Tuesday, January 24, will mark the 1,000th day since the U.S. Senate has passed a budget—an egregious dereliction of duty on Senate Majority Leader Harry Reid’s (D–NV) watch. By enacting continuing resolution upon continuing resolution (short-term measures to keep the government running, spending money at the current rate), the Senate has taken a pass on leading, all to the detriment of the poor and middle class. The budget process forces Congress to set priorities to protect the people’s money and put it to its appropriate use. Instead, the Democrat-controlled Senate has abdicated its responsibility. …
The U.S. military is on a dangerous course. Under the projected defense spending caps brought on by the Budget Control Act of 2011, funding for modernizing the military will be squeezed to a dangerous degree. That includes reduced spending on the procurement of new weapons and equipment and research and development on new defense technologies as the infographic below shows. (Article continued below.) In a new paper, Heritage’s Baker Spring, the F. M. Kirby Research Fellow in National Security Policy, explains the impact the reduced funding will have on America’s defenses: The result …
On the front page of the White House’s website, a clock slowly ticks away, second by second, counting down to the day, hour, minute, and second that the nation’s payroll tax “holiday” expires and the American people get socked right where it counts — in the pocket book. And just next to that clock is a message laying the blame squarely on the House of Representatives. But today the real culprit in this debacle is the U.S. Senate which, right now, is home for the holidays already, celebrating with family …
As the clock counts down toward Christmas, Congress still has major unfinished business to attend to. Not that we should be surprised. Emblematic of a resoundingly disappointing year, the last remaining issue to be resolved directly affects the pocketbooks of Americans. Just days from now, the payroll tax “holiday” will expire. At the same time, fees for physicians and hospitals providing Medicare services will be severely cut and additional weeks of unemployment benefits for long-term unemployed will run out. It’s not like these expirations were unexpected. These issues have been …
With Christmas just a week away and the new year nearly upon us, Congress came within a whisper of yet another potential government shutdown and once again demonstrated its inability to make substantive spending cuts and deliver the American people the reforms necessary to secure America’s fiscal future. Rather than produce a timely budget by way of standard operating procedure, congressional leaders again butted up against the deadline and reached a deal on a trillion-dollar “mega-omnibus” nine-bill appropriations package that sadly is yet another disappointing failure to rein in government …
The accounting methodology used to measure the cost to taxpayers of federal loan guarantee programs such as the one that financed defunct solar company Solyndra may dramatically understate the programs’ financial risk to taxpayers. Simply put, the federal government ignores administrative costs and the risks of borrowers defaulting on their obligations. Under the Federal Credit Reform Act of 1990, the cost of federal financing is measured according to a discounted rate based on the cost of lending Treasury securities. That includes the cost of average losses from loan defaults, but …
Tax hikes were the focal point of the contentious, failed supercommittee negotiations designed to reduce the national debt by at least $1.2 trillion. Democrats wanted massive tax hikes. Republicans flirted with a tax reform deal lowering rates and closing loopholes. But the fact that tax hikes were at the center of the debate indicates that the committee – which includes Michigan Reps. Dave Camp and Fred Upton – fails to grasp the true nature of our debt crisis. Overspending, especially on entitlements such as Social Security, Medicare and Medicaid, is …
With the failure of the super committee to recommend at least $1.2 trillion in deficit reduction, Congress’s latest attempt at budget control has collapsed. There will be many analyses of why the process did not work, but it’s worth stepping back to recall what generated the need for this extraordinary procedure and what the exercise actually produced. From early in the year, it was generally accepted that the divided Congress would be unable to agree on a budget through regular procedures. Republicans chose to use a necessary vote on the …
The congressional Joint Select Committee on Deficit Reduction, called the Supercommittee, announced today that it has failed to meet its statutory duty to recommend deficit reduction to Congress. But the overspending problem is still here. Congress does not get to quit on the American people or stall for more time. Congress must still act to get federal spending under control, in a thoughtful, intelligent manner that meets the needs of the American people. Mindless across-the-board cuts to government spending — especially cuts that gut the nation’s defenses when America already …
In 1969, as President Nixon’s Domestic Policy Council sought ways to spend the forthcoming “peace dividend”—savings projected from the wind-down of the Vietnam War—council members ran into an inconvenient fact: The fiscal windfall did not exist; any post-war “savings” were already committed to a range of new spending, including some of the blossoming Great Society programs of the previous Administration. It was the first time total government spending did not decline after a war. Today, some members of the congressional “super committee” want to go back to the future—by spending …
