The Budget Deal

…was just passed in the small hours of Friday morning.  The high points of what it does is provide funding for the Federal government into late March, provide a budget good for two years, raise the debt ceiling a smidge, and increase spending authorization for defense by $165 billion over the next two years and for domestic items by $131 billion over those two years.  It does not include anything regarding immigration, particularly DACA, despite House Minority Leader Nancy Pelosi’s (D, CA) 8-hour speech Thursday, nor does it include anything regarding welfare reform.

The lack of immigration matters in the budget deal is appropriate; Pelosi’s long harangue notwithstanding.  Immigration has nothing to do with the budget, and it will be handled separately, as both House Speaker Paul Ryan (R, WI) and Senate Majority Leader Mitch McConnell (R, KY) have said repeatedly.  The lack of welfare reform does matter, but it needn’t have been a deal breaker in the present instant.  There needs to be a stronger consensus both in Congress and in the nation before that can be done properly—recall the fiasco that is Obamacare.

A number of Republicans in both houses objected to the deal, though, and voted against it and held it up in the Senate.  Senator Rand Paul (R, KY) wanted a vote on his amendment to restore the prior spending caps, which would have eliminated those $196 billion in spending increases.  The Conservative Caucus of House Republicans also objected to the vasty spending increases.  In all cases, those increases will add to the Federal budget deficit and through that to the national debt by up to $1 trillion, depending on how much our growing economy adds to Federal revenues.

Except.

One thing the budget deal does not do, and this is a Critical Item, is require all that money to be spent.  The bill is an authorization bill; it sets an outer bound on how much can be spent.  That’s all it does.  Actual spending will come from the several appropriation bills that must now be passed.  This is where those Republicans’ concerns can be addressed, and they should be; the concerns are entirely valid.

In the coming appropriations bills, Republicans must hold the line on the defense spending increases—there’s nothing domestic of any import if we can’t support our friends and allies or even defend ourselves—and reduce spending in other, domestic, areas (including welfare reform, even if only a series of tweaks this year) to pay for the defense increases.  And that includes on holding the line on those domestic appropriations bills already passed by the House, which were passed under the lower caps.

The Progressive-Democrats in Congress will howl over this; they view authorization to spend as an absolute requirement to spend.  Let them howl.  Let the Progressive-Democrats continue to be the heavy spending, deficits and debt be damned, party.  Let the Progressive-Democrats run on a platform of profligate spending.  They’ll drag out every tear-jerking trope they can dream up—it’s for the children, our grandmas are getting pushed off the cliff, think of the poor people in Illinois and Connecticut, and on and on.

Americans aren’t as stupid as the Progressive-Democrats make us out to be.  Our kids, our parents, our poor regardless of where they live will be better off for that spending discipline.  Let the Progressive-Democrats try to sell their snake oil budgeting that Government spending and Government income have nothing to do with each other.

One more thing.  The budget deal, good for two years like it is, means Republicans won’t be able to pass anything, including those appropriations bills, without nine Senate Progressive-Democrats on board.  Appropriations bills aren’t subject to reconciliation votes.  Without actual spending authorization, the Federal government will shut down in late March.  Without nine Democrats to support ending a Senate filibuster, spending won’t be authorized.  Let Senate Minority Leader Chuck Schumer (D, NY) shut down the government again because he can’t get wastrel spending done.  Let the Progressive-Democrats throw another temper tantrum.  That won’t play any better than the just ended Schumer Shutdown did.

Federal Funds Redistributions

The Department of Justice says it’s going to issue subpoenas, if necessary, to get sanctuary-related documents from cities who have proclaimed themselves sanctuary cities.  Sarah Isgur Flores, DoJ Public Affairs Director:

These are the jurisdictions that have politicians that release criminal aliens back onto the street.

In conjunction with that, she says that, if further necessary, DoJ will redirect Byrne Grant* funds to other jurisdictions that actively support law enforcement rather than picking and choosing those laws that are convenient to them and ignoring others.

Strange bedfellows: this sort of thing should get the Progressive-Democrats fronting for sanctuary jurisdictions on board with many of us Conservatives working to end Federal funds redistribution of one State’s citizens’ tax monies to another State’s government.  That would reduce the ability of the Federal government to push around any of the States on domestic matters.

 

*Byrne Grant: Edward Byrne Memorial Justice Assistance Grant Program, a major source of funding for state and local (and tribal) jurisdictions in their fight against crime.  Ironically, it’s named for NYPD Officer Edward Byrne, who was killed 40 years ago protecting an immigrant witness who was to testify against drug dealers.  Two things that sound mighty familiar today.

Taxing and Spending in New York

Bookending (in more than one sense of the term) California’s move to confiscate business’ tax cuts, New York’s Progressive-Democrat governor Andrew Cuomo wants to increase the taxes levied on that State’s citizens by $1 billion.  He’s claiming, in all seriousness,

You can’t possibly get anywhere near where you want to be on education and health care unless you raise revenues.  It’s just too big a deficit, and the choice of cutting education or cutting health care I don’t think is a place anyone wants to go to this year. So you have to raise revenue.

