Sunday, September 6, 2015

Congress and the Budget: Danger Ahead

While most of us have been consumed with the three-ring circus that has been the presidential election campaign, the regular business of government has been slowly grinding on. Unfortunately, several budgetary items facing Congress this fall threaten another government shutdown, with all the political theater and economic uncertainty that accompany such events. And, crucially, all the budgetary items on the agenda hold the potential for tearing the congressional GOP apart while angering both the Republican base and moderate voters.

First up will be appropriations. By law, Congress is supposed to pass all twelve appropriations bills to fund the federal government by October 1, when the new fiscal year begins. As has been the case since 1994, it is unlikely to do so. So far, the House has passed just six, although the remaining six have made it through committee and are ready for action on the floor.

But the bigger problem, as usual, will be in the Senate, where Democrats are threatening to filibuster, effectively shutting down the government, unless the Republicans agree to lift the sequester caps on domestic spending. In fact, the Democrats have already prevented the Senate from taking up the defense appropriations bill. That bill would increase defense spending, under the guise of funding for overseas contingency operations, by $39 billion above the level called for by sequestration. The Democratic leadership is demanding that the defense increase be matched at least dollar for dollar by increases in domestic spending. But other Democrats are reportedly seeking even bigger spending increases, as well as tax hikes.

http://www.cato.org/publications/commentary/congress-budget-danger-ahead

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