The term ‘fiscal responsibility’ is en vogue in Washington these days. Lawmakers have been quick to claim they will tackle the federal government’s impending financial crisis, a claim showcased by the President’s commission to reduce the federal deficit. But Congress’ recent behavior proves they are no more serious about reining …
The typically staid pages of the Washington Post Business Section were graced this morning with subtle humor from the virtual pen of the ever-sober, oft sagacious Steven Pearlstein. In a piece titled “Keeping an open mind on solutions to the budget deficit”, Pearlstein neatly lays out the argument one typically …
Marty Sullivan, a frequent commentator on tax policy, has now apparently decided the United States needs a value-added tax (VAT). To advance the cause, he penned a brief column on “VAT Lessons from Canada” [“VAT Lessons From Canada”, Martin A. Sullivan, Tax Notes, May 3, 2010.] However, in trying to …
After enacting 93,000 earmarks at a cost of $200 billion over the past decade, lawmakers are finally taking the first steps to rein them in. First, House Democrats hinted they may announce a moratorium on earmarks to for-profit companies (while retaining them for non-profit organizations and state and local governments). …
Senator Daniel Inouye (D-HI), chairman of the Appropriations Committee, took to the floor yesterday to protest an effort led by Senators Jeff Sessions (R-AL) and Claire McCaskill (D-MO) to place a relatively modest cap on discretionary spending. Before raising a budget point of order (which requires 60 votes to overcome), …
Last January, Senators Jeff Sessions (R-AL) and Claire McCaskill (D-MO) introduced an amendment which would have taken the first steps toward restoring fiscal responsibility in Washington. While the amendment failed to attain the necessary 60 votes for passage, it did gain strong bipartisan support, with 16 Democrats joining all but …
On Tuesday, February 2, President Obama released his budget forecasting a deficit for 2010 of $1.6 trillion for the year and $9.1 trillion from 2010 through 2020. The next day the Moody’s credit rating agency announced Obama’s budget policies were so profligate and irresponsible as to risk the credit rating …
The President has the right idea with his proposal to freeze spending. Unfortunately, after driving spending to a record $3.7 trillion—nearly 26% of GDP—last year with the accompanying $1.4 trillion deficit, the proposal is at best a bit….underwhelming. According to the administration, only $447 billion in spending would be subject to …
After quietly increasing the federal debt limit from $12.1 trillion to $12.4 on Christmas Eve, the US Senate is beginning debate today on yet another increase. Hoping to avoid making the skyrocketing debt levels an election issue; this time around they want to pass an increase large enough to feed their …
The health care reform wallowing through Congress includes a ploy reminiscent of the “liar loans” prominent during the recent real estate bubble before its collapse. The bill cuts imaginary Medicare spending and uses the funds for real spending elsewhere. Senator Judd Gregg (R-NH) has blown the whistle on this charade. …
