September 10, 2010

Posts on congress

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Sunday, September 5, 2010 - 9:54 PM

The Obama Administration is now considering a new set of tax cuts, primarily aimed at businesses, to further stimulate the economy.  It's reported that a permanent extension of the research and experimentation tax credit is one of these new proposals.  This is just the latest sign that the Administration is stuck in its own "deficit-financed tax cuts box."

My first complaint about these new ideas for tax cuts is that they're not really new at all; they're repeats of essentially permanent tax cuts that are repeatedly renewed.  They are "temporary" in name only. The administration seems to have adopted the mindset that many policymakers in Congress (and not exclusively those from one side of the aisle) have long had -- that the prescription for any kind of economic ailment should be more deficit-financed tax cuts.  But given the fiscal and economic outlook, and how the CBO explains they interact over the longer term (large deficits reducing economic growth), there's no justification for deficit financing permanent tax cuts. That's true even for tax cuts that may be good for longer-term growth (via the supply side of the economy) like the research tax credit.  Deficit-financing is only justified for policies that are designed to effectively and immediately boost...

Monday, August 2, 2010 - 10:58 AM

Below are several developments we have been following since the last edition of the Washington Budget Report (sign up here) was published.

FY 2011 APPROPRIATIONS:  Prior to departing for the August recess, the House passed the first two FY 2011 appropriations bills. The Military Construction-Veterans Affairs bill passed by a vote of 411-6 and the Transportation-HUD bill passed by a vote of 251-167. House subcommittees reported the...

Monday, July 26, 2010 - 10:14 AM

Below are several developments we have been following since the last edition of the Washington Budget Report (sign up here) was published.

COMMITTEES REPORT ADDITIONAL FY 2011 APPROPRIATIONS BILLS:  Last week the House Appropriations Committee continued to make progress on the FY 2011 bills.  The full committee reported the Military Construction-Veterans Affairs bill as well as the Transportation- Housing and Urban Development bill.  Both bills are expected...

Monday, July 19, 2010 - 10:34 AM

Below are several developments we have been following since the last edition of the Washington Budget Report (sign up here) was published. 

2011 APPROPRIATIONS PROCESS MOVES FORWARD AS TIME STANDS STILL FOR THE 2010 SUPPLEMENTAL: Last week the House Appropriations Committee continued to make progress on the FY 2011 bills. House subcommittees reported the Military Construction and Veterans Affairs; Energy and Water; and...

Monday, July 12, 2010 - 10:22 AM

As Congress returns from its July 4th recess, below are some of the budget stories we have been following since the last edition of the Washington Budget Report (sign up here) was published. 

  • Before the recess, the House of Representatives passed a deeming resolution by a vote of 215-210. (For background material on deeming resolutions, a Congressional Research Service report can be found here and a Concord Coalition blog entry can be found here).  The deeming resolution was included as part of the...