Showing posts with label tax cuts. Show all posts
Showing posts with label tax cuts. Show all posts

Monday, June 2, 2025

DOGE, the Big Beautiful Bill and the 'Rich Men North of Richmond

 I was under the illusion that with Donald Trump back in charge and the wind at his back Washington Republicans might actually take off the gloves and say eff-it and take on the swamp.  With the failures inherent in the Big Beautiful Bill, it appears I was wrong.  I don’t blame Trump. This abysmal betrayal of the American people was written in the halls of Congress… 

The Republicans in Congress talk a good game, but when it comes to actually doing what they say they’re going to do, it turns out they’re really snake oil salesmen. Not that this is new.  Remember when they ran on killing Obamacare throughout Obama’s presidency then bungled it when Trump became president?
We’re now watching that same treachery play itself out in real time, and it involves the One Big Beautiful Bill Act that just passed the House. This monstrosity ostensibly does a number of good things.  It extends Trump’s 2017 taxes that were set to expire, it increases spending on border security and apparently it cuts federal support for Planned Parenthood.  All of these are good things… but they’re the equivalent of trying to save the Titanic by emptying water over the side one bucket at a time while a thousand gallons of water pour into the hull every second. 
What this bill doesn’t do is cut spending nor cut the deficit.  Indeed, it puts the deficit on overdrive, just as interest rates on government debt seem to be heading upward. The president’s advisor Steven Miller (who is one of the smartest guys in Washington) pushes back, by pointing out that Reagan’s tax cuts weren’t balanced by spending cuts.  True, but then Reagan didn't have, if I remember correctly, a national debt 125% the size of the GDP that needed to be serviced.
A small part of this problem has to do with the calendar.  The writing of this budget began back in December after it became clear the GOP would have both houses but before they were technically in complete control.  As such, this Frankenstein started being put together long before DOGE started showcasing exactly how dysfunctional the federal government is.  But that’s no excuse.  It’s been over 4 months since the Elon Musk managed vehicle started highlighting problems.
This One Big Beautiful Bill Act demonstrates exactly why the federal government is as screwed up as it is. They say that you can’t turn around a ship on a dime, and that’s true.  But there’s a difference between turning on a dime and setting a course, full speed ahead, for the closest iceberg. 
This bill literally adds $2.5 trillion to the government’s debt and runs a deficit larger than Biden’s last one!  At the same time it basically allows the government to go on, business as usual.  There are no major cuts to spending.  There are no elimination of departments.  There is no substantial paring of regulation.  There’s basically the same budget compiled by the Democrats, RINOs and the administrative state every year with infinitesimal changes except for the taxes.
This bill doesn’t reflect the will of the people, it reflects the will of the establishment and the swamp. 
If Congress really wanted to fix the budget they’d take to heart many of the recommendations and revelations from DOGE, as well as codify much of what Trump has done or tried to do via Executive Orders. Hell, it doesn’t even eliminate the Department of Education, something Trump explicitly ran on. 
This bill cuts $4 billion from the Inflation Reduction Act, Joe Biden’s attempt to get everything, including the kitchen sink into the budget, including green energy, social spending and taxes on the rich.  Four billion sounds like a lot until you understand that the IRA is a $1.4 trillion boondoggle
The reality is, 2/3 of the federal budget, fully $4 trillion out of $6 trillion is wealth redistribution.  Even if you argue that Social Security isn’t that, which is mostly true, and remove it, you’re still looking at almost half the federal budget being wealth distribution of one sort or another.  How much of that is waste, fraud and abuse
Elon Musk had initially suggested that he thought $2 Trillion could be cut from the budget. He lowered that target to $1 Trillion and in the first 4 months of the year DOGE has done a yeoman’s job and cut $170 billion of waste. And that’s with just 100 people on staff and facing a bureaucracy of literally millions who scheme and obfuscate at every turn in order to maintain the cash pipeline.  Imagine how much a DOGE team of 1,000 could do!
But more than actual cuts, DOGE recommended things like personnel cutscutting green energy subsidies and of course cutting regulation.  But relatively little is actually being codified in law. That’s despite the fact that 67% of Americans support DOGE cuts of at least $1 trillion, 77% support looking at the entirety of the budget to find savings and 78% support cutting spending to balance the budget.  Indeed, so little is being cut that Elon Musk has announced that he will be stepping back to refocus his efforts on his companies and playing a much smaller role in political spending.    
Inspired by promises to cut spending, taxes and regulation, MAGA voters powered Republicans to win the White House, take the Senate and retain the House. They had the richest and possibly the smartest man in the world not only on their side, but knee deep in funding them, getting them elected and working around the clock to ferret out corruption and fraud in government. Plus, every day seemed to shine more light on the corruption of Democrat / swamp machine.  As a result of all of this Republicans found themselves the beneficiaries of the most passionate electorate America may have ever seen. They were on top of the world.  And what did they do with all of this momentum? Worse than nothing, they gave us Democrat lite.
No major regulatory cuts.  No major cuts to wealth redistribution programs. No departments and few programs actually eliminated. No reining in of the imperial judiciary seeking to derail Trump at every turn.  No, rather than listen to voters and take a sledgehammer to the twin albatross of regulation and spending they use a dull putty knife to create the illusion of actual progress.
Of course we all know why nothing ever changes in Washington. Politicians go to DC and most get sucked into the Georgetown cocktail party scene grift, into being invited to pontificate on Sunday morning shows and give speeches to groups of deep pocketed donors from industries over whom them hold a sword of Damocles.
The fact that Donald Trump didn’t care about any of that, wasn’t swayed by any of that is one of the things that made him so appealing. That’s the reason MAGA put him back in the White House…
Unfortunately for the country however, the GOP in Congress is led by swamp weasels Mike Johnson and John Thune, and Trump is Gulliver to their Lilliputians. They have no real interest in upsetting the grift applecart despite what America wants.  They put America First lipstick on a Business as Usual pig and call it progress.  If the GOP loses Congress next year, look no farther than its leadership.  Like Paul Ryan and Mitch McConnel before them, they are more interested in the trappings of leadership than actually solving America’s problems. Rich Men North of Richmond indeed.

