A Close-Run Thing

(A Close-Run Thing)

By the skin of its teeth, the size of its Majority, House Republicans passed their version of President Trump's "Big Beautiful Bill." Included are the extension of the 2017 tax cuts so that will not be an issue later. Four trillion has been added to the debt ceiling another two trillion in cuts are anticipated, The Bill is a reflection of Trump's priorities, a framework to be sent to the House Committees, in addition to tax writing, also Defense, Energy, and the Border. While all the heavy lifting remains, the first exertion has been accomplished.


It is not surprising that President Trump had to personally intervene with some Members to switch their vote to "Yea." Equally not surprising was every Democrat also voted "No." And, with this House vote, as action translates to the Senate, they will be forced in a sense to include the House frame-work , and the tax cuts. The Senate first track that had been proposed by Majority Leader Thune and Budget Chairman Graham will now have to follow the House lead.


The GOP win has certain ramifications for the Minority Party. The expectation had been that the Republican Bill would have failed as Party infighting persisted. At the Eleventh Hour Trump did have to intervene but a universal rejection by Democrats, There are other ramifications as well. If the House and Senate coalesce and a final package is approved and signed into Law, supply side theories will be put to the test and one will see if there is any truth in the Laffer Curve, that lower tax rates generate more revenue, and with the two trillion cuts in the current framework, the expected revenue generated from the Bill just approved.


But spending always out paces revenue, regardless of what record inlays might have been accumulated. With the serious attempt to reduce outlays outright and not simply retard the rate of growth, the monies could be such that the fiscal activity like the tax and fiduciary cuts could conceivably result in a balanced budget.


If that is not the Holy Grail. A budget in balance and kept that way will allow for the reduction of the National Debt. That expectation is not immediate, but the House framework is the first step. Two votes in the House were the difference between moving the process forward to get Trump's Big Beautiful Bill, and possible GOP extinction.

Comments

Post a Comment

Popular posts from this blog

TEQUILA !

(TEQUILA !) Happy Cinco de Mayo or May 5th. One can hope that a lot of you out there are awash in inebriation, seeking to mainline tequila shots or enjoying a nice margarita on the patio. Or, in other words, relax. Take a breath. De-compress. May 5th as it happens is the anniversary of Mexico's victory over French "occupation" of Mexico by Emperor Maximillian, brother to Austrian monarch Maria Theresa in what has been called the Battle of Puebla. The reason France was in Mexico in the first place was that Mexico, after the Mexican-American War and a more civil conflict called the Reform War, had bankrupted Mexico City. Mexican President at the time was Benito Juarez, who repudiated all foreign debt, of which France, Spain, and the United Kingdom were all major holders. A naval expedition was dispatched to Veracruz and France's Napoleon III thought it would be a good idea to establish a French "empire" in Mexico. But, on May 5th, 1862, in the aforementioned B...
Read more

Keeping The Faith ?

(Keeping The Faith ?) Happy Memorial Day ! This is the day when the nation pauses and recognizes the contributions of the men and women that strove, and often times perished in the defense of this country. How many campaigns and battles have been seen over the years with Americans in harms way. Theirs was not a pursuit of glory, necessarily but they are remembered as such. As an example, take the Joe Rosenthal photo of the "Iwo Jima Flag-raising," February 23rd, 1945. Most people know what that is and not a few have a copy on their wall. Three of those Marines survived Iwo Jima and went on a bond tour to promote that picture. The U.S. was able to fund the rest of the War off of that drive but the Marines in question did not fare well. Private Ira Hayes, the last casualty of the Volcano Island died of exposure some years later. There was one other Marine, Rene Gagnon, and who was originally believed to be Navy Corpman, John Bradley. Since then, the "place" in the Ros...
Read more

Siege Of The Alamo

(Siege Of The Alamo) Any visitor to Downtown San Antonio will recognize the City's most famous landmark, the Alamo. An old Spanish mission that means "Cottonwood" in English was the site where the likes of Jim Bowie, William Barrett Travis and Davy Crockett and about another 185 Texians defended the Mission and its compound for thirteen days against the Army of General Antonio Lopez de Santa Ana and his 5,000 troops. The garrison was finally reduced on March 6, 1836. However, the Texian defeat at the Alamo and another one at Goliad, bought time for General Sam Houston time to fall back and then face Santa Ana at San Jacinto. There, Houston's army surprised the Mexicans and yelling "Remember the Alamo, Remember Goliad !" all but wiped out the Mexican force. Santa Ana was captured and was forced to recognize the Republic of Texas. Which is now the State of Texas and, like 1836 Texas War of Independence, there is a new invasion from Mexico. Not the armed body o...
Read more