors onto the streets to "fend for themselves" like they should in a "free market".

So here's the problem. Obtuse Angle isn't giving us the full story. Social Security is NOT "going broke".



I know, I know. It's not as dramatic as the "Oh noezzz, Social Security is BROKE!!!!" storyline you hear in the corporate media and you see parroted by radical right GOoPers like Sharrontology. But let's face it, there's no real "CRISIS!!!!" here.

And looking at the long-term funding issues, there are simple solutions that can be used, such as changing the cap on the Social Security tax (currently no income over $97,000 per year is taxed), simply stopping the constant raids into the Social Security Trust Fund (to pay for things like the Bush Tax Cuts and the Iraq War), and rethinking our budget priorities (hint: our military budget is over three times the amount of our Social Security budget). Again, I know this isn't dramatic enough for the media to salivate over like the discredited "Social Security MUST be reformed (read privatized)!!!!" storyline. But hey, isn't it better to look at real solutions to the real problems rather than get all dramatic over nothing?

And in Sharrontology's case, her favored "solution" would cause far more problems if implemented. You know how she and her teabagger army whine and scream and complain about "bailouts", even if they're nonexistent? Well, how do you think state governments would cope if Social Security were privatized, millions of seniors didn't rack up the savings Sharrontology promised they would, and the State of Nevada was left holding the bag for the feds' failure in ruining Social Security? Guess what we'd need: A BAILOUT!! Nevada would need at least $3.4 billion to fix the privatization hot mess, and the overall federal bailout to states would cost at least $601 billion!

Talk about Sharrontology's folly! And this is just the start...



You really want her directing your future retirement?

Reno Facing Massive Deficits This Year & Next

Uh-oh...

Reno has a $3.5 million shortfall in the current $180 million general fund budget and can expect another gap of at least $9.35 million in the budget for the year that starts July 1, the city council learned Wednesday.

After getting the bad news, Mayor Bob Cashell asked for one or two council members to be involved in building the budget rather than the council getting a report few days ahead of a meeting.

“This next year is going to be ugly,” Cashell said.

The anticipated 2010-11 shortfall would include a property tax revenue decline of about $2½ million, with the rest from revenue sources used in 2009-10 that won’t be available again.

“The funds just won’t be there,” Jill Olsen, interim finance director, said of money in risk management, contingency, health insurance and workers compensation accounts.

Now already, the working people have had to forego such "luxuries" as a small cost of living increase...

This year, Reno Police Protective Association members agreed not to take a cost-of-living raise in 2010-11, and other employees gave up raises or other benefits equal to their 4.2 percent raises this year.

Of the $3.5 million shortfall in 2009-10, $1.5 million is expected to be needed to pay retiring firefighters. Under their contract, they are paid for up to 79 days of unused vacation.

More than 57 firefighters have more than 25 years service. Tim Alameda, interim fire chief, said many may retire soon.

To erase part of the $3.5 million shortfall, Olsen said she will use $600,000 from the parks department and $600,000 set aside some years ago for a Reno emergency command center.

Already, hard working public servants have to pay. But what about the big developers always snatching taxpayer funded subsidies? What about the elected officials always rewarding themselves, even when they haven't done much of anything? And what about the state stopping its policy of raiding Clark and Washoe County funds when the state wants to artifically "close the deficit"?

Again, this is the result of Nevada promoting further economic injustice by raiding local governments and failing to invest in its infrastructure while continuing to line the pockets of the ultra-rich. Again, when will we learn from California's failures? And when will we stop ourselves from becoming the next California-style economic catastrophe?

It may be Reno now, but wait until crises like this spread all over the state... Oh wait, it's already happening.

Really, I Just Told You So.

Seriously, did you really think the Nevada Development Authority would get away with this?





Or especially this... Well, what really happened in Hollywood that day? What was the point of this?



Anyway, it didn't take long for none other than my old State Assembly Member to launch this ad campaign in response:



Oh yes, and they're also returning the favor by running ads here:



How sad that these two states are fighting over crap. We can't talk about how both California and Nevada are plagued by insanely regressive tax structures, bizarre and dysfunctional "ballot box budgeting", and a deeply disturbing lack of investment in the infrastructure necessary (like education, health care, and transportation) for a state to ultimately survive and thrive. I'm frankly surprised that Canada hasn't (yet) stepped in to try to steal businesses away from both states!

Still, it just goes to show that businesses ultimately look for more than just "NO TAXES!" for long-term success. They want an educated workforce. They want a good quality of life. They want civilization, and we all know that we ultimately have to pay something to get that civilization.

No Taxes! No Growth?

Yep, Florida may finally face the first population decline in decades. Yes, THAT Florida... The Florida with no income tax. And the Nevada "Bidness Lobby" really thinks they can still magically lure companies from all over because "no one pays taxes here"?

It's the infrastructure, stupid. ;-)

Again, I Told You So.

(Btw, The Ventura Star also has a great editorial today debunking the myths unfortunately being perpetuated by the NDA.)

I knew this would happen. Why won't the Nevada Development Authority think up real ways to promote Nevada instead of this crap? Our neighbors to the West really aren't happy, and they're calling the NDA out on their BS.

Our neighbors to the East are substantially different to us. They have different goals, and a different world view on how we should treat our citizens, how we should educate our children, and what kind of services we should provide. Usually, it's no big deal. They do their thing, we do ours.
Of course, times are different now. For a long time, we have had many advantages that come from a more progressive government: better educated workers and better services available to businesses. It's hard to claim much of an advantage in that realm now that we've gone ahead and slashed pretty much everything.

