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Republicans Have Reformed Taxes; Will They Fix 1970s Budget Rules Next?
Townhall.com ^ | Dec 22, 2017 | Michael Barone

Posted on 12/21/2017 9:09:45 PM PST by Oshkalaboomboom

The Republicans have passed their tax bill, without a single Democratic vote, despite low to dismal poll ratings. It's reminiscent of the passage by Democrats, without a single Republican vote, of Obamacare in March 2010.

Democrats lost 63 seats and their House majority that fall. Republicans hope they won't follow suit. They argue, accurately, that their bill will lower taxes for almost all taxpayers and that it will stimulate economic growth, which already has risen above the growth in the Obama years.

The effects of Obamacare, in contrast, were harder to model, and some backers' claims -- if you like your insurance, you can keep it -- soon were revealed as glaringly untrue. We'll see whether the greater simplicity of the tax bill makes a difference in political fallout.

One thing in common between the two bills is that voters have seemed congenitally skeptical about the claims of the party in power. Obamacare continued to be unpopular until, presto, Donald Trump took office and Republicans threatened repeal.

A second thing in common is that the details of both signature pieces of legislation -- details that weakened their appeal and provided ammunition for opponents -- were the result of legislative straitjackets created in the 1970s.

The restrictions of the Congressional Budget and Impoundment Control Act of 1974 and the cost estimates of the Congressional Budget Office it created were intended to provide clarity and restraints on presidents and Congresses. Ironically, we had mostly balanced budgets before 1974 and have had mostly budget deficits since.

Another 1970s reform that has proved counterproductive involved changes in Senate filibuster rules. The number of votes needed to end a filibuster was reduced from 67 to 60, and filibusterers were no longer required to hold the floor, speaking all night if need be, to block passage of legislation. The result: many more filibusters than before and an effective requirement -- unimagined when I was writing the first edition of The Almanac of American Politics in 1970 -- of a supermajority of 60 votes to pass major bills.

As any student of political behavior might have predicted, both parties have learned to game these systems. Obamacare and the tax bill provide many examples.

Democrats got the Congressional Budget Office to count the revenue generated by Obamacare's Community Living Assistance Services and Supports, or CLASS, Act taxes, fully realizing that program's postponed and unsustainable costs would never be incurred. Republicans likewise took some $300 billion of savings, suddenly available when the CBO revised its clearly mistaken estimates of costs of repealing Obamacare's individual mandate, to pay for tax cuts they couldn't otherwise get.

This is not a criticism of the CBO, which has remained properly nonpartisan and which was designed to estimate revenue flows, not personal choices -- such as how many young people would rather pay small individual mandate penalties rather than expensive Obamacare health insurance premiums.

It's a criticism of the notion that you can create neutral rules that will guide elected politicians to desired results. Politicians and the voters they represent have policy goals they believe important, and they have their own ways -- fallible but subject to criticism and debate -- to estimate the likely effects of particular policies.

My observation over the years is that systems intended to be fail-safe are sure to fail. Forty-three years of the Congressional Budget and Impoundment Control Act regime and 32 years of the opaque Byrd rule, which allows some Senate measures to pass with 50 votes whereas others require 60, have shown that both parties have figured out how to game the rules enough to foil their intended purposes.

The Constitution provides rules enough by allowing one Congress to repeal the laws made by a predecessor (rendering Obamacare's yet unimplemented Independent Payment Advisory Board unconstitutional) and by allowing each house to set its own rules. The Senate has enough other dilatory procedures to fit Thomas Jefferson's description as the saucer in which coffee can cool, and any House majority is subject to recall in 22 months.

Economic conditions often veer from the CBO's predicted flight paths, and foreign developments or domestic attacks can change national priorities. Congress should be free to respond.

The Republican tax bill is vulnerable to attack because it will cut the corporate tax rate from 35 percent, highest among developed countries, to 21 percent -- even though economists of every stripe and Barack Obama said it should be lowered.

Surprisingly, Republicans in the Trump era took the responsible step of cutting the rate, at some political risk. Any chance they'll clear away the detritus of the long-dysfunctional 1970s reforms and relegate them to the fate of bell-bottoms and disco?