Sunday, December 12, 2010

Capitulation & a Pork King... not a good start for the GOP

Voter turnout in the United States is an embarrassment. For a republic that is supposed to be the vanguard of democracy around the world, when 55% of eligible voters casting ballots is considered good, that's rather dismaying. Of course, seeing what happens when the uninformed vote, we may want to consider putting some hurdles in place. Perhaps we should force voters to pass the same test we require of immigrants seeking citizenship.

One reason voter turnout is so low is that many voters feel that regardless of who they vote for, nothing is going to change. Given the amount of time and energy that goes into picking candidates that might seem a bit odd. For federal offices campaigns can start two years before the actual election. Primaries start out sometimes with a dozen or more contenders that frequently represent a wide spectrum of ideas within the party. After months of back and forth voters in each party nominate their standard bearers to face off in the general election. (Sometimes it’s the case that the nominees are almost mirror images of one another, as happened in New York’s 23rd Congressional district in 2009.) The election is then supposed to decide between competing views and the victor heads off to Washington. Despite all of that effort every two years, many people feel like nothing ever changes.

The 2010 election was supposed to be different. Anyone with a pulse could see that 2010 was unusual. The Tea Party movement had taken on a life of its own and became a national story throughout the cycle. The mainstream media and much of the Democratic Party spent most of the cycle telling lies about the Tea Parties and spoofing their members. On the Republican side you had candidates tacking to the right in order to gain the support of various Tea Party groups.

When the dust settled on November 3rd one might have thought that the universe had been turned upside down. The Republicans picked up 63 seats in the House and six seats in the Senate. In the matter of two years the Democrats went from having an overwhelming majority in the House to having the fewest seats they’ve held since 1947. They lost their filibuster proof majority in the Senate in January when the nominally Republican Scott Brown won in Massachusetts and on election day they lost six more seats. Come January 2011 one might imagine that America had actually turned off the Road to Serfdom and decided to pursue prosperity.

Then again maybe not… Unfortunately, if the events of the last week are any indication of what’s coming prosperity may be delayed somewhat. Two events demonstrate that the voters who abstain from voting because it doesn’t matter who’s in power just might be right.

The first involves the hierarchy in the House. On Wednesday the Republican Steering Committee assigned the chairmanship of the single most powerful committee in House: Appropriations. The House Appropriations Committee controls essentially all federal spending. Simply put, it doesn’t matter what Congress or the President say or do, if Congress doesn’t appropriate money for something, it’s not likely to get done, and almost all appropriations must come through the House Appropriations Committee. And so, in this atmosphere of change where voters stood up and demanded fiscal restraint, who did the GOP put in charge of the purse strings of almost 30% of GDP? One of the Young Guns who live and breathe fiscal restraint? No – although none of the three were on the Committee in the first place. A hardened veteran of the House with bonafide spending restraint credentials? No. Rather, John Boehner and the Steering Committee put Hal Rogers in charge. Who’s Hal Rogers? Just a 30 year house veteran known in his home state of Kentucky as the “Prince of Pork” for his success in sending American taxpayers money to the Bluegrass State. Just in the last three years Congressman Rogers secured 135 earmarks worth $246.4 million of your money. (He now claims he has seen the light and is swearing off earmarks…) If this isn’t a case of putting the fox in charge of the henhouse then the phrase has no meaning. In a universe where the government spends trillions of dollars it neither has nor should be spending in the first place, this appointment says much about what the GOP really stands for.

The second wound the GOP inflicted on America last week was the agreement with President Obama to extend the Bush tax cuts. While an extension of the tax cuts was important, the GOP needlessly gave away the farm in order to get it. Having come off a resounding victory where the country clearly voiced its desire for a change in direction and demanded a halt to government spending, there was no need for the GOP to capitulate to Democrat spending demands. Nonetheless, Mitch McConnell and his cronies did so and agreed to extend unemployment benefits for another full year - for a total of 3 years of unemployment benefits. What’s worse, before even making it to the House floor the bill has been loaded with an extension of ethanol credits (AKA subsidies to farmers), subsidies for energy efficient appliances and benefits for mass-transit employees. To an objective observer this is nothing but Washington as usual. The GOP had an opportunity to take a stand and send a clear message to the Democrats, and more importantly to the American people who will be voting in the 2012 elections. Had they demanded a clean vote on a full extension of the tax cuts, the Democrats, who still control both houses, would likely have refused or defeated it. Taxes would have then gone up on January 1st. At that point, with control in the House and a much stronger hand in the Senate, the GOP could have brought a clean bill to the floor and it would have passed. Despite his class warfare rhetoric, President Obama would have likely felt compelled to sign it. Either way, the issue would have brought to the fore a clarifying fight where the GOP would have won the day and eventually the cuts. But alas it seems that is not how things seem to work in Washington …

It’s often said that you don’t get a second chance to make a good first impression. Conservatives can only hope that that is not true for the GOP because if last week’s actions a precursor of two more years of go-along-to-get-along politics as usual, then Barack Obama is going to be a happy man as he is elected to his second term when conservatives stay home after rightfully concluding that there is really little difference between the parties. If such a disaster occurs the GOP should be laid to rest with Abraham Lincoln and America should look for a national Tea Party to help rescue the Republic.