Skip to comments.Balanced Budget? Lower Taxes? Anyone Believe this Will Happen?
Posted on 02/07/2013 7:03:54 AM PST by SeekAndFind
Government Executive reports House passes balanced budget bill.
The House on Wednesday passed legislation that directs President Obama to submit a balanced budget plan to Congress this spring.
The Require a Plan Act (H.R. 444) compels Obama to submit a supplemental budget by April 1 if his fiscal 2014 budget blueprint does not include a plan to balance the governments books. That supplemental budget would outline a long-term deficit reduction strategy and timeline for balancing the budget. The chamber approved the legislation, shepherded by Rep. Tom Price, R-Ga., and the GOP leadership, after debating it Wednesday morning.
The Democratic-controlled Senate is unlikely to take up the bill.
DBA (Dead Before Arrival)
Given the senate will not take the measure up, the bill is nothing more than political grandstanding. Besides, there is not much merit to the idea anyway.
Congress is in control of the budget, so it is up to Congress to present a plan to balance the budget (which, other than Senator Rand Paul, they will not do).
No Delay in Automatic Spending Cuts?
Here's one for the "I hope it's true, but I'll only believe it when I see it category" : Boehner Opposes Delay in Spending Cuts Without Reforms.
House Speaker John Boehner said he will oppose any delay of $1.2 trillion in automatic U.S. spending reductions set to begin March 1 unless Congress replaces them with other cuts and reforms.
At some point, Washington has to deal with its spending problem, Boehner, an Ohio Republican, told reporters at a Washington news conference today. Ive watched them kick this can down the road for 22 years that Ive been here. Ive had enough of it. Its time to act.
The March 1 deadline marks another fiscal showdown between the administration and Republicans, who control the House of Representatives. Boehner and other Republicans have said for weeks that they expect the spending reductions to take effect, and that they wont accept any tax increase to prevent them.
Deep, indiscriminate cuts to things like education and training, energy and national security will cost us jobs and slow down our recovery, Obama said at the White House yesterday in urging adoption of a short-term plan. This doesnt have to happen.
Democrats who control the Senate debated alternatives for replacing the spending cuts during their retreat yesterday in Annapolis. They agreed they should pursue a measure to replace the cuts with a combination of new tax revenue and a different set of spending reductions, said a Senate Democratic aide who spoke on condition of anonymity because the meeting was private. The lawmakers didnt decide on details or how long the spending cuts should be delayed, the aide said.
Mish Point of View
Congress is squabbling over $20 billion here and $12 billion there. The deficit is over a trillion dollars a year for as far as the eye can see.
Reporters, Obama, and Democrats all talk as if there is "$1.2 trillion in automatic U.S. spending reductions" on the way. There isn't, and reporters ought to know better.
In fact, there are no cuts at all that I can see. Rather there is a reduction in projected increases, and even those reductions are back-end loaded.
Even if the reductions represented true cuts, the cuts are spread out over 10 years, a pathetic $120 billion a year, when a total of a $1 trillion in cuts is needed to balance the budget.
Furthermore, the above math assumes the economy will grow as fast as the Congressional budget office assumes (and I assure you it won't).
The very best thing that could theoretically happen would be automatic "cuts" coupled with additional, meaningful "real" cuts. The odds of that combination are roughly zero percent.
The best one could possibly hope for in practice is for the automatic cuts to kick in. Unfortunately, Spoiled Brat Syndrome is highly likely to get in the way.
Mike "Mish" Shedlock
Not without a balanced budget constitutional amendment and a super majority requirement for tax increases as part of it.
Of course we believe it. Things are so wonderful that I just got an offer on my single wide 1962 mobile home for 2.3 million dollars. It sits on a huge 25’x80’ lot and backs up to a freeway. With the proceeds I’m going to buy a unicorn ranch and raise rainbow unicorns and alpacas. And they are going to sell for 100k each when they are six months old. Oh, I think they’re pulling up in front of the house in an armored car right now. Ooopppsss. Wrong kind of armored car.
Molon labe ya’ll.
I guess that blubbering Boehner forgot that Il Douche is required by law to submit a Budget, and that he’s simply ignored the law for his entire term so far. Another “Act of Congress...” will make no difference. Il Douche will merely ignore it as he does all of Boehner’s worthless and toothless posturing.
Blubbering Boehner and Benedict Cantor are doing us no favors.
Can I buy that bridge???
I also believe that the sequester cuts will not happen because Ryan and O assured me they wont.
Is that monument for sale?
I’ll be brief: No.
Under the reign of Lord Ogumbo? HAHAHAHAHA!!!!!!!!!
Not even then.
Not even then.
Balanced Budget means diddly as long as Congress has the Power to BORROW, especially when they borrow from the Cabal of Banksters known as the Federal Reserve Corporation, which incidentally Congress created just for that reason, an unlimited supply of CREDIT that NEVER NEEDS TO BE PAID BACK, Just Enslave Future Generations in perpetual Debt, never missing an interest payment to the Banksters for CREATING the Money out of thin air.
How about just passing the 2008 budget again?