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Unsurprising fact of the day: Small business optimism continues to tank

Natalie Gonnella
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With economic confidence sinking, unemployment soaring, and the country's fiscal future in flux, Gallup's latest poll results detailing the expectations of small business owners comes as no surprise.

According to the latest analysis:

Small-business owners turned less optimistic about future revenues and new hiring even prior to the events of recent weeks and the plunge in economic confidence. The percentage of owners anticipating that their revenues would increase over the next 12 months fell to 42% in July, down from 49% in April and 54% in January. At the same time, 18% expect their revenues to decrease. Small-business-owner revenue expectations are no better now than they were in October 2010.

And when it comes to future hiring expectations:

The percentage of small-business owners expecting the overall number of jobs at their company to increase over the next 12 months also fell in July, to 16% from 19% in April and 23% in January. Simultaneously, 12% of owners expect a decrease in the number of jobs at their companies over the next 12 months. Small-business hiring and firing intentions are now the lowest since this time a year ago.

As Obama claims to be turning his attention to job creation (something the GOP has regularly pursued in both the House and Senate throughout the current congressional term) the full results from Gallup's latest small business survey are available to view here.

It's Cost of Government Day 2011! Congrats, you've official earned enough gross income this year to pay your share of government spending

Natalie Gonnella
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It's been a rough week for the US economy, and what better way to cap it off than recognizing that the average American would have to work 224 days this year to meet the full cost of government spending and regulation for the current fiscal year - Happy Cost of Government Day!

Each year, the Americans for Tax Reform Foundation and the Center for Fiscal Accountability calculate 'Cost of Government Day' - aka the official day on which the average taxpayer has earned enough gross income to pay off his/her share of the fiscal burdens imposed by federal, state and local governments. 

In an unprecedented (yet unsurprising) leap, since President Obama took office, Americans now must toil 27 days longer than they did in 2008 to cover the government's soaring spending bill (nearly 62% of national income).

Overall, according to the report summary from the AfTRF:

• Americans have lost 29 days of the calendar year thanks to Obama’s overspending and regulatory zeal. 2011 marks the third straight year COGD has fallen in August. Prior to the Obama Administration, COGD had never fallen later than July 21.
•  The effects of the bailouts and failed “stimulus” plan are still being felt by Americans, who must work a full 103 days to pay for the costs of federal spending.
• Americans spend 44 days working to pay off state and local government spending.
• Americans are forced to labor 77 days to pay for total federal regulations, a workload that will increase exponentially with the implementation of the Dodd-Frank financial regulatory bill and Patient Protection and Affordable Care Act, known more popularly as Obamacare.
• The report also measures varying government burdens in each state to calculate their respective state Cost of Government Day. As in past years, taxpayers in Connecticut must work the latest to celebrate their COGD, laboring all the way until September 10 to pay off the full costs of government. Taxpayers in Mississippi worked the shortest amount of time to pay off their burden off government, laboring until July 19.

For more facts on CoD, the summary and full report from the Americans for Tax Reform Foundation and the Center for Fiscal Accountability are available to view here and here. 

What they're saying: The GOP's 'super committee six' reflect on their recently announced appointments

Natalie Gonnella
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Just days after Standard & Poor downgrade, Republican leaders John Boehner and Mitch McConnell officially confirmed their picks for the highly anticipated bipartisan 'super committee,' charged with slashing $1 trillion from the US deficit.

A highly sought after appointment, from committee chairmen to congressional freshmen here's a look at what the GOP picks had to say about their latest role:

Senator Pat Toomey:

Despite the difficulties ahead, I am committed to tackling this challenge and am hopeful that we can produce a proposal that seriously reduces our nation's deficits and grows our economy. Throughout the debate over the debt ceiling, I stressed that we need a solution that achieves the dual goals of putting our government on a path toward a balance budget, and maximizing economic growth and enabling us to create the jobs we badly need. I remain committed to both of these vital goals.

Senator Rob Portman:

With the U.S. debt now equal to 100% of the GDP, Washington cannot continue to kick the can down the road again. Not only does Washington’s out of control spending have a long-term impact on America’s economic stability, but it has an immediate impact on our ability to generate jobs and opportunity.

Representative Dave Camp:

Last Friday’s downgrade of our debt by S&P is a strong reminder of how important it is for this Committee to lead and focus on restoring confidence in America by further cutting out of control spending and reducing the deficit.  If we are successful in curbing the overspending in Washington that has sparked fear in the financial markets and created uncertainty on Main Street, we will start to see the job creation we desperately need.

