Kent Conrad, the retiring Chairman of the Senate Budget Committee, just announced that the markup for the FY 2013 budget will commence tomorrow. And instead of creating model legislation, he will simply take the recommendations proposed by the Chairmen of the Bowles-Simpson deficit commission, popularly known as the “catfood commission,” as the baseline.
Tomorrow I will begin a Budget Committee markup of a long-term budget for the nation. As my Chairman’s Mark, I will lay down the bipartisan Fiscal Commission plan, also known as the Bowles-Simpson plan. It is a plan which I believe represents the best blueprint from which to build a bipartisan deficit reduction agreement that can ultimately be adopted.
What I am proposing is not partisan. I am trying to break from the ‘business as usual’ practice that has gone on for too long. I am hoping that my Senate colleagues will stand with me to do what is right for the country. That’s really the only way we can get something done. That might not happen this week, but it will have to happen.
To be clear, we already have a budget in place for this year and next. The Budget Control Act passed last summer provided the spending limits and enforcement measures for the budget for 2012 and 2013. It is the law of the land. What we do not have is agreement on a long-term budget plan. That is what we must now work to achieve.
The Bowles-Simpson Chairmen’s recommendations (which were never adopted by the commission) came out before Republicans took over the House. In reaction to that event, future long-term budget plans moved ever further to the right, including the deficit reduction blueprint from President Obama. So this has led many to say that Bowles-Simpson recommendations stand to the left of what has been proposed in Washington, because they raise far more revenue.
Not so fast. The Chairmen’s final Bowles-Simpson report still relied on 67% of its solutions from spending cuts and 33% from revenue increases (and that’s really the most charitable reading of their final report. It would include cuts to Medicare and an increase in the retirement age. In addition, tax rates would be lowered, flattened and made more regressive than in the Clinton years. And on the area where everyone agrees is the only one you need to worry about relative to any long-term deficit, health care, they play a game. They basically write, “just limit spending growth to GDP +1% every year by… just do it.” It’s known as a magic asterisk. If budgeting were this easy, you could eliminate the entire deficit tomorrow by simply saying “eliminate the deficit.”
Conrad endorsed this proposal when it was first announced back in 2010, so this is no surprise. What is surprising is that the Senate Democrats are allowing Conrad to introduce Bowles-Simpson, with all of the above inside it, as the default markup baseline for the Budget Committee.
It’s clear that Conrad craves a bipartisan agreement on the budget. He acknowledges that Bowles-Simpson is “not perfect” but that it’s a “middleground, consensus solution to the country’s fiscal imbalance.” He will work off that plan and try to build support from both sides of the aisle.
Conrad has planned for a one-day markup tomorrow, and he doesn’t expect to finish work on the budget by then. Bowles-Simpson based what numbers it had on 2010 data; it’s two years later and many things about the budget have changed. “Those adjustments will have to be negotiated on a bipartisan basis, and those negotiations will take time,” Conrad says in his statement.
From the looks of the statement, Conrad doesn’t appear all that confident of a solution before the lame duck session. And he shouldn’t; the taxes alone are enough to keep Republicans off the plan. But putting Bowles-Simpson back into play before then in a formal manner allows that to become the off-the-shelf solution to avoid the fiscal cliff. In fact, Conrad doesn’t even seem primarily interested in introducing Bowles-Simpson as a budget. “It is important to remember that we already have a budget for this year and next. The Budget Control Act provided us with spending limits and enforcement measures for 2012 and 2013,” he writes. So Bowles-Simpson is just a placeholder, ready to strike in a moment of crisis.
UPDATE: I don’t doubt that the thinking Sahil Kapur describes here is part of the calculation. Republicans have been screaming about the Democrats in the Senate not passing a budget for 1,000 days, and about Obama not accepting the recommendations of the deficit commission (even though Bowles-Simpson were just the recommendations of the chairs; the commission made no recommendations). Now their bluff is being called. And when they reject Bowles-Simpson, they will be exposed. But ultimately, I don’t think this is the ultimate consequence of bringing Bowles-Simpson back. It’s to create an off-the-shelf solution to the fiscal cliff.




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I thought the House voted on, and rejected, the B-S budget plan.
So Bowles-Simpson has been presented as the leftist budget?
Let the triangulation begin! /s
Just so I’m understanding this, Conrad wants to compromise FROM Bowles-Simpson? I smell a lobbyist application.
Emergency austerity? Today’s “Democrats” are all bullshit. They might as well put on their teabags and move across the aisle.
He SMELLS the MONEY!!!
Hey Peg how goes it?? Still working?
THEY WILL SPEND WHAT THEY SAVE ON MORE WAR.
ROBBER BARONS
Shared sacrifice, bitchez!
