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View Diary: Republicans ask CBO to rig tax cut numbers (23 comments)

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  •  W's tax cuts and the CBO (7+ / 0-)

    I don't have the link for it, but I remember clearly that the CBO didn't originally forecast such a huge surplus in 2001.
       Because of that the GOP-controlled Congress threatened to "reform" the CBO (i.e. gut it) if they didn't "revise" their forecasts.

      The CBO buckled to the threats and forecast larger projected surpluses in order to justify Bush's tax cuts. The rest is history.

    ¡Cállate o despertarás la izquierda! - protest sign in Spain

    by gjohnsit on Fri Mar 29, 2013 at 12:39:55 PM PDT

    •  Republican history (5+ / 0-)
      Recommended by:
      sharman, gjohnsit, psnyder, Urban Owl, kurt


      The Republicans wanted the CBO to predict that Bush's tax cuts would result in surpluses.

      History disagreed.

      And back in 1994, the Republicans also predicted that Clinton's tax increases would crash the economy.

      History disagreed on that one as well.

    •  I'm sure the example the Bush admin set (2+ / 0-)
      Recommended by:
      kurt, gjohnsit

      When it "reformed" FHA was all the CBO needed in order to be encouraged to toe the line. First threatening its charter, should it refuse to increase the riskiness of its portfolio:

      "The government-sponsored corporations created to increase the liquidity of mortgage markets, so more capital would be available for mortgage loans, are supposed to lead the market in reaching underserved populations. While these corporations have increased their commitments to these efforts, they lag behind private lenders in this regard, according to government studies. The Administration will revisit the regulatory goals for these corporations’ purchases of affordable housing loans, which are set to expire in 2003. The federal government should demand more and should hold such publicly-chartered corporations accountable for better performance."

       (From Bush’s Press Release entitled “A Home of Your Own EXPANDING OPPORTUNITIES FOR ALL AMERICANS, PRESIDENT GEORGE W. BUSH JUNE 2002” regarding his “America’s Homeownership Challenge).

      Then forcing it to not only backstop more risky loans, but even to backstop loans with NO downpayment (
       President Bush proposed the Zero-Downpayment Initiative for Federal Housing Administration (FHA)-insured single-family mortgages for first-time homebuyers in his FY 2005 budget. FHA projections indicate that this new mortgage product would generate about 150,000 new homeowners in the first year alone.
      Then, when everything fell apart, forcing it to buy up much of the bad paper issued by the banking industry:
      The President launched FHASecure, which has helped more than 250,000 families avoid foreclosure by refinancing into safe Federal Housing Administration (FHA)-insured mortgages.  In April, FHA also announced a plan to expand the program to help even more families refinance their mortgages.  This expansion will begin in July.  In total, FHA expects to help about half a million families refinance by the end of the year.
      The administration screwed Fannie Mae and Freddie Mac in a very similar progression. The two organizations are controlled by HUD rules, and the administration had HUD  change the rules so that Fannie and Freddie's "mission" changed from "solid mortgages for people who don't meet certain traditional lending rules," to "guarantee a zillion mortgages, now."

      It's all documented in White House Press Releases.

      It's fortunate for the weasels on the right (who continue to paint the mortgage crisis as a result of left wing policies to help minorities) that Americans neither know enough to check up on their lies, nor bother to read original source material if they do check - preferring the easy path of reading their favorite commentators, who happen to pitch the same balls of manure.

      Alas, it's deeply unfortunate for those of us peons who have to live in the tattered economy that they created - because without broad knowledge in the electorate about what actually happened, there will be no correction of the problem.

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