Representative Fred Upton:

As someone who worked on the federal budget for President Reagan, I saw firsthand that sound economic policy is the bedrock of job creation and fiscal responsibility...No one believes this is going to be easy, but working with our colleagues on both sides of the aisle and in both Chambers of the Congress, we will work to address our fiscal challenges and get America back to work.

Representative Jeb Hensarling:

The debt crisis is a legitimate threat to our nation’s future, and the American people cannot afford to wait any longer.  Everyone can agree that we must stop spending money we don’t have, and the time to act is now.  This commission will not be able to solve the crisis in a matter of months, but we can work together to tackle these challenges in order to bring back jobs, hope, and opportunity for the America people.

Senator Jon Kyl also joins his colleagues as the sixth Republican on the bipartisan committee.  A statement on his appointment was not yet available.

GOP leaders announce their picks for debt super committee

Natalie Gonnella
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A week after the dramatic passage of the Budget Control Act, Republican leaders have officially announced their picks for the highly anticipated bipartisan super committee charged with cutting over $1 trillion from the federal deficit.

From the House of Representative, Speaker John Boehner has selected:

• House Republican Conference Chairman Jeb Hensarling (TX) 
• House Energy and Commerce Committee Chairman Fred Upton (MI)
• House Ways and Means Committee Chairman Dave Camp (MI)

Congressman Hensarling is also to serve as a co-chair of the joint committee.

And from the Senate, Minority Leader Mitch McConnell has selected:

• Senator Pat Toomey (PA)
• Senator Rob Portman (OH)
• Senator Jon Kyl (AZ)

Speaker Boehner issued the following statement in regards to the appointments:

Our debt and deficits are a threat to our economy, and America cannot achieve long-term job growth until we take action to address this crisis. In the weeks ahead, a serious, bipartisan committee of lawmakers will begin the hard but necessary work of making the tough choices needed to rein in mandatory and entitlement spending, which are the drivers of our debt.  The lawmakers I have appointed to serve on this joint committee are proven leaders who have earned the trust and confidence of their colleagues and constituents.  They understand the gravity of our debt crisis and I appreciate their willingness to serve on this panel.

The two parties have fundamental differences about government and its proper role in our society.  Where we've been able to agree, we have acted, and in a way consistent with the American people’s desire for a smaller, less costly, and more accountable government.  Still, the differences remain, and so does the urgent work of returning our economy to creating jobs and lifting the crushing burden of debt that threatens our children’s future.  This joint committee presents an opportunity for both parties to bring to the table their best ideas, debate them on the merits, and ultimately come together to do what’s best for our country.  With all that’s at stake, I expect that the joint select committee will conduct its work in the open and transparent manner the American people deserve.

The six Republicans will join Democratic Senators Patty Murray (WA), Max Baucus (MT) and John Kerry (MA) on the committee. House Minority Leader Nancy Pelosi is expected to announce her selections shortly.

Barely eight months into the current term, vast majority of voters say it's time to cut current members of Congress

Natalie Gonnella
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With soaring unemployment, stagnated growth, and the first ever US credit downgrade, it's no surprise that Americans are disappointed with their elected leaders (President Obama included).

And after a tumultuous month of debt debate, barely eight months into the current term, according to Gallup, registered voters are already looking for a change when it comes to the 112th Congress.

In the latest congressional approval poll, just 21% of registered voters feel that most lawmakers deserve reelection - the lowest percentage on record in the 20 year history Gallup has asked this question.

But while Americans' collective view of Congress has rapidly deteriorated, when it comes to their own district, Americans appear far more forgiving (likely due to more localized support). Overall, more than half of likely voters say their Representative deserves re-election. But while this seems more encouraging, Gallup does note that:

Even though a majority believes their own representative should be re-elected, the current percentage is on the low end of what Gallup has measured historically. The lowest readings were 48% in October 1992 and 49% on two occasions in 2010.

As lawmakers ready for their return to Washington in September, with concern growing over the upcoming super committee and the subsequent effects of the S&P downgrade, it will be interesting to see how voters' views will change (for better or worse) as the next phase of the budget battle gets underway.

The full analysis from Gallup's latest congressional poll is available to view here.

Although he says he's staying put, Republicans insist that it's time for Geithner to go

Natalie Gonnella
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Amid a growing list of economic failures and repeated calls for his resignation, Treasury Secretary Timothy Geithner today assured America he's staying put (lucky us):

Secretary Geithner has let the president know that he plans to stay on in his position at Treasury.

