The hill reported that Senate Majority leader Mitch McConnell, a stand-in for Harry Reid, is preparing for a tough battle over the budget negotiations in the fall.
“He wants to keep the government open, avoid a federal default and avoid alienating his conservative base, which wants big concessions connected to legislation funding the government and raising the debt ceiling,” the hill wrote.
Lots of luck with that last one.
The battle is actually over. The only thing that is not over is the wringing of hands and the tough talk meant to fool the masses. If the only tool McConnell has – defunding the government agencies – is off the table, then he has no leverage. Obama loves nothing better than an enemy with no leverage.
Government funding expires on Sept. 30 and that’s when the shenanigans will begin.
Democrats, led by hack Chuck Schumer, demand more spending on entitlements to buy votes and they want it offset with tax increases and taxes masquerading as fees or investments.
A senior Democratic aide said those offsets will get rid of the budget caps – the ones destroying our military. What they want are more taxes on international corporations to keep them from going overseas. They will fine them if they do. It’s not hard to foresee corporations leaving the U.S. if this comes to pass. At least it’s not hard to see unless you’re a Democrat.
“Grover Norquist, president of Americans for Tax Reform and guardian of the Taxpayer Protection Pledge, says requiring companies to repatriate foreign profits — instead of giving them the option of doing so voluntarily — counts as a tax hike,” the hill reported.
This next note by the hill is particularly interesting, McConnell does not think there’s enough money from overseas corporate tax reform to pay for both a reduction in rates and a highway bill. He suspects Schumer and House Ways and Means Committee Chairman Paul Ryan (R-Wis.), who is exploring options with Treasury Secretary Jack Lew, will be tempted to double count the proceeds.
Yikes! Both Schumer and Ryan want to double count?
Democrats claim they will use the money for the highway system. This is what we need! More federal control over our highways with the biggest ATM ever!
They will allegedly put the money in one of their lockboxes, but, amazingly, they have no clue as to whether or not it will cover expenses.
McConnell wants to keep tax talks out of the discussion of spending and the highway bill and he wants both of those issues considered separately from each other. For that, he scores points.
Tax reform that leaves out small businesses that file as individual taxpayers is not something McConnell is crazy about. Score another point for McConnell if he’s telling the truth.
The only way defense spending will go up is if non-defense spending goes up with it.
In all likelihood the mandatory spending cuts will remain in place and our military will continue to deteriorate until we have a fleet and an Air Force the size of George Washington’s. Channeling Lafayette!
At least they don’t want to add to the deficit but entitlement reform would be nice.
Democrats will insist on a clean debt-limit increase and McConnell will likely eventually agree to it, knowing they have the upper hand, according to the hill. That’s true because we have no leverage. Clean bill, here we come!
Maybe the battle Mitch will have is actually with the Republicans and not the Democrats. What do you think? Do Republicans have no choice? The Founding Fathers did put the option of defunding the government into the Constitution for a reason.