Supplemental Surprise: Senate Boosts Wage Tax Package

The saga of the supplemental continues, as the Senate rejected an amendment by Sen. Thad Cochran (R-MS) this afternoon, by a 48-50 vote, to strip language requiring the U.S. to start withdrawing troops from Iraq within four month, with the goal of removing all troops by March 31, 2008.

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Blue Dogs Decide Dem. Leadership Porridge Just Right

This afternoon, House Democrats announced they would permit consideration of three substitute budget proposals during debate of the FY 2008 budget resolution. House Majority Leader Steny Hoyer (D-MD) said today he expected substitute budgets from the Progressive Caucus, the Congressional Black Caucus (CBC), and the House Republicans. While this is far more options than Representatives have had in the past under Republican rule, Some feel a notable omission from that list is the fiscally conservative Democratic Blue Dog Coalition. While the Blue Dogs are unlikely to support the Black Caucus budget or the Progressive budget because the spending levels are a bit too hot for their taste, they will not support the Republican budget either, because the tax policies and low spending levels make cold. By opting not to offer their own version, it seems members of the Blue Dogs Coalition felt the main democratic proposal combined the right blend of fiscal responsibility and funding for pressing needs. While reestablishing a commitment to paying for changes to mandatory spending and taxes in the budget, the Democratic Leadership plan still boosts discretionary spending levels for under funded and neglected national priorities and investments, such as Head Start, child care, and housing. The Democrats' budget would allow about $25 billion more in discretionary spending in 2008 than President Bush has requested, and about $7 billion more than the Senate-adopted plan. In addition, like the Senate plan, the House budget would add additional funds (and deficit-neutral offsets) for mandatory nutrition and health care programs. While this is only a first step in repairing some of the damage done to important priorities in the federal budget over the past six years and before, it seems the Democrats have used a recipe that is neither too hot nor too cold, but just about right.

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The Budget Bigotry of Low Expectations

In his Buzz Column this week, Budget Buffet ($), Stan Collender expresses surprise "that a budget resolution is moving ahead at all, let along so quickly," applauding the seriousness and fiscal discipline with which Congress is pursuing the budget process thus far. Yes, after years of feckless fiscal policy in Washington, "this has the possibility of being a turning point."

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Health Care's A Budget Issue Now

Jesse Jackson has a good editorial on the African American children being left behind by federal policy. One passage I thought needed playing up: We need longer school years and far better teachers, and teacher education. We need less discrimination in spending, in discipline, in advanced placement. Some of this costs money. But, Williams says, we're not spending the money we currently have well. For example, our broken health-care system is killing school budgets. Health-care costs are going up 10 to 15 percent a year, far outstripping normal increases in public funding.

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Rangel To Push Privatization Repeal

Good news on the IRS privatization front- Chairman of the House Ways and Means Committee Charles Rangel (D-NY) has stated his intention to repeal the IRS privatization program and in the meantime has asked that IRS not issue any more contracts to private debt collectors. Rep. Rangel's interest is most likely in moving forward with H.R. 695, a bill co-sponsored by Reps. Chris Van Hollen (D-MD) and Steve Rothman (D-NJ) with bipartisan support that would end the privatization program once and for all. Again, this is great news, and we hope that Rep. Rangel moves forward on this issue soon.

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The New Senate PAYGO Rule

The new Senate pay-as-you-go (PAYGO) rule adopted last week as part of the budget resolution makes some key changes to the previous version, created in the FY04 Budget Resolution. It:
  • creates a point of order against legislation that would worsen the deficit for any of the following time periods: FY07, FY08, the five-year period from FY08-12, or the five-year period from FY13-17
  • remains in effect through 2017

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Senate Budget Debate: A Glance Back at the Estate Tax

In her recent blog Estate Tax: The Senate Does the Right Thing Rejecting Kyl and Nelson Amendments, Linda Beale, law professor at Wayne State University Law School, expresses gratitude that the Senate did not adopt any of the three estate tax amendments it voted on last week during its budget resolution deliberations. Professor Beale goes on to add:

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GSA on Front Page, Again

General Services Administrator Lurita Doan is on the front page of the Washington Post once again. This article plays up the allegation that GSA held events to help Republican candidates in the 2006 election. Not much new is revealed in the article, though if you're not familiar with the whole ordeal it's a good place to start.

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The House Budget Resolution and the PAYGO Rule

Now that the House Budget Committee has approved its budget resolution for fiscal year 2008 (we noted its differences with its Senate counterpart here), the full House will take it up, with a final vote expected next week. The Center of Budget provides a thorough summary of the House resolution, which points out that the budget plan "is notable for adhering to the Pay-As-You-Go rule the House adopted earlier this year." Ironically, however, the House PAYGO rule does not actually require a deficit netural budget for FY 2008:

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Budget Resolution Advances in the Senate, 52-47

The Senate approved a $2.9 trillion fiscal 2008 budget resolution this afternoon, 52-47. Maine GOP Sens. Olympia Snowe and Susan Collins joined the 50 Democrats voting to adopt the budget plan, which aims to balance by budget by 2012 and provides $18 billion more in domestic discretionary spending next year than President Bush's proposed budget. The resolution restores a pay-as-you-go point (PAYGO) of order against legislation that would cut taxes or increase mandatory spending without offsets.

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