With discontent surging on both sides of the political spectrum, here's a quick look at the latest calls from Republicans for Geithner's timely Treasury departure:

Senator Rand Paul:

Secretary Geithner assured everyone that raising the debt ceiling without a plan to balance the budget would not result in a downgrade to our debt...He was clearly wrong. Our debt has been downgraded for the first time in history, and now American taxpayers will have to suffer the consequences.

Congresswoman Marsha Blackburn:

The Obama Administration must get on board with Republican efforts to cut up the credit cards and put our economy back on the path to prosperity.  The first step necessary in this process is for Treasury Secretary Tim Geithner to resign immediately.  It's time for new fiscal leadership in Washington.  Americans have had enough of the same old bad ideas that got us into this situation in the first place.

Congresswoman Michelle Bachmann:

We were warned by all the credit agencies that a failure to deal with the debt would lead to this downgrade in our credit rating,” she said. “But instead, the president submitted a budget that had a $1.5 trillion deficit, the he request a $2.4 trillion blank check on top of that. President Obama is destroying the foundations of our economy, one beam at a time. I call on the president to seek the immediate resignation of Treasury Secretary Tim Geithner and submit a plan that balances the budget in year. Turn the economy around and put our people back to work.

Senator Jim DeMint:

The president should demand that Secretary Geithner resign and immediately replace him with someone who will help Washington focus on balancing our budget and allowing the private sector to create jobs," DeMint said in a report Saturday in The Hill...For months he opposed all efforts to reduce the debt in return for a debt ceiling increase. His opposition to serious spending and debt reforms has been reckless and now the American people will pay the price,

What they're saying: Reacting to the US credit downgrade, GOP freshmen once again make the case for 'Cut, Cap, Balance'

Natalie Gonnella
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After a dramatic conclusion to Washington's latest budget battle, Americans ended the week with the unfortunate and unnerving news that despite the latest debt deal the US has lost its AAA credit rating.

And with the ever present possibility of further downgrades, lawmakers have been quick to weigh in on the unprecedented move, with many Republican freshmen once again raising their voices on behalf of the 'Cut, Cap, Balance' proposal.

Advocating for substantial spending reform and offering 'we told you so's' as Washington contends with the possibility of further economic decline, here's a look at what a number of GOP newbies had to say in response to Friday's downgrade announcement:

Congressman Mike Pompeo:

Since Obama has been President, we have accumulated an unprecedented $4 trillion in new deficits.  After 3 years, the President has yet to produce a plan to decrease spending or improve our economy.  I've seen enough.  As a result, I voted for a plan passed by the United States House of Representatives that would have trimmed almost $6 trillion in spending—Cut, Cap and Balance. 

Sadly, the Senate and the President mocked this plan.  Worse still, they refused to take action by even considering it in the Senate.  Cut, Cap and Balance is a credible plan that would begin to properly right the ship..The American people get it—cut the spending—I pray the President finally understands.

Congressman Joe Walsh:

Heeding the warnings of the rating agencies, Republicans in the House of Representatives took a different path and passed Cut, Cap and Balance legislation which would have brought structural change to the way Washington borrows and spends money. Regretfully, the Administration responded by calling the legislation an "empty political statement" and the President threatened a veto."

Simply put, if President Obama and Democrats in Congress had embraced Cut, Cap, and Balance and if the President were sincerely focused on the severe financial challenges facing the country instead of his re-election, this action by Standard and Poor's could have been avoided.

Senator Rand Paul:

There is plenty of blame to go around. Both parties have contributed to our $14 trillion debt. But it is hard to say this crisis wasn’t predictable, because it was. House and Senate conservatives clearly predicted this, and also offered the only solution that could have prevented our downgrade with our Cut Cap and Balance plan...We must rescue our finances through a Balanced Budget Amendment, and we must do it soon. We must cut spending immediately. And we must get new leadership, and put in place people who have seen problems coming and offered credible solutions, rather than those who continue to misdiagnose and mismanage our economy.

Congressman Reid Ribble:

Our legislation passed the House of Representatives on a bipartisan basis but was flippantly rejected by both Senator Reid and President Obama as being ‘draconian.’

