Posts tagged congress
As we get near crunch time for the fiscal cliff, CRFB released a new brief today on how the negotiations can produce an acceptable deal. Read it at http://crfb.org/document/report-what-we-hope-see-fiscal-cliff-negotiations
Decisions, Decisions – Washington waits with bated breath for the Supreme Court to rule Thursday on the constitutionality of the Affordable Care Act, the 2010 health care reform law. Not only will the decision have repercussions for politics and health care, it will also impact the federal budget significantly. In a blog last week, we laid out how the federal budget will be affected in different scenarios. In another blog post, we also noted that no matter what the Supreme Court says, policymakers will have a lot of work ahead in bending the health care cost growth curve down, since rising health care costs will be one of the biggest drivers of our national debt going forward. Also on Thursday, the House is expected to vote on a resolution on holding Attorney General Eric Holder in contempt of Congress involving the “Fast and Furious” investigation. There is a lot of contempt to go around in Washington. Partisan disdain is getting in the way of dealing with issues such as the national debt. Meanwhile, the contempt for politicians among voters grows as they cannot even accomplish relatively simple tasks like adopting a budget. Whether lawmakers can rise above the mutual contempt will be on display this week as they seek to renew highway funding and lower student loan interest rates ahead of deadlines.
At the end of 2012 and the beginning of 2013, many major fiscal events are set to occur all at once. They include the expiration of the 2001/03/10 tax cuts, the winding down of certain jobs provisions, the activation of the $1.2 trillion across-the-board “sequester,” an immediate and steep reduction in Medicare physician payments, the end of current AMT patches, and the need to once again raise the country’s debt ceiling.
Mad, Mad World – There’s enough madness in DC to go around. Lawmakers from opposite parties seem perpetually angry at each other, yet they are moving in lockstep towards what Federal Reserve Chairman Ben Bernanke recently called a “fiscal cliff” at the end of the year. And expecting Congress to adopt a budget has become akin to picking a 16th seed to win. Unlike the big tourney, there doesn’t seem to be an end in sight to this madness.
Deficit Secondary in Primary – The presidential primary campaign hits a key point this week as “Super Tuesday” contests in several states may go a long ways in determining who will face off against President Obama in November. Although voters constantly rank the economy and federal budget deficit as the top two issues, they seem to have taken a back seat to social issues in the campaign right now. However, CRFB’s U.S. Budget Watch project seeks to elevate fiscal policy in the election. It started with “The 12 Principles of Fiscal Policy for the 2012 Campaign” and recently featured the release of “Primary Numbers: The GOP Candidates and the National Debt” – which examined how the candidates’ policy positions would affect the budget.
U.S. As Charity Case – Move over Easter Seals, the national debt is becoming the hot new charitable cause. Billionaire Warren Buffett has promised to match the donations of any member of Congress towards reducing the national debt. He also agreed to match the $300 donation of a high school student. So, should Jerry’s Kids be worried? Economists have discussed how the mounting national debt could crowd out private investment, but will it also crowd out giving to charitable causes? Maybe the charity drives should be aimed towards curing a dysfunctional Washington.
Federal Reserve Chair Ben Bernanke testified in Congress yesterday that he supports a “Go Big” approach to reducing the national debt. See more Go Big support here
A look at some of the ideas for extending the payroll tax holiday and other provisions and their impact on the debt. Read more
A look at the costs of extending the payroll tax holiday and other provisions that a congressional conference committee is considering. Read more
The Conference Committee should:
1. Include policies to put in place, or move the country toward, a
comprehensive plan to stabilize and reduce long-term debt.
2. Ensure that the costs of any extensions are fully offset over a five
to ten-year period.
3. Put in place permanent solutions for expiring provisions where
appropriate.The Conference Committee should not:
1. Make temporary stimulus or job creation measures permanent,
or make it easier to continue extending them in the future.
2. Dismantle the sequester or otherwise add to the deficit.
3. Rely on budget gimmicks for offsets.
