Free Republic

President Donald Trump's new budget confirms that without corrective action, trillion-dollar deficits will be with us for years and perhaps decades to come. Trump's budget plan has many smart and urgent spending reforms. But will Congress ignore them once again? Alas, probably, but the longer we wait, the shorter the debt bomb fuse. But step one in solving this crisis is to recognize the facts about it and to dispel the pervasive mythologies about what caused this ocean of systemic borrowing and how best to deal with it. Myth 1: Trump created these deficits. No, no, no. These were the...

President Trump and Senate Minority Leader Charles E. Schumer (D-N.Y.) have agreed to pursue a deal that would permanently remove the requirement that Congress repeatedly raise the debt ceiling, three people familiar with the decision said. Trump and Schumer discussed the idea Wednesday during an Oval Office meeting. The two, along with House Minority Leader Nancy Pelosi (D–Calif.), agreed to work together over the next several months to try to finalize a plan, which would need to be approved by Congress. One of the people familiar described it as a “gentlemen’s agreement.” Senate Democrats hope they will be able to...

President Donald Trump briskly overruled congressional Republicans and his own treasury secretary Wednesday to cut a deal with Democrats to keep the government operating and raise America's debt limit. The immediate goal was ensuring money for hurricane relief, but in the process the president brazenly rolled his own party's leaders. ...brushing aside the urgings of GOP leaders and Treasury Secretary Steven Mnuchin for a much longer extension to the debt limit. Republicans want that longer allowance to avoid having to take another vote on the politically toxic issue before the 2018 congressional elections. The session painted a vivid portrait of...

Soak this in: It's now possible that Trump's biggest legislative wins this year will be more spending and raising the debt cap — the exact opposite of what Tea Party Republicans came to D.C. to do. Trump "brazenly rolled his own party's leaders," as AP put it. Plus his own Treasury secretary, Steve Mnuchin — in front of leaders of both parties. Why it matters: Tax reform is now less likely, with trust ruptured between Trump and Republican Hill leaders. Democrats are more likely to flip the House in 2018: Republicans have less than ever to show their voters. A...