Public finance

An Education Program We Can All Support.

Progressives surely understand by now that Barack Obama has no intention of making the rhetorical case for progressivism a theme of his presidency. This is a continuing disappointment; if he spent as much time attacking conservatism as, say, Ronald Reagan did attacking liberalism, we might actually be able to change our national conversation on the role of government. And unfortunately, what ought to be the most powerful tool in that effort -- strong policy -- may have only limited effect.

Annotating the Issue: Paul Ryan's Budget Plan.

ryan_debt_analysis.jpgRepublican Rep. Paul Ryan was in the news earlier this year after releasing a budget designed to eliminate the deficit and federal debt. Many argued that, though it contained radical changes in Social Security and Medicare as well as draconian budget cuts, it also represented a good-faith effort to make hard choices about the budget.

Balancing Oklahoma's Budget.

In Oklahoma, where the budget gap equals 15 percent of the state budget, Democratic lawmakers are blocking a budget agreement because it doesn't pay for a nutrition program for senior citizens. Republicans warn that the stalemate will result in state trooper and prison guard furloughs, but Democrats say Republicans can find another way to free up the cash.

Jim Bunning Gives Us Another Reason To Reform Senate Procedure.

Oh, Sen. Jim Bunning. He's been objecting to a bill to extend unemployment benefits because it would add to the deficit. (Never mind his opposition to tax increases and his many votes for deficit spending -- apparently tax cuts are A-OK when they add to the deficit, but the jobless can go suck an egg.) This bill passed the House Thursday by a voice vote. that is, without any objection from either party.

Obamanomics One Year Out.

Obamanomics suffers from a misunderstanding of what the president is trying to achieve and what he’s up against. Into the breach come Republicans, tea partiers, nay-sayers, deficit vultures, and Raging-Dog Democrats, all viewing Obamanomics as more taxes and more spending. That’s nonsense. To see the big picture, keep your eye on three big things.

1. Government spending needed to offset the continued reluctance of consumers and businesses to spend. You don’t have to be an orthodox Keynesian to understand that as long as the private sector is deleveraging, the public sector has to borrow and spend in order to keep the economy moving forward.

Scott Brown Starts Off Strong By Badmouthing Federal Employees.

privatepublic.pngNewly elected Massachusetts Sen. Scott Brown was on the teevees over the weekend and got ridiculous, then smacked down by large federal employees union:

What About the Deficit?

budgetdeficit.PNGThe number the Obama team wants you to hear is $1.25 trillion, as in, there is $1.25 trillion worth of deficit reduction in this budget over the next 10 years. It comes largely from letting the upper-income Bush tax cuts expire ($700 billion in savings), the terribly framed non-security discretionary spending freeze ($250 billion in savings), the new bank tax ($90 billion), and various other tax and spending adjustments.

The Hidden Stimulus In the Budget.

The analysts and officials I've spoken to today generally see three goals in the new budget for fiscal year 2011: Deal with the short-term problems of the recession, lower medium- and long-term deficits, and make good policy with a focus on "middle-class security." I'm going to post about all of these things, but let's start with how the budget addresses the recession.

The Tepid Freeze.

So the Department of Education is going to get a 6.2 percent increase in funding in the next budget, even though it is within the budget slice that is to be "frozen." As I explained yesterday, though, the budget "freeze" is simply a rhetorical gambit. The administration intends to go about its usual budget processes while attempting to keep the overall level of domestic discretionary spending at the same level. And it's not even likely to happen, since many members of Congress are skeptical of the White House's ideas.

Obama Budget Freeze Concedes the Deficit Debate.

In several conversations yesterday, White House officials told reporters that the president will announce a three-year freeze on non-defense discretionary spending (the freeze also exempts Veterans' Affairs and Homeland Security). Cue heads exploding on the left, which seems to be what the White House wants.

Stimulus? What Stimulus?

There’s yet another angle on the “Is the public too stupid to realize all that the stimulus has done” debate that Adam weighed into earlier this afternoon. Adam and Matt Yglesias took Joe Klein for task for condescending to the the public when it’s the responsibility of the media and other elites to help them understand what the government is doing.

Cadillac Tax Gets All Sorted Out.

So the White House and congressional leaders got together with union representatives, and came to an agreement on the so-called "Cadillac tax" provision of health reform, the one labor was opposing because it could tax their benefits. Some of the details, as Jonathan Cohn explains, are as follows:

-- Exempting vision and dental benefits from the calculations of plan value

-- Raising the threshold at which the tax kicks in, from $23,000 a year for a family plan to $24,000 a year. (The threshold for individuals goes from $8,500 to $8,900.)

-- Making additional adjustments to the formula based on age and gender

Don't Excise the Excise Tax, Just Fix It.

Ever since I wrote this piece on the excise tax in October .... very little has changed. Today, President Obama meets with union leaders to hear their objections to the tax, but they don't expect to come away with much.

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