Score: Republicans 1, People negative 59.1 billion

It's interesting to watch the debate on the Alternative Minimum Tax…and by “interesting” I mean the same kind of detached dread that one must feel if one is awake in an operating room as one’s right hand is amputated.

In 2006 the freshly minted Congress, in an act of sanity restored the "pay-go." That’s the simple premise that if we are going to authorize spending money, we’ve got to figure out what we’re not going to spend somewhere else.

Spending money is about choices. This is a simple fact of life that you and I have to live by every day. If I buy the new iPod 16Gig Touch (at nearly $400), I am not going to go buy a new laptop this month…or groceries either, but that’s another story. In economics it’s known as opportunity cost. There are only so many resources to go around, and if we spend those resources in one place, we’ve got to figure out where we are not going to spend money.

Here are the sad facts that no one seems to be willing to say out loud. As I write these words, the US federal deficit is $9,176,331,074,081.58 ($9.2 trillion), and it continues to rise by over $1.5 billion per day. Oh, I forgot to add, if you include unfunded Social Security, Medicaid and other empty government promises, the actual debt is more like $59.1 trillion. Since there are 303,818,150 US citizens, that means that every man, woman, boy and girl you know owes $194,524.26. For a family of four, that means you owe $778,097.03 over and above the taxes you’re already paying.

Go find someone you love, look them in the eye and explain how you’re going to repay the $194,524.26 you owe. With all of the talk by the Republicans about “tax and spend” Democrats, it’s interesting that they are perfectly willing to be “deficit and spend” Republicans. And by “interesting,” I mean…well you know.

OK, so now we understand the situation. Perhaps that explains why the House of Representative insists that, to fix the Alternative Minimum Tax (AMT), the money has to come from somewhere. No more deficit and spend.

But in the Senate, where the Republicans have used the power of the filibuster to block all business, a compromise was reached that fixes the AMT, but further runs up the debt. The House is stuck between their promise of fiscal responsibility and a hand grenade with the pin pulled. In the end the House will have no choice but to cave on this issue and fix the AMT without offsetting funds.

So, the Republicans are going to win the spin war. They’re going to make it look like the Democrats are the ones who are holding up your tax break while the deficit rises uncontrollably. Score that one, Republicans 1, the people 0…or more correctly, a negative $59.1 billion.