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: 115th; 2018issues; barone; trumpbudget
Big changes, 81 and counting, came in 2017. Reforming government has a long way to go but the right person to do it is in office.
1 posted on 12/21/2017 9:09:45 PM PST by Oshkalaboomboom
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To: Oshkalaboomboom

There will always pot shots from the peanut gallery.

No matter what he does, it will never be enough.

Someone will raise the bar, the old record will be glossed over, and the as yet unattained goal will become something to hit him over the head with, if he doesn’t adopt the effort.

Trump’s goals are fine with me.


2 posted on 12/21/2017 9:15:50 PM PST by DoughtyOne (McConnell, Ryan, and the whole GOPe are dead to me. Are Alabamans tired of winning?)
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To: Oshkalaboomboom

Budget? We don’t need no stinking budget, we operate on CRs endlessly.
We haven’t had a budget since Usurpation Day, January 20, 2009


3 posted on 12/21/2017 9:15:56 PM PST by Lurkinanloomin (Natural Born Citizen Means Born Here of Citizen Parents-Know Islam, No Peace-No Islam, Know Peace)
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To: Oshkalaboomboom

The Washington Post says I don’t want tax cuts, I want bigger government. I wouldn’t know what to think without them.


4 posted on 12/21/2017 9:22:40 PM PST by Telepathic Intruder
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To: Oshkalaboomboom

Townhall on the warpath with “GOP bets the farm and is doomed” type stories regarding tax reform. Yet, two weeks ago it was the “GOP is doomed unless they pass tax reform.”

Getting sick of the push me pull me horse poop.


5 posted on 12/21/2017 9:27:04 PM PST by FlipWilson (The)
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To: Telepathic Intruder

Washington Post?
Didn’t there used to be a newspaper by that name?


6 posted on 12/21/2017 9:30:17 PM PST by Redbob (W.W.J.B.D. - What Would Jack Bauer Do?)
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To: Redbob

They call it “news”, but it’s just opinion reporting. “Here’s what we’re thinking today”. A lot of it is just “We hate Trump”.


7 posted on 12/21/2017 9:42:55 PM PST by Telepathic Intruder
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To: Oshkalaboomboom

It is where I would start if I were king for a day. The congressional budget act of 1974 is one of the very worst things to happen to the US since taxes. It automatically doubles the size of the feral budget about every 10 to 14 years and not only allows but requires the budget to grow faster than inflation. It is a HORRIBLE source of waste.


8 posted on 12/21/2017 9:46:44 PM PST by Sequoyah101 (It feels like we have exchanged our dreams for survival. We just have a few days that don't suck.)
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To: Oshkalaboomboom
Between zerocare and this tax cut package? Who in their right mind thinks they are similar, and will have similar consequences on the next round of elections?

I place serious money on the latter as actually being good for the country, and will be appreciated by the voter, unlike the former, which was a poorly disguised power grab.

9 posted on 12/21/2017 9:48:52 PM PST by going hot (happiness is a momma deuce)
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To: Oshkalaboomboom

In addition to requiring filibusters to be performed in person without break, all Senators should be compelled to demonstrate their mental acuity through an act of unscripted lengthy oratory several times per year. Some of these dinosaurs probably can’t cut their own food on their own, much less actually perform the functions of a senator.


10 posted on 12/21/2017 10:13:16 PM PST by jz638
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To: DoughtyOne
Yep - so many want to return the crops Trump is reaping for us back into the manure that fertilized the crops - by-passing the People and just transforming it so all we have left is the original $#1+ we had before Trump got here.

You can make some people happy but most of them love to hear themselves whine - while they castigate others for playing the victim card.....

11 posted on 12/22/2017 4:25:59 AM PST by trebb (Where in the the hell has my country gone?)
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To: Lurkinanloomin
Budget? We don’t need no stinking budget, we operate on CRs endlessly.

In 2017 the House passed the appropriations bills to have them die in the Senate. Why did the Senate not take them up and pass an actual budget?

12 posted on 12/22/2017 6:47:00 AM PST by ELS
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To: trebb

I agree with your thoughts there.


13 posted on 12/22/2017 12:08:56 PM PST by DoughtyOne (McConnell, Ryan, and the whole GOPe are dead to me. Are Alabamans tired of winning?)
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