• Tag Archives budget

  • Paul Ryan Starts Off on Wrong Foot With Budget Deal

    Posted on by Azrael Comment

    The new budget deal arranged by John Boehner and Democrats— approving $50 billion of additional spending in 2016 and $30 billion in 2017—will be split between domestic discretionary programs and defense. Cuts will supposedly take effect in 2025, by which time this deal is likely to be buried under a dozen budget debates and a trillion dollars of bad memories for fiscal conservatives.

    We’re told the reason for GOP capitulation is that Boehner, acting selflessly, is about to “clean out the barn” for a Paul Ryan speakership. Implicit in this argument is the idea that this kind of budget agreement would normally be a no-brainer but the crazies must be appeased. Passing it now and avoiding the heat will allow Ryan to move forward with his own agenda.

    If only it were that simple.

    For one thing, the GOP will have to live with the precedent set by the terrible deal in future negotiations. Barack Obama, as The New York Times points out, is now going to be able to “break free of the spending shackles” of the imaginary reign of austerity that was brought on by the Budget Control Act of 2011. So are all Democrats.

    For another thing, conservatives will almost surely see this as a betrayal. The administration came up with the idea of sequestration, and it turned out to be the only tangible victory Republicans could claim on spending.

    You may remember the 2010 Pledge to America, in which congressional Republicans promised to roll back government spending to pre-stimulus/bailout levels, cutting at least $100 billion in the first year after taking power. They failed to achieve that improbable goal. And almost every year since, government spending has gone up, though the GOP keeps adding seats by promising to achieve the opposite.

    Expecting the GOP to return Washington to 2008 spending levels—now, with a Democratic president in power, or probably ever—is unrealistic. Expecting Republicans at the very least not to piddle away the only leverage they have to keep the status quo is surely reasonable.

    If the GOP is unable to extract concessions that mitigate future spending and debt, then the debt ceiling has no real political purpose for Republicans. In fact, if Republicans can’t even hold the line on what they’ve gained—and at this point, Boehner is actually giving back items Republicans won in previous years—then the debt limit isn’t just useless; it’s counterproductive.

    Source: Paul Ryan Starts Off on Wrong Foot With Budget Deal – Reason.com


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  • Obama budget raises spending, taxes

    Posted on by Azrael Comment

    Saying he’s optimistic the economy and the government’s fiscal picture have finally turned the corner five years into his tenure, President Obama announced a $3.9 trillion 2015 budget Tuesday that calls for tax hikes and a $60 billion boost in spending next year.

    The federal government would run a $564 billion deficit in 2015, which would be a record low for Mr. Obama’s tenure. But the deficit would remain at about half a trillion dollars a year for the next 10 years, meaning debt would continue to pile up. By 2024, Mr. Obama projects gross debt would be $27.5 trillion.

    …

    He also rejected spending cuts he and Congress have agreed to in recent years, saying the government is wounding basic domestic programs. He instead said higher domestic spending can be accommodated by raising taxes on the wealthy.

    “At a time when our deficits are falling at the fastest rate in 60 years, we’ve got to decide if we’re going to keep squeezing the middle class,” Mr. Obama said.

    A $302 billion transportation-building program would be paid for by eliminating tax breaks for businesses — a move that is unlikely to sit well with Republicans, who have said any corporate tax code changes will have to be revenue neutral.

    Mr. Obama also proposed a federal tobacco tax hike to pay for federal funding to guarantee preschool and full-day kindergarten for children from low- and middle-income families.

    The budget is a month later than the deadline set in law.

    And it arrives in a Congress unlikely to care very much about the details. Senate Democrats have already said they won’t try to pass a budget this year, while House Republicans will try — but will reject most of the president’s proposals.

    Full article: http://www.washingto … ises-spending-taxes/


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  • House bill threatens $1 billion in NASA funding cuts

    Posted on by Azrael Comment

    The proposed $16.8 billion funding package would focus NASA’s long-term efforts on Mars exploration, set pre-determined milestones for development of commercial manned spacecraft — including a non-negotiable deadline for first flight — and sharply cut funding for Earth sciences.

    “This authorization bill reflects a sincere effort to maximize return to the taxpayer while working to protect America’s role as the world leader in space exploration,” Rep. Steven Palazzo, R-Miss., chairman of the Subcommittee on Space, said in opening remarks.

    “It is realistic and reflective of the hard choices we must make as a nation and provides support for agreed-upon priorities. The stark reality is that if we fail to reform mandatory spending, discretionary funding for space, science and research will continue to shrink.”

    He said the proposed “authorization discussion draft” was consistent with the 2011 Budget Control Act, mandating automatic spending cuts — sequestration — in the absence of legislation to trim $1.2 trillion from the federal deficit.

    via House bill threatens $1 billion in NASA funding cuts


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