Alan Simpson blasts debt impasse

Sometime I think you have to be a former member of Congress to have any sense...

In an interview with The Associated Press, Simpson said both parties in Congress have bowed, at least so far, to lobbying pressure from interest groups as well as members' own interests in getting re-elected in refusing to get behind real austerity measures.
from the Billings Gazette

You see, there is this Taxpayer Protection Pledge that most Republicans have signed and if the were to renege on this pledge they might find campaign contributions diminish. According to Simpson,

...Grover Norquist, head of Americans for Tax Reform, has concentrated on getting GOP politicians to sign a pledge never to support a net increase in taxes.

And the Democrats won;t agree to any package that doesn't have a least some tax increases in it.

Ironically, a fairer tax system would have fewer loopholes and incentives bult into it and that is one of the things the committee was supposed to be working on. However, even Obama is two faced on this issue...

“Either we ask the wealthiest Americans to pay their fair share in taxes, or we’re going to have to ask seniors to pay more for Medicare. We can’t afford to do both. Either we gut education and medical research, or we’ve got to reform the tax code so that the most profitable corporations have to give up tax loopholes that other companies don’t get. We can’t afford to do both. This is not class warfare. It’s math.” (Link)

New Tax Cuts to Businesses to Support Hiring and Investment: The President is proposing three tax cuts to provide immediate incentives to hire and invest: (Link)

He's perfectly willing to close loopholes for the wealthy corporations just as long as he can open up new loopholes, er, or incentives. Whatever you want to call them.