But the debt-ceiling battle – boring as some folks might find it – is now threatening to take down not just our economy, but our future.I’m not even talking about the prospect of default, which led to a downgrade threat for US credit today. I’m talking about the GOP’s ability and willingness to use the fear of default to sabotage the economy. Some House Republicans have actually indicated they might be willing to buck the mighty Grover Norquist and consider raising tax revenues. Senate Republicans aren’t exactly there yet.
But the fact that we’re even having the debate of trying to get some Republicans to consider raising revenue – not even rates, just close some loopholes! – in order to save the economy from default is insane. Almost literally, insane. Both Reagan and Bush 41 raised taxes – to help the economy. Bush 43 lowered taxes and gutshot the economy. And as for insanity, the Republican rationale for refusing tax hikes is that higher taxes kill jobs. And today there’s a graph making the rounds showing that not only is there not a correlation between high taxes and lower jobs…the correlation is exactly the other way around. Throughout our history we’ve had our best rate of Gross Domestic Product (which spurs job creation) when we’ve had the highest upper-bracket tax rates. See for yourself. Spread the word.
Today’s Underbuzzed will be up in a bit. Check back with us later this afternoon.
Follow Senior Producer Jonathan Larsen (@jtlarsen) on Twitter