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GOP Increasingly Ready for Government Shutdown

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The appetite for a government shutdown is growing among Republicans, who had shied away from one during the debt and spending fights in the last Congress but now say one may be needed.

Several high-profile senators this week began laying the groundwork for a shutdown, saying that it may be necessary in order to restore “fiscal sanity” on the federal budget.

“I think the last time we saw a shutdown, the fact that Republicans were willing to stand together — on fiscally conservative principles — ended up producing a result that was responsible and that benefited the country and that ultimately produced enormous economic growth,” said Sen. Ted Cruz, a freshman Republican from Texas.

Fellow Texan Sen. John Cornyn, the second-ranking Republican in the chamber, wrote an op-ed in the Houston Chronicle on Friday saying a partial shutdown may be needed to show Congress is serious about cutting spending.

“It may be necessary to partially shut down the government in order to secure the long-term fiscal well being of our country, rather than plod along the path of Greece, Italy and Spain,” he wrote.

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Policy Wonk With No Military Experience on Shortlist to be 1st Female Defense Secretary

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It’s a long way from playing volleyball at Beverly Hills High School to being the most powerful woman in Washington, but Michele Flournoy could cap such a remarkable journey if President Obama selects her as Defense secretary.

Flournoy, little known outside the world of military policy, is on the shortlist to lead the Pentagon in Obama’s second term. She would be the first woman in that role.

An inveterate policy wonk who first worked in the Pentagon under President Clinton and later co-founded a respected think tank, Flournoy, 52, has spent two decades climbing to the top of Washington’s notoriously male-dominated national security establishment, winning the admiration of military officers and politicians from both parties even as she remained out of the spotlight.

Although a child of Hollywood — her father was a TV cinematographer, her mother a onetime theater actress — she long ago abandoned Los Angeles for the distinctly unglamorous world of defense policy. She never served in uniform but has been at the center of her generation’s most important debates over the future of the U.S. military, from arms control in the Reagan years to the counterinsurgency strategies employed in Iraq and Afghanistan.

When Obama took office in 2009, Flournoy returned to the Pentagon in the department’s No. 3 position — undersecretary of Defense for policy — but resigned last February, saying she wanted to spend more time with her three children.

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New York Times: Tax Code May Be the Most Progressive Since 1979

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WASHINGTON — With 2013 bringing tax increases on the incomes of a small sliver of the richest Americans, the country’s top earners now face a heavier tax burden than at any time since Jimmy Carter was president.

The last-minute deal struck by the departing 112th Congress raised taxes on a handful of the highest-earning Americans, with about 99.3 percent of households experiencing no change in their income taxes. But the Tax Policy Center estimates that the average family in the top 1 percent will pay a federal tax rate of more than 36 percent this year, up from 28 percent in 2008. That is the highest rate since 1979, at least.

By some measures, the tax code might now be the most progressive in a generation, tax economists said, while noting that every American is paying a lower burden currently than they did then. In fact, the total federal tax rate is still vastly lower for the very rich than it was at any point in the 1940s through 1970s. It has risen from historical lows, but is still closer to those lows than where it was in the postwar decades.

“We made the system more progressive by raising rates at the top and leaving them for everyone else,” said Roberton Williams of the Tax Policy Center, a research group based in Washington. “The offsetting issue is that the rich have gotten a lot richer.”

Indeed, over the last three decades the bulk of pretax income gains have gone to the wealthy — and the higher up on the income scale, the bigger the gains, with billionaires outpacing millionaires who outpaced the merely rich. Economists doubted that the tax increases would do much to reverse that trend.

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The Fiscal-Cliff Mirage

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The politics of the “fiscal cliff” deal is debatable: On the one hand, Boehner got the “Bush tax cuts” made permanent for most Americans; Obama was forced to abandon his goal of increasing rates for those earning $250,000. On the other, on taxes Republicans caved to the same class-warfare premises (the rich need to pay their “fair share”) they’d successfully fought off a mere two years ago; while on spending the Democrats not only refused to make cuts, they refused to make cuts even part of the discussion.

Which of the above is correct? Who cares? As I said, the politics is debatable. But the reality isn’t. I hate to keep plugging my book After America in this space, but if you buy multiple copies they’ll come in very useful for insulating your cabin after the power grid collapses. At any rate, right up there at the front — page six — I write as follows:

“The prevailing political realities of the United States do not allow for any meaningful course correction. And, without meaningful course correction, America is doomed.”