This is a false choice.  The largest cause of the State’s deficit, after all, is its spending level, not the size of its revenue.  Thus, one choice Cuomo is carefully eliding is this: the State’s government could cut spending across the board; there is, after all, more going on in New York than just education and health coverage costs.

Alternatively (which Cuomo also avoids mentioning), the State’s government could simply reallocate existing spending into education and health care.

Still another alternative unmentioned, the State’s government could fix its runaway pension funds for its public unions by using accurate projections of investment return rates and increasing the contributions union members and the unions themselves make to the funds.  Along with this, the State’s government could fix its health coverage program, replacing its version of Obamacare with market-based solutions, and freeing the citizens to buy the health plans that suit them rather than suiting Government.  Or not buy at all.

There’s simply no need for more revenue for the State’s government, no need to take even more money out of the pockets of the State’s citizens.

Unfortunately, neither the man nor his Party cronies in the legislature are emotionally capable of conceiving of actually cutting spending, or even of reallocating existing spending.

Value in Spending vs Parity in Spending

The House and Senate leadership met Wednesday in Speaker Paul Ryan’s (R, WI) office, along with White House Director of Legislative Affairs Marc Short and OMB Director Mick Mulvaney, to see if there’s any possibility of the Progressive-Democrats working with Republicans to get Federal spending under control.  It seems not.

Both parties claim to want to increase our ability to defend ourselves and our friends and allies, and so both claim to want to increase defense spending.  Only one of the two seems serious, however.  House Minority Leader Nancy Pelosi (D, CA):

In these talks, Leader Schumer and I will continue to insist on parity in the caps[.]

Parity in the spending caps, she meant.  The icon of Progressive-Democracy in Congress is conflating parity with equal value.

There will be no domestic spending available if we can’t defend ourselves.  We will have nothing with which to deal with the opioid epidemic, veterans, pensions, disaster relief, National Institutes of Health, Children’s Health Insurance Program and community health centers, or infrastructure rebuilding, or education, or Social Security, or Medicare, or Medicaid or anything else if we can’t defend ourselves.

Or if we merely go broke, whether by being forced to spend all of our money just to pay the vig on that debt or by defaulting outright.

Parity—this is not the same as equal value. It is, however, another example of the Progressive-Democrats’ constant demand for equal outcomes rather than true equality.

It may be time to kill the filibuster on matters involving the Federal budget and spending bills, at least for the current Congressional session.  The alternative, if the Republicans stand tall on spending, along with getting their messaging skills up to snuff—finally—is to let the Progressive-Democrats shut down the Federal government over their demand to spend us into oblivion as their price for letting us spend enough on defense to rebuild our military.

To do any of that, though, Republicans also will have to understand that parity is not equality.

Deficits as Cudgel?

Gerald Seib says that’s what the Progressive-Democrats in Congress fear the Republicans will use them for.

Democrats worry that Republicans will simply use the rising deficits they are creating as an excuse to cut government spending on domestic programs important to Democrats—in the vernacular, that the tax bill will “starve the beast” of the federal government of the money it needs to keep spending at current levels.

I certainly hope those deficits will be used as the reason for cutting government spending.  The Federal government spends way too much of our money, and it does so without regard for whose money it is and without regard for the amount of revenue that taxes bring in—deficit spending is enthusiastically pursued regardless of tax rates or revenues.

Federal spending needs to be cut back drastically, not just on domestic programs important to Progressive-Democrats, but on all domestic programs (other than defense, which already is so low that our military cannot reliably win a war against a regional power like Russia, much less a rapidly expanding one like the People’s Republic of China.  We’ve even had to abandon our Cold War mission of being able to fight and win two separate wars simultaneously).  A good start would be a 10% across the board cut on all extant programs, and then begin cutting seriously from there.

And yes, that includes privatizing Social Security and Medicare and block granting Medicaid transfer payments to the States without strings—they know better than the Feds how to spend those funds State-domestically, anyway.  After conversion, the Feds then should reduce those Year Zero block grants by [10%] per year after that until there are no more Federal Medicaid transfers.

An additional step for Federal spending curtailment is to consolidate all current Federal transfers into a single block grant for each State and then reducing the size of that grant along the schedule above.  In this way, States like New York, California, and the rest of the dozen or so States that send more of their citizens’ tax money to the Federal government than they get back could keep all of their citizens’ money and spend it within their State in accordance with those citizens’ imperatives.  Surely even Progressive-Democrats could get behind a program that lets their constituents keep their money local—that’s more for the local Progressive-Democrats to spend.

Net recipient States would be able to keep all of their citizens’ tax money, also, reducing the alleged “need” for Federal transfers.

Additional cost saving: the middle-man bureaucracies, with their inherent costs, would be eliminated, too.

The only deviation from eliminating such knee-jerk routine transfers should be in times of declared State or regional emergency.