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.

The Disappointing Joe Manchin

Senator Joe Manchin (D, WV) seemed, initially, like a center-left Democrat and a man who was capable of bipartisan work when he came on the scene a few short years ago.  Recall, for instance, his firm support of our 2nd Amendment and his opposition to much of Obamacare and to then-President Barack Obama’s (D) war on coal.

Now, though, he’s a proud member of the Progressive-Democratic Party’s caucus in the Senate, and the conflict between his claimed values and his voting against the just passed tax reform bill is showing.

“There’s some good in this bill. I acknowledge that,” Manchin said, when West Virginia radio talk show host Hoppy Kercheval asked the senator why he opposed legislation that will benefit the “vast majority” of taxpayers and businesses in the state.

“The things that you mention are correct. Initially people will benefit and see some changes in their taxes[.]”

But

Manchin blamed his opposition on projections from some analysts that the tax overhaul would increase the national debt, and that cuts directed at individuals and married couples is temporary and sunset in 2025 without further action from Congress, versus the corporate cuts, which are permanent.

And

Why did the permanency have to go on the big end, and not on the individuals who really got left behind?

He’s carefully eliding a number of things, though, with his rationalization.  One is that if he’s truly concerned about the national debt, he should get out of the way of Congressional efforts to cut Federal spending.  But he’s a Party man.  And the only way those temporary cuts actually will expire is if he and his fellow Progressive-Democrats go against Party tenets and prevent their extension or being made permanent rather than demanding the tax increases expiration would create.  But he’s a Party man; so are Progressive-Democrats all, all Party men.

Further, businesses plan—must plan—farther into the future than do us individual citizens.  They are far less agile than we can be; their costs for things like production supplies and for labor, to name just two factors, have to be planned for far in advance.  Businesses need the stability of permanence far more than we do; eight years is close enough to permanent for us.  Manchin knows this, or he’s too economically ignorant for national office.

And

He [Manchin] also complained of a coming increase in health care costs because the legislation repealed Obamacare’s individual mandate to purchase insurance.

He’s eliding another fact here, too.  Health coverage (not care) costs have been skyrocketing under Obamacare since the first months after it was enacted.  All that repealing the penalty for disobeying the Individual Mandate is doing is freeing up 13 million Americans—especially those at the lower end of the economic scale—from having to buy an Obamacare plan they can’t afford or that the rest of us can’t afford to subsidize.  Those health care costs have been sky-high all along—due to the lack of a free market in that particular industry; Obamacare only exacerbated this.  Manchin knows—or should know—this, as well.

Keep this in mind as this Progressive-Democrat runs for reelection in West Virginia next fall.

Ex-Im Bank Nominee Confirmation

The Senate Banking Committee rejected Scott Garrett, President Donald Trump’s nominee to head the Export-Import Bank.  The Wall Street Journal is casting that as “a win for crony capitalism” on the grounds that as a New Jersey Congressman, Garrett had twice voted against renewing the Ex-Im charter.

It’s not the end of the world, though; far from it. Confirming the nomination of a guy who doesn’t like the Ex-Im would have been better, but absent a quorum, which this refusal to confirm extends, the bank is unable to approve financing arrangements over $10 million.  This not a bad outcome; Ex-Im is well hamstrung, and that’s a good interim condition.

There’s More To It

As part of the (actually quite minor) snafu wherein the House and Senate passed trivially different versions of the tax reform bill, the Senate’s Parliamentarian ruled that 529 Savings Plans—modified by the tax bill to be usable for K-12 as well as secondary education expenses—cannot be used, on a straight majority vote, for K-12 homeschooling, even though formally schooled K-12 children and their parents can use the Plans.  Two icons of Progressive Democracy, Senators Bernie Sanders (I, VT) and Ron Wyden (D, OR), had objected and raised the matter to the Parliamentarian.

The Senate passed its version of the tax reform bill minus the protection for homeschooled children, since there weren’t going to be eight (or even one) Progressive-Democratic Party Senators who would vote for tax reform or lower taxes in any form and sent it back to the House where the bill was passed again and then sent to the White House for the President’s signature.

Senator Ted Cruz (R, TX, and whose 529 amendment was cut back by this maneuver) expressed his dismay.

What the Democrats did is they carved out one group, they carved out just homeschoolers, and they cut homeschoolers out. It really was shameful.

The Democrats view is they want control. They want control over everything, whether it is control over regulating an industry, control over the internet or, in this instance, control in how you educate your students.  The reason the Democrats don’t like homeschoolers is if you’re spending the time, investing the time at home teaching your kids, they can’t mandate what you’re teaching them.

Cruz is right, but that’s not all of it.  The Progressive-Democratic Party also is in the tank for the teachers unions, and homeschoolers are beyond the reach of those unions.  The Sanders-Wyden move also was in service to their unions.

In either case, or both of them, the Progressive-Democrats used children as political weapons.  That’s despicable.

Progressive-Democrats and Taxes

The Wall Street Journal asked in their Sunday op-ed how it came to be that

the party of the Kennedy tax cuts of the 1960s and the co-writers of the Reagan reform in the 1980s [became] implacably opposed to pro-growth tax policy?

The WSJ‘s editorialists should know better.  This isn’t their (or your or my) grandfather’s Democratic Party.  This is the Progressive-Democratic Party of Hillary Clinton, Barack Obama, Chuck Schumer, Elizabeth Warren, Nancy Pelosi, Steny Hoyer, and all of its rank-and-file politico members.

These politicians and their nine-year-old Progressive-Democratic Party that is the inevitable evolution of that prior entity do not want the folks who earned the money to be able to keep it and spend it IAW their own needs and wants and imperatives.  The Progressive-Democratic Party and its members need to have control over our money, and they are thoroughly dismayed over the loss to their political power that’s represented by the reduction in the amount of our money they’ll be able to control.  That’s power they’ll have much less of.

It has nothing to do with ideology.  It has nothing to do with income inequality.  It has only to do with political power.  It’s that nakedly simple.