Washington keeps proving the point. The political class has just spent two months on a down-to-the-wire nail-biting white-knuckle thrill-ride negotiation the result of which is more business as usual. At the end, as always, Dr. Obama and Dr. Boehner emerge in white coats, surgical masks around their necks, bloody scalpels in hand, and announce that it was touch and go for a while but the operation was a complete success — and all they’ve done is applied another temporary band-aid that’s peeling off even as they speak. They’re already prepping the OR for the next life-or-death surgery on the debt ceiling, tentatively scheduled for next Tuesday or a week on Thursday or the third Sunday after Epiphany.

No epiphanies in Washington: The Congressional Budget Office estimates that the latest triumphant deal includes $2 billion of cuts for fiscal year 2013. Wow! That’s what the government of the United States borrows every ten hours and 38 minutes. Spending two months negotiating ten hours of savings is like driving to a supermarket three states away to save a nickel on your grocery bill.

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Obama Sends Warning Shot to Republicans on Debt-Ceiling Increase

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President Obama on Saturday sent a cautionary note to GOP leaders ahead of the looming debt-ceiling debate, warning the Republicans that anything but a timely hike in the nation’s borrowing cap represents a “dangerous game” that threatens the economy both at home and abroad.

In his weekly radio address to the country, Obama urged GOP leaders to support a drama-free increase in the debt limit, and tackle the issues of spending, revenues and entitlements in a separate context.

“As I said earlier this week, one thing I will not compromise over is whether or not Congress should pay the tab for a bill they’ve already racked up,” Obama said from Honolulu, Hawaii, where he’s vacationing. “If Congress refuses to give the United States the ability to pay its bills on time, the consequences for the entire global economy could be catastrophic.

“The last time Congress threatened this course of action, our entire economy suffered for it,” he added, referring to the protracted debt-ceiling debate in 2011. “Our families and our businesses cannot afford that dangerous game again.”

The debate over raising the nation’s debt ceiling is shaping up to be the next big, partisan fight in a string of high-stakes budget battles that are threatening to consume most of the political oxygen in the early stages of the 113th Congress. The Treasury Department reached its $16.4 trillion debt ceiling on Monday, but the agency has said it can shuffle funds to pay its obligations for roughly two months, setting the stage for a showdown as March approaches.

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Video: How Corporate Tax Credits Got Into the ‘Cliff’ Deal

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The “fiscal cliff” legislation passed this week included $76 billion in special-interest tax credits for the likes of General Electric, Hollywood and even Captain Morgan. But these subsidies weren’t the fruit of eleventh-hour lobbying conducted on the cliff’s edge — they were crafted back in August in a Senate committee, and they sat dormant until the White House reportedly insisted on them this week.

The Family and Business Tax Cut Certainty Act of 2012, which passed through the Senate Finance Committee in August, was copied and pasted into the fiscal cliff legislation, yielding a victory for biotech companies, wind-turbine-makers, biodiesel producers, film studios — and their lobbyists. So, if you’re wondering how algae subsidies became part of a must-pass package to avert the dreaded fiscal cliff, credit the Biotechnology Industry Organization’s lobbying last summer.

Some tax lobbyists mostly ignored the August bill “because they thought it would be just a political document,” one K Streeter told me. “They were the ones that got bit in the butt.”

Here’s what happened: In late July, Finance Chairman Max Baucus announced the committee would soon convene to craft a bill extending many expiring tax credits. This attracted lobbyists like a raw steak attracts wolves.

Former Sens. John Breaux, D-La., and Trent Lott, R-Miss., a pair of rainmaker lobbyists, pleaded for extensions on behalf of a powerful lineup of clients.

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Obama Wants to Force Military Chaplains to Violate Their Religious Beliefs

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President Barack Obama called a conscience clause for military chaplains in the National Defense Authorization Act “unnecessary and ill-advised.”

The NDAA provision ordered that no member of the armed forces may require a chaplain to perform a rite or ceremony that violates the chaplain’s beliefs, and that chaplains may not be disciplined for refusing to perform such a ceremony.

The provision, which was introduced by now-former Missouri Rep. Todd Akin, was a response to Obama’s 2011 repeal of the “don’t ask, don’t tell” policy.

Religious liberty advocates and chaplains worried that they may be required to violate their consciences by administering sacraments or officiating marriage ceremonies to gay service members, which would be contrary to some religious traditions, including those of the Catholic Church.

