Tag Archives: government spending

A new “Grand Bargain” for Americans to reduce US debt

Source: Heartland Institute
by Barry Poulson & John Merrifield

“The term ‘Grand Bargain’ is now infamously associated with failed budget negotiations between the executive branch and Congress, most notably negotiations between former Republican House Speaker John Boehner of Ohio and President Barack Obama. The outcome of this failure to agree on a budget has led the federal debt to climb to $20 trillion, and unconstrained growth in deficits and debt is projected to continue in the coming decades. … In our forthcoming book, ‘Restoring America’s Fiscal Constitution,’ we show how fiscal rules could be designed to balance the budget and reduce debt to tolerable levels over a two-decade period. Of course, fiscal discipline will not be easy.” [editor’s note: Any proposed “bargain” with politicians over spending/debt founders on the fact that they’re lying sacks of shit who can’t be trusted to keep their word – TLK] (10/11/17)


Trump budget director: What, me worry (about the national debt)?

Source: The Daily Beast
by Matt Lewis

“It’s fun to debate whether Mulvaney has betrayed deeply held free market principles, in exchange for a belief that spending can stimulate the economy. But as Morrissey and Weissman suggest, the big story here seems to be the situational ethics. Just as homelessness seems to cease being a problem worthy of coverage when Democrats are in office, hand-wringing about spending our children’s inheritance seems to go out the window once a Republican is in the White House. How many times did Paul Ryan say ‘we’ve got to tackle this debt crisis before it tackles us’ during the Obama era? Mulvaney was instrumental in making the point that this was an existential moral issue. ‘Anybody who is up to speed on budget issues should be scared to death by what’s happening with the debt and the deficit in this country,’ he said in 2011. ‘If you’re not losing sleep over it, then you’re simply not paying attention.'” (10/09/17)


Will tax reform increase or limit liberty?

Source: Campaign For Liberty
by Ron Paul

“Pairing tax cuts with increases in federal spending and debt — and the drafters of the framework admit their plan will increase the debt by at least $2.2 trillion — means that the economic benefit from the tax cuts will be outweighed by the economic harm caused by the increase in debt. Increasing the debt also means the Federal Reserve will further devalue the dollar in order to monetize that debt. While the Republican tax and budget plans predict uninterrupted economic growth, the US economy is far more likely to undergo a major economic crisis caused by a rejection of the dollar’s world reserve currency status. While all supporters of individual liberty and sound economics should support tax cuts, the Republicans’ failure to cut spending means that their tax plan will do little to increase liberty or prosperity.” (10/09/17)


US House moves forward on tax reform by adopting budget plan

Source: Reuters

“The U.S. House of Representatives took a major step toward overhauling the U.S. tax code on Thursday by approving a fiscal 2018 budget resolution intended to aid the future passage of tax legislation, and sending the measure on to the Senate. The spending blueprint for fiscal year 2018, adopted by a 219-206 vote, would unlock a legislative tool allowing Republicans to pass tax legislation through the Senate while avoiding opposition from Democrats who control 48 of the upper chamber’s 100 seats. But the action also sets the stage for a potential clash with Senate Republicans, who are considering a markedly different spending plan. While the House budget calls for revenue-neutral tax reform, a proposed Senate plan would allow tax legislation to add $1.5 trillion to the deficit.” (10/05/17)


End government borrowing

Source: American Institute for Economic Research
by Sheldon Richman

“Because the sky is apparently the limit to its debt, the government actually has a debt sky. Trump reportedly favors eliminating the debt ceiling. Senate Minority Leader Charles Schumer (D-NY) agrees with Trump, and the two are said to have a ‘gentlemen’s agreement’ on this issue. Presidents dislike debt-ceiling legislation because members of Congress often include unrelated budget items that would otherwise be vetoed. While we might appreciate an end to the charade, this nevertheless seems to be ‘progress’ in the wrong direction. The right direction would be toward eliminating government borrowing by requiring a balanced budget — at a far lower level than the current $4.147 trillion.” (09/25/17)


Don’t worry about short-term deficit

Source: USA Today
by Chris Edwards

“With tweets, speeches and meetings, President Trump is urging Congress to cut taxes by the end of the year. The president argues that our high business taxes are driving investment abroad and hurting U.S. workers. Most members of Congress agree that we need to reduce our 35% federal corporate tax rate, which is one of the highest in the world. The disagreement comes when Trump says he wants ‘the biggest tax cut … in the history of our country,’ as he tweeted the other day. He seems to be promising to vastly slash Uncle Sam’s grab from our wallets. That would be great if Trump and Congress matched the tax cuts with spending cuts. But without the latter, deficits would rise and simply impose higher taxes on people down the road. … Alas, Republicans cannot seem to cut spending, and they have not yet agreed on which tax breaks to repeal. Without such deficit offsets, they should scale back their tax package to just the most pro-growth elements, particularly a corporate tax rate cut.” (09/17/17)


Debt ceiling, now more than ever

Source: The American Spectator
by Hunt Lawrence & Daniel J Flynn

“Republicans made a balanced-budget amendment the first plank in their ten-point Contract with America. Twenty-three-years later, the GOP’s most powerful deprioritize the debt, deficits, and spending. Words made this obvious in recent days. Numbers made it apparent, too. The national debt eclipsed the $20 trillion mark last week. For all but four years during the new century, Republicans have controlled the House, where spending bills originate. The Republicans now control both houses of Congress and the presidency. Blaming Democrats for future increases in the debt, which skyrocketed more than $300 billion in a single day last week, strikes as something only stalwarts swear by.” (09/14/17)


Our amazing debt

Source: Reason

“The national debt just skipped past $20 trillion, which puts America’s indebtedness at ‘unfathomably staggering.’ (And the chunk you owe personally at ‘a lot.’) The math behind the national debt is so complex that Reason TV decided to lean on ‘Cosmos’ to explain it.” [Flash video] (09/12/17)


Mnuchin: Trump will “demand” increase in military spending

Source: The Hill

“President Trump will ‘demand’ an increase in military spending when he and Congress negotiate an end-of-year budget deal, his Treasury secretary said Tuesday. Steven Mnuchin said at a conference that Trump agreed to a three-month deal on the budget and debt limit last week because the alternative was a one year-deal, which would have hindered military spending.” (09/12/17)


Does the debt ceiling do any good?

Source: Free Press Publications
by Darryl W Perry

“Since its creation, the debt ceiling has never been lowered — EVER — and has been increased 74 times since 1962. Conservative hero Ronald Reagan allowed the debt ceiling to be raised 18 times during his Presidency, and it was raised (or temporarily suspended) another 27 times since 1988. The debt ceiling currently stands at $19.8 trillion and President Trump is working on a deal with Congress to eliminate the debt ceiling altogether. To say this is akin to giving a drunken sailor on shore leave a credit card with no spending limit would be an insult to the drunken sailor on shore leave, because the drunken sailor would still be left with the consequences of his overspending.” [text, Flash audio, or MP3]