Yep! I was even surprised today at how much of my savings has been restored. Still less than half what I had but looking better than I expected.
That’s right! Shared between the bottom 90 percent of earners! With so many people sacrificing, how can it be unfair?!?
You’re young enough to fully recover, no?
Wow. Conrad and Obama are really trying to alienate the base.
I sometimes think Obama doesn’t want to win re-election, but being the political coward that he is, he has to do it in a half assed, disingenuous way by running a crappy campaign and hoping he loses in November.
Just speculating.
I think it would be more accurate to say that my savings were tiny enough originally to recover. Not ancient but no longer “young” by anybody’s standards.
Another episode in the on-going saga “What Zero Wants He Keeps After Until He Gets It”.
Biggest sack of shit to ever occupy the Oval Office. And heretofore, I thought Nixon, Ford, and Shrub were un-toppable.
No, this way he forces the Republicans even further into Wingnuttia, thereby showing everybody just how insane they really are. It’s the eleventysixth dimension of the eleventyseven dimensional chess he’s playing.
/kos
What does that even mean? What cliff are we talking about? Surely you don’t believe we are going to run out of money, do you?
I want another one of those debt crisis thingeys. That should be good for lots of popcorn.
The Hill:
Oh, I think he wants it. And I think he’ll get it. the worst possible scenario will be if the Dems lose both the House and the Senate, then we can watch “who has the mandate?” reality show for the next 4 years.
but Obama has been a good boy for the elites, ignoring laws that would rein them in and not taking any chances in alienating them.
Us, not so much.
It really doesn’t matter if a law like Lily Ledbetter passes if it’s not enforced.
The thing I’m concerned about is that O will take off the velvet glove in his second term and pound us into the ground.
I often say that the republicans propose and the dems dispose. Drill, baby drill being a prime example.
Plus I think we may wind up in a very unexpected world war over the resources that are being exposed by the Arctic Ice melt. I think that may be a greater probability than even Iran.
The world is run by idiots
The Oligarchy is here to remind us that the middle class wasn’t exactly their idea.
Can you feel the feudalism?
The oligopoly plays both bases like fine-tuned instruments.
Well that’s it. We are running out of money. I knew it all along.
And I say….BULLSHIT
The top 1% of earners experienced 97% of the recovery. It wasn’t enough apparently.
Not really. That’s just what the 1% say.
I trust the budget committee works in a quiet room, the appropriate setting in which to decide who gets what, especially when rich people get more dough and the rest of us get hosed.
And the Democrats keep asking me for money. Why?
I’ll agree. He wouldn’t have run in 2008 had he any inkling the financial crashes would coincide with his victory and destroy any Hope for Change he might have had.
As long as we don’t run out of money before 12/21. After then, I don’t really give a shit. I’ve got other plans.
Just bend over a little — it won’t hurt much.
Your Grand Bargain is coming to set you free!
As it is, never reelect an incumbent. Never vote Democratic or Republican. This might lead to evolutionary change, pehaps, but likely not.
The only other route is revolution. (Yes, we all hate violence. But America was born in a bloody revolution, after all.)
After the past three plus years, I no longer believe any of that shit. Obama was a right of center politician from the very beginning. And he is obsessed with bi partisan agreement. He thinks we are running out of money and we need to damn well do something about it. er, except maybe raise taxes on the 1%.
But that is all that matters since they control the government. And our minds. Look over there, they have convinced all of Europe that austerity is the way to go – - fiscal consolidation is the buzz word I heard. After we get control of our finances, then things will grow again, according to, what’s his name, Hayek? We are just out of money for all the foolishness, you know?
The rapacity of the 1% is what you’d expect, no? They’re gearing up.
I am getting tired of genetically modified Catfood, broiled in Pink Slime.
The Shills from the Hill need correction, as always.
The Obama-era Tax Cuts For The Ultra Wealthy are scheduled to expire. The opinion makers inside the Beltway are beginning to worry about making Obama’s Tax Cuts For The Ultra Wealthy, permanent. I predict a new budget crisis. The Republicans will threaten to do something, and Obama will give in to them. Then he will declare that he protected something from the Teabaggers.
But the President will also declare that he had a dream. In that dream, Ronald Reagan told him. Give the Ultra Wealthy Everything they want. Therefore, the President will declare the Obama Tax Cuts For The Ultra Wealthy will be protected forever.
Great news.. Sorry for the delay in responding… Wife’s ignition lock broke… We had to get it towed to a locksmith… Le sigh..
If re-elected, Obama’s second term will be worse than his first…
imagine that…
so…
who are you going to vote for?
ABO- Anyone But Obama.
Vote third party progressive.
De-elect the president.
ABO – Anyone for Obama.
Obama the LOTE is a WOTE – Worser-of-Two-Evils.
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