And now, the Nevada Development Authority is bringing their anti-tax message to California, trying to pick off California businesses. To this point, there is little evidence that companies are leaving the state because of the taxes, and it could be argued that any businesses that are leaving, are just as much due to lack of services.

But this works really, really well for the CalChamber [California Chamber of Commerce]. It sets them up so well, you might even begin to wonder if the Chambers of Commerce all across the country are coordinating a race to the bottom. One state Chamber of Commerce (or in this case, Development Authority) tosses a little stink bomb like this little ad into another state, and the recipient state gets to argue how taxes are too high.

Great! Thanks, NDA! You may end up f**king up California even more by giving "Arnold Antoinette" & his big corporate buddies ammo to block the tax reforms needed to fix that state. And by the way, doesn't the NDA realize that we need California tourists to boost our tourist-driven Nevada economy?

Cheese louise, and these boneheads really think they're helping us?

Kiss Your Assets Goodbye?

(Also at OC Progressive)

I must say it's been interesting seeing "what happens in Vegas" in the last month. However, I don't really get this.

Are California’s lawmakers pigs?

A new video campaign designed to draw businesses unhappy with California to relocate to Southern Nevada portrays lawmakers as morphing into pigs.

It is being launched by Nevada Development Authority, which has tried other ad campaigns in the past with the same goal, but not featuring the actions of the California Legislature.

The NDA says it’s sure many California businesses are considering relocation due to the state's current troubles.

The campaign stresses that business owners pay no corporate or personal income tax in Nevada and have much lower workers' compensation rates.

According to The Las Vegas Sun, our local ABC station (KABC 7) has already refused to run any of the Nevada Development Authority ads. (Btw, The Sun also has all the ad videos should you want to watch them.) I wouldn't be surprised if more California stations also turn down these ads. While it may be a great PR stunt to lure businesses from one troubled state to another, it does both a great disservice.

Why? It continues to push the false meme of "overtaxed businesses needing to flee California". It's offensive enough for the NDA to call California lawmakers "pigs" and "monkeys", but I'm even further offended by their lack of knowledge on the real reasons why the state is failing. All they had to do was read here or Calitics to see that corporate tax loopholes, property tax laws that favor big corporations, 2/3 budget rules, and other fiscal deforms are the culprits bringing the state down! Trust me. I just moved here from California, so I know what's really wrong with the state.

And frankly, they're not doing Nevada a favor, either. Yes, I said it. Nevada is also victim to a failed tax structure that depends on regressive sales taxes (especially in times like these with casino revenue down) as the big corporations enjoy even more tax loopholes and the mining industry pays virtually no taxes! Nevada has suffered massive budget woes this year, so it baffles me why the state development agency would want to continue on this failed path by begging businesses to come here and perpetuate what's throwing us into fiscal chaos.

So kiss my assets goodbye? Nope, more like I'd rather not kiss a fool by buying into this unsustainable model of "no bidness taxes". It doesn't work in California and it doesn't work in Nevada, and both states really need to rethink their fiscal thinking.

I Told You So.

See why huge cuts to the social safety net aren't the best way for a state to balance its budget? Just take a peek at what's happening next door.

On one hand, we learned that the Los Angeles Economic Development Corp. expects per capita personal income in Orange County to drop for a second consecutive year as unemployment continues to rise and retail sales continue to fall. And on the other hand, OC home foreclosures are expected to continue rising. Basically, Orange County doesn't look to be exiting this recession quite yet.

It's just too bad that we can't expect more stimulus to help us soften the blow. Thanks to Arnold's "stimulus killer" budget, most of the economic benefits from the federal stimulus that are helping the rest of the country bottom out and turn around will be offset by the draconian state budget cuts. So once again, California will be losing out at the very least... Or may even hurt recovery efforts for the rest of the nation.

And unfortunately, the "bidness lobby" here in Nevada still doesn't get it. No matter how much they try to steal business from California by telling them how "high" taxes are, those of us who've seen the budget crisis there firsthand know what the problems really are. And honestly, same goes for Nevada.

So will we have enough legislators (and hopefully a sane Governor, too!) in office in 2011 to realize all this?

So This Health Care Reform Is "Anti-Business"?

Viola! Who knew that Colorado Congressman Jared Polis' (CO-02) would have the answer? I found the reason behind Dina Titus' vote at his web site! I also spoke with someone close to "Team Titus" last night who seemed to confirm this. Dina signed onto this letter opposing the "millionaires' surtax" that would tax income above $1 million at 45%.

Wait... Huh?! Oh, but they're claiming that "this will hurt small businesses". Oh jeez, how many small business owners are really in this top bracket of very high-income earners?

And really, look at our past and notice how we had similar "millionaires' surtaxes" that worked. Why shouldn't they pay their fair share? And why shouldn't those proceeds go toward universal health care?

I can understand that otherwise good Congresscritters like Jared Polis and Dina Titus don't want to cause any more pain to small businesses. But come on, it doesn't help small businesses that they pay so much in health care costs! Meanwhile, 96% of small businesses will see no new taxes under this proposal.

So hopefully, someone can explain this to Polis and Titus. They say they support universal health care. So how do we pay for it? Why not tax the very highest income earners to help pay for it? It's not really "anti-business".