The Setup Is Quiet But Would Have Horrible Result
Steve Dittmer | AFF Sentinel
Colorado Springs, CO
Originally sent to subscribers 02/16/24
“The trouble with these so-called bipartisan commissions is that they start raising taxes at the very first meeting even before the first cup of coffee has been poured,” Larry Kudlow said.
Remember, Kudlow knows a bit about how government and politics works, from inside the New York Fed, OMB under Ronald Reagan and from inside the Trump Administration as director of the National Economic Council.
What Kudlow was referring to was a so-called Bipartisan Fiscal Commission cooked up by Sen. Mitt Romney (R-UT) and Sen. Joe Manchin (D-WV). They are mooting it as a way to get spending under control and cut the deficit. The Commission would be appointed by the House and Senate leadership, six members from each chamber, three from each party and four “outside experts.”
They would take over a year to study the problem, come up with an implementing legislative package and submit to Congress. If both houses agree to take up the plan, it would progress under as expedited schedule, with a very limited time to consider it and no amendments would be allowed. While the Senate would conform to the normal rules of 60 votes for cloture, passing the package would only require a simple majority, therefore, negating the Senate’s 60-vote rule.
Grover Norquist, president of Americans for Tax Reform (ATR) pointed out first that this maneuver is an end run around the House Ways and Means Committee, which reflects a Republican majority the Democrats want to neuter.
Of course, Constitutionally, all spending bills must originate in the House but Congress has developed a habit of ignoring that clause when the Democrats really want to pass something. Not only does such a commission go around Ways and Means but it also negates the Republican advantage by making the “bipartisan” commission makeup even numbers from both parties.
The only thing they didn’t propose is inserting a tie-breaking “independent” in the Commission’s makeup so that they could insert Sen. Bernie Sanders to put afterburners on the spending impetus.
Going around the Ways and Means Committee is important, as its chairman, Rep. Jason Smith (R-MO), has said emphatically that he is against tax increases. And in effect, the Democrats are saying forget about all the trillions in spending that has created the inflation rocking the entire economy and instead, let’s talk about tax increases, Norquist said.
Norquist remembers something we remember about the Reagan years. We recall that Reagan was able to get his tax cuts through -- which boosted the economy out of the horrible Carter years -- but the spending cuts promised were never enacted. Norquist recalls that the political deal was supposed to be three dollars in spending cuts for every one dollar of tax increases. But the spending increases happened -- and the spending cuts never materialized.
A similar deal was agreed to by President H. W. Bush but on a two to one ratio. But the Gramm-Rudman spending caps were already in place. Under the new deal, Congress broke the caps, Bush was blamed for the new tax increases -- breaking his no new taxes pledge -- and he lost his re-election bid as punishment from the voters.
Norquist added that the trouble with Commissions like this is such a group psychologically puts the emphasis on spending on equal footing with cuts, when the spending cuts need to be much more numerous and bigger than the increases if any debt or deficit progress is to be make.
Regarding the political realities, Norquist said it will be difficult to find tax cutting Republicans willing to spend over a year of their life on a commission saying no, no, no to Democrats who want to spend, spend, spend.
Norquist has collected video clips of numerous Republicans -- including Rep. Jodey Arrington from Texas -- saying they’re open to tax increases. Arrington is chairman of the House Budget Committee, on the Ways and Means Committee and the Subcommittee on Tax Policy. His website trumpets his being “well-positioned” to put Texas values on the “national stage,” prioritizing “agriculture, energy and healthcare,” advocating for “farmer[s] and ranchers, senior citizens, and every West Texan…”
It's not only some Republicans’ professed willingness to raise taxes, it’s how the Democrats use any verbiage about tax increases or cuts in spending in campaign ads, misleading, twisting and editing any statements to put the worst possible spin on Republicans handling of the government. The efforts in the media are always about throwing granny off the cliff, starving government for funds to help the poor, wrecking middle class families, etc. etc.
The way out of our nation’s economic crisis is a two-pronged effort to cut spending and foster private sector economic growth. Instead, the Democrats want to end the pro-growth tax cuts of 2017, and some Republicans are wishy washy on the whole subject of cutting taxes, fostering private sector growth and growing government revenues by growing the economy and subsequent government revenue.
Much of the economic activity that’s been propping up our GDP currently has been government spending and new government jobs. That’s not the way to long-term economic growth and stability.
Romney and Manchin are both leaving. Norquist equated it, politically speaking, to rolling a grenade into the room as they go out the door.
Kudlow said Republicans should not fall for another phony fiscal commission.
Norquist explained that time is of the essence in contacting your members of Congress, as even some of the Ways and Means Committee members they have contacted were not aware of this end-run attempt. The amendment to authorize this Commission could be slipped into any bill, including the next government funding bill or Continuing Resolution.
In the Q & A session after ATR’s webinar, one veteran of legislative campaigns said she has found contacts with members of Congress can be made more effective and get more attention if contacts to the members’ in-state offices are included. Most members web pages include contact info for local offices.
Click here for House member contact info.
Click here for Senate member contact info.
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