In Washington, where some seem to act like rhetoric matters more than facts, spin more than substance, and misdirection more than problem solving, I wonder how the Democrat deficit doubters will react to these S&P analysts. I urge Senator Reid to give Cut, Cap and Balancethe full and proper debate that it deserves before our economy veers more dangerously toward crisis. Alarms are sounding for a reason...because our fiscal house is at risk of burning down.

Congressman Chris Gibson:

Given S&P's downgrade of our credit last night, I'm calling on the Senate and President to reconsider their position and pass this legislation. By passing "Cut, Cap, and Balance," and enacting comprehensive tax reform that closes "loopholes" allowing for lower marginal tax rates to grow the economy, we will solve the current fiscal crisis putting us on firm footing to make the the 21st century our best yet.

Senator Kelly Ayotte:

This is a blow to the United States, and it is a grim signal that we cannot continue to delay addressing our crippling debt. One of the reasons I opposed the recent deal to raise the debt ceiling was because it still left us vulnerable to the threat of a downgrade. The President and Congress must end business as usual in Washington and finally confront our debt crisis in a meaningful way with real cuts, serious budget reforms and entitlement reform.

Preventing Obama's recess appointments

Natalie Gonnella
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GOP lawmakers have already adamantly resisted a number of President Obama's proposed administration appointments, and although Congress is now in recess for the month of August, House Republicans aren't taking any chances.

Outlining a series of 'pro forma' sessions over the current break, GOP Representatives aim to effectively block the White House from implementing any recess appointments.

Freshman Congressman Jeff Landry said of the plan:

Throughout the August recess, my colleagues and I will preside over pro forma sessions in the House – preventing Congressional recess and Presidential recess appointments...We have taken up the call of the American people who want an open, accountable government. And we are ready and willing to take these extraordinary measures in order to return transparency to Washington and sanity to political appointees.

Meeting every third day until the first week in September, here's a look at the tentative schedule for the ad hoc sessions:

Congressman Jeff Duncan (August 9, 2011)

Congressman Jeff Landry (August 12, 2011)

Congressman Jim Jordan (August 16, 2011)

Congressman Mick Mulvaney (August 19, 2011)

Congressman Jeff Denham (August 23, 2011 )

Congressman Trey Gowdy (August 26, 2011)

Congressman Steve Strivers (August 30, 2011)

Congressman Andy Harris (September 2, 2011)

Congressman Allen West (September 6, 2011)

Following the House plan, in a similar move this week Senate Minority Leader Mitch McConnell announced that Senate Republicans will also hold a series of informal sessions over the course of the next month.

Majority of Americans believe Washington needs a pay cut

Natalie Gonnella
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After weeks of dramatic debate, poor approval ratings and the threat of fiscal default, an overwhelming majority of Americans feel that until the federal budget is balanced elected leaders are in need of serious cut in pay.

According to the latest telephone survey from Rasmussen Reports

82% [of Likely Voters] believe members of Congress should take a 25% pay cut until the federal budget is balanced. Only 14% disagree. 

In August of last year , 75% of Likely Voters said more generally that Congress should cut its own pay until the federal budget is balanced. 

 Nearly half of voters (48%) also believe the president should take a 50% pay cut until the federal budget is balanced. But 41% don’t share that view, while 11% more are undecided.

And when it comes to federal pensions, Americans remain less than impressed. Overall, regardless of whether the budget is ever balanced, almost two-thirds of voters don't believe lawmakers should receive a government pensions upon leaving office. And when it comes to the Commander in Chief just over half of Americans are also against the nearly $200,000 a year pension granted to US presidents.

Interestingly, although there is no partisan disagreement over whether Congress should take a pay cut, when it comes to the president, 57% of Democrats think a reduction in revenue is a bad idea.

As Washington prepares for the next phase of the budget battle, the full results of latest Rasmussen survey are available to view here.

What they're saying: Republicans weigh in on why they voted against the debt deal

Natalie Gonnella
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The Budget Control Act may have cleared Congress, but despite bipartisan support (although somewhat grudgingly) for the legislation's passage, in total 85 Republicans voted against the bill (19 Senators and 66 Representatives). 

Unimpressed with the proposal's key provisions, here's a look at what a number of congressional Republicans had to say about why they voted 'no':

Senator Jim DeMint:

This debt deal doesn't solve anything, it puts America at risk. At the end of his four-year term, Obama will be responsible for nearly $6 trillion in new debt. More than any other president. Washington's debt deal doesn't change our course, it taps the brakes as we speed toward a fiscal cliff.

