S & P Downgrade Repeatedly Cites GOP Intransigence On Taxes

The GOP will be doing its best to spin the S & P downgrade of the USA's credit rating against Barack Obama - the always untethered Michele Bachmann (who was willing to let the USA default on its debts) has already claimed it's Obama's fault. As is typically the case with today's GOP, the truth is the exact opposite of whatever they are claiming. The same rule, of course, applies to their equally dishonest allies among the Kool-Aid drinking Christianist set. The real blame for the downgrade decision rests fully on the GOP as is made evident by the release from S & P that sought to explain the basis for the decision. Think Progress has a good summary of the S & P statement. Not surprisingly, the office of douche bag Virginia Congressman Eric Cantor declined to comment on the clear wording of the S & P statement. Here are highlights from Think Progress:

In explaining their decision Standard & Poor’s cites both the decision by Republicans in Congress to turn the debt ceiling into a political football and the Republicans intransigence on tax increases. Some excerpts from the release:

[...]The political brinksmanship of recent months highlights what we see as America’s governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy.

[...]It appears that for now, new revenues have dropped down on the menu of policy options.

[...]The act contains no measures to raise taxes or otherwise enhance revenues, though the committee could recommend them.

[...]Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act.

Standard & Poors indicates that they could improve their rating for the U.S. if “the 2001 and 2003 tax cuts for high earners lapse from 2013 onwards, as the Administration is advocating.”