ThinkProgress Logo

Economy

Republican Senator: GOP Should Hold Debt Ceiling Hostage As Leverage For Medicare Cuts

On Sunday, Sen. Bob Corker (R-TN) conceded that Democrats have won the debate on raising taxes on the richest Americans and said that he would likely vote to increase rates on the top 2 percent of Americans in order to shift the debate to cutting entitlement programs and improve the GOP’s leverage in the debate over how to avert the so-called fiscal cliff.

During an appearance on Fox News Sunday, Corker explained that if Republicans “give Obama a 2 percent increase,” the party can then hold the debt ceiling hostage in order to secure real cuts in spending:

CORKER: The Republicans know they have the debt ceiling, that is coming up around the corner, and, the leverage is going to shift, as soon as we get beyond this issue. The leverage is going to shift, to our side where hopefully we’ll do the same thing we did last time and that is if the president wants to raise the debt limit by $2 trillion we get $2 trillion in spending reduction and, hopefully, this time, it is mostly oriented towards entitlement and with no process. [...]

[Obama] has the upper hand on taxes and you have to pass something to keep it from happening. We only have one body. If we were to pass, for instance, raising the top 2 rates, and that’s it, all of a sudden we do have the leverage of the debt ceiling and we haven’t given that up so the only way the debt ceiling.

House Speaker John Boehner (R-OH) has indicated that the GOP plans to use that leverage by demanding more spending cuts, but the move will result in great economic costs. In 2011, Republican demands nearly led to a credit default and ultimately cost taxpayers “$18.9 billion over 10 years, due to elevated interest rates between January and August 2011.”

Obama slammed the GOP’s strategy during a meeting with business leaders last week. “The thinking is the Republicans will have more leverage because there will be another vote on the debt ceiling, and we will try to extract more concessions with a stronger hand on the debt ceiling,” Obama told members of the Business Roundtable. “That is a bad strategy for America, it’s a bad strategy for your businesses, and it is not a game that I will play.”

Climate Progress

Report: Ski Industry Sees $1 Billion In Global Warming Losses

by Bob Berwyn, via Summit County Voice

A new report on the economic costs of global warming to the ski industry will resonate especially loudly during Colorado’s second consecutive early season snow drought.

With the state’s major ski resorts struggling to open just minimal amounts of terrain in time for the busy Christmas holiday season, two University of New Hampshire researchers estimate that the $12.2 billion industry has already suffered a $1 billion loss and dropped up to 27,000 jobs due to diminished snow fall patterns and the resulting changes in the outdoor habits of Americans.

More than 23 million people participated in winter sports during the winter 0f 2009-2010.  Snow-related economic activity resulted in $1.4 billion in state and local taxes and $1.7 billion in federal taxes.

The economic study was prepared for the nonprofit groups Protect Our Winters and the Natural Resources Defense Council. The two organizations have partnered the past few years to raise awareness of climate-change impacts to snow-dependent mountain communities and snow sports industries.

“In the many U.S. states that rely on winter tourism climate change is expected to contribute to warmer winters, reduced snowfall, and shorter snow seasons,” said UNH researcher Elizabeth Burakowski.  “This spells significant economic uncertainty for a winter sports industry deeply dependent upon predictable, heavy snowfall.”

The study compared and contrasted differences in skier visits and economic activity between good and bad snow years and used climate models to project the impacts in coming decades.

The largest changes in the estimated number of skier visits between high and low snowfall years between November 1999 and April 2010 (over one million visits) occurred in: Colorado (-7.7 percent), Washington  (-28 percent), Wisconsin (-36 percent), California (-4.7 percent), Utah (-14 percent), and Oregon (-31 percent).  The resulting difference in economic value added to the state economy ranged from -$117 million to -$38 million.

“This data reaffirms the fact that ski resort CEOs and trade groups leaders have a fiscal responsibility to both understand climate change and respond at scale,” said Auden Schendler, vice president of sustainability, Aspen Ski Company. “That should be the industry’s highest priority.”

The industry has taken a few shaky steps toward reducing its own carbon footprint with forays into renewable energy, but the lodging sector in particular is still a carbon-producing energy hog, and certain aspects of resort operations, including snowmaking, are far from sustainable.

Read more

Newer

Switch to Mobile
ThinkProgress Signup Overlay Skip and Continue to ThinkProgress Skip and Continue to ThinkProgress

Sign Up