Senator David Vitter:

We can -- we must -- do better. #tcot #latcot #debtceiling #deficit

Senator Dan Coats: 

I opposed the final vote because it falls significantly short of what is needed to address the severity of this fiscal crisis.  For months I have been saying a credible must include at least $4 trillion over a decade and a commitment to restructure entitlements and our tax code. This bill only cuts as little as $2.1 trillion over 10 years and most of these reductions don't occur til years down the road.

Congresswoman Martha Roby:

I am pleased that a default has been avoided as a result of the vote tonight. However, I was unable to support this legislation because, after a careful reading of the bill, I fear it could ultimately result in devastating and unjustified cuts to our national security. This bill, unlike previous proposals I supported, has a weak firewall against potentially destructive defense cuts. To be sure, there are savings to be found in the Pentagon’s budget, and I have already voted this year to trim wasteful and unnecessary defense spending. But this bill goes much too far. The legislation would use our defense budget as an insurance policy to guarantee savings in the event that the special joint committee, which this legislation creates, fails to achieve cuts in other areas of the government bureaucracy.

Congressman Tim Scott:

[T]his compromise did not take enough steps towards ensuring a stable economic future in order to earn my vote. The short-term spending reductions in the bill were insufficient, I believe the Balanced Budget Amendment should be mandated, and I have concerns with lingering questions regarding defense cuts. 

Despite my decision on this particular vote, I am pleased with the direction we are moving the debate, and want to thank the American people for supporting the principles of Cut, Cap, and Balance. I will continue the fight to reign in spending, reform our tax code, and get the government out of the way of our job creators.

Congressman Tim Huelskamp:

Despite having pledged to the American people an open and transparent process and despite having months to fix this problem, we were asked to vote in the 11th hour for a bill that the public had less than 16 hours to read and understand. The culture of fiscal irresponsibility may not have been created by this Congress, but we were sent here to put an end to it; I'm afraid this bill does not rise to that occasion.

Senator Marco Rubio:

I cannot support this plan because it fails to actually solve our debt problem, fails to diminish the risk of a credit rating downgrade and is not a long-term solution to avert a debt crisis.

Congressman Connie Mack:

The Congress voted again to continue funding the President’s reckless spending and financial irresponsibility. The President and Congressional Democrats have played games, used scare tactics, and offered ‘schemes’ not solutions to Washington’s spending problem. While I did not support the plan put forth today, the House has put forth three plans and the President has failed to put any plan on the table. America needs a permanent fix to Washington’s spending problem and today the co-sponsorship of the Mack Penny Plan has reached a new high of fifty-six Members of Congress, and I expect many others to join the effort during the August recess.

Senator Jeff Sessions:

[M]y great reservation that compels me to oppose this bill is that we are undermining the one thing most vital to ending the debt crisis looming over us: accountability. 

The new normal in Washington has become panic-driven 11th hour votes in which Members are told to fall into line before pandemonium ensues. This is no way to run the Congress or to run the government.

I fear we are relinquishing our responsibility as Senators.

Senator Chuck Grassley:

I voted against the plan because it delays meaningful spending reductions, fails to address entitlement spending in a way that will save the programs for future generations of retirees, and leaves open the possibility of tax increases.

In fact, the White House said yesterday it will seek to increase taxes in the second part of the deal.  Tax increases are the wrong answer for a struggling economy, and recent history proves that higher taxes don’t go to the bottom line.  Instead, they’re a license for Washington to spend even more.  Since World War II, for every dollar in new taxes, the government has spent $1.17.

Senator Pat Toomey:

Unfortunately, the debt ceiling deal...does nothing to deal with the path of our government's unsustainable deficit spending. For fiscal year 2012, this legislation will only cut two-tenths of 1 percent of total spending. Not only will our debt grow each year under this plan, it will continue to grow even as a percentage of our economy. Finally, I am concerned that the long-term cuts over the next decade will not materialize. All Congress has to do to override this bill's spending restraints in the future is pass another law that overrides them. If Congress is truly serious about cutting spending, it would mandate serious spending cuts in next year's budget - the only year in which cuts are actually guaranteed.

Senator Dean Heller:

I respect the effort by all involved to reach a compromise, but this agreement simply does not make the long-term, structural changes necessary to rebuild our economy. Congress has again shied away from making the tough decisions necessary to seriously address our nation’s need for fiscal health and economic growth. Twice I have voted in favor of forward-looking plans that would prevent tax increases, protect Social Security and Medicare and require Congress to send a Balance Budget Amendment to the States.