President Barack Obama made two fundamental mistakes today in his press conference which was intended to calm the markets. First, he did not lead off with a moment of reflection on the loss of American military lives in Afghanistan over the weekend. Second, he completely missed the boat on why Standard & Poor’s (S&P) lowered the credit rating of the United States. The President should have led off his press conference with prayers and condolences for the families of the 30 members of the U.S. military who lost their lives in …
President Barack Obama declared in a press conference today that he is against the Cut, Cap, and Balance Act and a Balanced Budget Amendment to the Constitution (BBA). Obama said that a BBA is not needed for Congress and the President to balance the budget. The facts contradict the President’s statement and tell a different story. If it is so easy for Congress and the President to balance the budget, why are they running a $1.5 trillion debt or more this year? Ironically, the President submitted a budget to Congress …
Yesterday, the President conditioned a debt limit increase on the House and Senate meeting his demands to increase taxes, a very risky declaration. The President declared that he would veto any short-term debt limit increase because he wants a comprehensive deal including tax increases. Ben Feller of the San Francisco Chronicle asked the President if he would sign a short-term debt limit increase: Thank you very much, Mr. President. Two quick topics. Given that you’re running out of time, can you explain what is your plan for where these talks …
Today, Senator Jeff Sessions (R-AL) introduced legislation to force seven calendar days of transparency before any debt limit deal is passed by the Senate. The measure is in the form of a point of order and reads as follows: It shall not be in order in the Senate to proceed to any measure that would increase the statutory limit on the public debt above $14.294 trillion unless that measure has been available on a public website for a full 7 calendar days before consideration on the floor of the Senate. …
Yesterday, Senator Ron Johnson (R-WI) took to the Senate floor to fight against secrecy in budget talks and out of control spending. Transparency may be dead in debt limit talks, but if heroes like Senator Johnson pledge to use the two most important words in the Senate dictionary–“I Object”–to shut down the Senate, they can force transparency for the American people. Senator Johnson threatened to object to all unanimous consent agreements until debt limit negotiations and the budget are done out in the open. He also cited the fact that …
The Washington Post reports that “lawmakers speed up debt-reduction talks.” The headline of that story should read “Lawmakers speed up secret debt-limit talks; details scarce.” Once again, in classic Washington style, these talks are in secret and behind closed doors. Where is the transparency? The White House and congressional leaders are accelerating negotiations over the biggest debt-reduction package in at least two decades amid mounting concern that the effort is running out of time. Over the next six weeks, negotiators must strike a bipartisan compromise to slice more than $2 trillion …
Congressional Quarterly reported yesterday that Democrats, led by Representative Chris Van Hollen (D–MD), are pushing to use “tax overhaul” as a means to cut a deal to increase the debt ceiling by $2.4 trillion: Van Hollen also revealed that Democrats on the panel have “put a whole menu of options on the table” to eliminate corporate tax breaks, which so far have not been accepted by Republican members. The proposals include repealing tax breaks for the oil and gas industry, corporate jets and private jets, he said. “It’s a whole …
The House Republican Study Committee (RSC) has deployed a new theme to be introduced into the debt limit increase debate: “Cut, Cap, and Balance.” The debt limit is expected to be considered by both chambers of Congress by August 2. House conservatives have drawn up a list of demands in consideration for allowing the debt limit to be increased. The fault lines are clear in the debate right now. The Los Angeles Times reports today that there is a standoff between the two parties on a debt limit deal, and …
The House is expected to vote down a clean increase of the debt limit today. This vote is merely political theater and a way for Members of Congress to go on record as being against an increase in the debt limit without any cuts to spending or reforms to the budget process. Many worry that the eventual debt limit increase plan will dodge entitlement reform and may include an idea to increase taxes. The New York Times reports today that there is no will on the part of House members …
A battle is raging within the conservative movement on Capitol Hill whether to shoot at the flag stick or lay up (in golf terms). The battle is between the Balanced Budget Amendment (BBA) versus a statutory spending cap bill. Both factions have good points. The bold, shoot-at-the-flag-stick faction of the movement wants to push for a BBA strategy or bust. This strategy includes taking the debt limit increase hostage for the demand of a BBA passing both the House and the Senate. Another other faction of the movement is pushing …