“The Armed Forces shall accommodate the beliefs of a member of the armed forces reflecting the conscience, moral principles, or religious beliefs of the member and, in so far as practicable, may not use such beliefs as the basis of any adverse personnel action, discrimination, or denial of promotion, schooling, training, or assignment,” the bill read.

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Egyptian Mag Confirms Brotherhood Infiltration of White House

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Effectively affirming the concerns of five much-maligned Republican House members and the evidence presented in an investigative book, an Egyptian magazine claims six American Muslim leaders who work with the Obama administration are Muslim Brotherhood operatives who have significant influence on U.S. policy.

Egypt’s Rose El-Youssef magazine, in a Dec. 22 story, said the six men turned the White House “from a position hostile to Islamic groups and organizations in the world to the largest and most important supporter of the Muslim Brotherhood.”

The Egyptian article was translated and reported by the Investigative Project on Terrorism, or IPT.

IPT said that while the story is largely unsourced, it is significant because it raises the issue to Egyptian readers.

The article names Arif Alikhan, assistant secretary of Homeland Security for policy development; Mohammed Elibiary, a member of the Homeland Security Advisory Council; Rashad Hussain, the U.S. special envoy to the Organization of the Islamic Conference; Salam al-Marayati, co-founder of the Muslim Public Affairs Council, or MPAC); Imam Mohamed Magid, president of the Islamic Society of North America, or ISNA; and Eboo Patel, a member of President Obama’s Advisory Council on Faith-Based Neighborhood Partnerships.

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Day Traders: How Congress, Wall Street and the Media Traded America’s Future for the Next Short Term Fix

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If someone had woken you from a dead sleep 20 years ago and asked what the Republican Party stood for, you would’ve had no trouble answering: Fiscal restraint, a strong national defense and lower taxes. Those were the three pillars of the GOP. The party’s brand was clear. Voters understood it, and many approved. In the days before Obama, Republicans won seven out of ten presidential elections.

Things have changed for the muddier. Scratch the surface and you’ll find there is no longer a consensus among Republicans on foreign policy. Fiscal restraint? Years of earmarks, record deficits and at least one new federal entitlement under Republican congresses make that idea a bitter joke.

Of the three principles that have united the party since Reagan, only taxes remain. Republicans have been able to claim — sincerely, and with continuing success at the ballot box — that they are for lower taxes. Until Tuesday.

Here’s what happened: For reasons that aren’t entirely clear but are probably related to panic and a basic lack of principle, the Speaker of the House and other Republicans in Congress signed on to Democratic calls for “balance” between tax hikes and spending cuts — this despite the overwhelming evidence that spending is the real problem.

So, even before the negotiation began, they abandoned decades of principle on taxes. The result: Two months later, we have a deal, but no balance. It’s all tax hikes. Zero spending cuts. Nice job.

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Obama’s Tax Evaders of the Year

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President Obama will kick off the new year the same way that he kicked off the old year: by demanding that the wealthy pay their “fair share” in taxes. But while millions of small-business owners, struggling entrepreneurs, inventors, and investors brace for a double whammy of fiscal-cliff tax hikes and new Obamacare taxes, the class-warrior-in-chief’s richest pals are getting a pass.

It’s a golden pass for liberal millionaires and billionaires who support higher Obama taxes for everyone but themselves. Meet the Democratic tax evaders of the year.

Google. The left-wing Internet giant provided Silicon Valley’s biggest campaign-finance boost to Obama, with individual-employee donations supporting the tax-hiking candidate by a ratio of more than 31-to-1. Google rank-and-file workers pitched in some $800,000 to Obama. Google’s CEO Eric Schmidt, co-founder Sergey Brin, chief legal officer and senior vice president David Drummond, and vice president and chief Internet evangelist Vint Cerf are all vocal Obama supporters and top donors.

In December, Google’s Netherlands subsidiary disclosed in a tax filing that it had shifted nearly $10 billion in revenues to a Bermuda shell company. That’s “almost double the total from three years before,” according to Bloomberg News. In response to criticism, Google defended the scheme as a legal response to government incentives. “It’s called capitalism,” Schmidt snarked defiantly.

Wonder what all of Obama’s operatives and media lapdogs who bashed evil, selfish Republican offshore tax havens have to say about that? Cue crickets chirping.

Read more from this article HERE.