Posted on 01/05/2007 6:07:26 PM PST by xzins
House Approves Changes to Budget Rules By ANDREW TAYLOR (Associated Press Writer) From Associated Press
January 05, 2007 7:15 PM EST
WASHINGTON - Resurgent House Democrats voted Friday, their second day back in control, to block future tax cuts or benefit increases from being financed with dollars that swell the national deficit.
Republicans protested the change would imperil GOP-sponsored tax cuts that expire in four years. The new rule also could make it more difficult for the Democrats to fulfill campaign promises to cut student loan rates and extend tax cuts for the middle class.
The drive to restore the "pay-as-you-go" rule has long been a priority for moderate-to-conservative Democrats, whose House ranks swelled on Election Day. Adopted 280-152, the measure also requires legislation that contains pet projects and narrowly targeted tax breaks - "earmarks" to Washington insiders - to include the names of the lawmakers who requested them.
The idea is that openness will help prevent abuses like the earmark bribery scandal that forced former Rep. Randy "Duke" Cunningham, R-Calif., out of Congress and into prison. The new rules replace slightly weaker ones on earmarks approved last September by Republicans.
In the Senate, both parties held private strategy meetings. The chamber's first moves next week will largely mirror House steps to ban lawmakers from accepting gifts and free trips from lobbyists. The bipartisan Senate ethics and lobbying reform bill, the first legislation to reach floor debate under Democratic control, also requires disclosure of senators' earmarks.
Also Friday:
- House opponents of oil drilling in Alaska's Arctic National Wildlife Refuge introduced a bill to make an oft-challenged drilling ban permanent by designating. The bill would designate an oil-rich 1.2 million-acre strip along Alaska's north coast a permanently protected wilderness area.
- Senate Democrats said they are willing to consider tax cuts aimed for small businesses as part of a minimum wage increase. Democrats in the House plan a vote next Wednesday on a bill that would raise the federal wage floor from $5.15 to $7.25 an hour over two years but without any tax relief for small businesses to help them meet higher payroll costs. Senate Democrats said they will need several "yes" votes from Republicans to pass a bill. "We're not going to go butting our heads against the wall because, first of all, it doesn't feel good, and number two it doesn't accomplish anything," said Majority Leader Harry Reid, D-Nev.
Democrats have promised to eliminate earmarks in a catchall spending bill that will clear away budget work left over from last year - and say that the upcoming round of appropriations bills will contain far fewer home-state projects, criticized as wasteful "pork" by taxpayer advocates.
Earmarks such as the "bridge to nowhere," a much-mocked proposal to build a $223 million span in Alaska to link Ketchikan and lightly populated Gravina Island, have captured the attention of voters, and Republicans say they're one of the reasons the party fared so badly in November.
The pay-as-you-go rule - if strictly enforced - promises to have a far bigger impact on the deficit. It would make it difficult for Democrats to pass increases in federal benefit programs such as Medicare or the Medicaid health care program for the poor or disabled.
The rule requires that tax cuts have corresponding cuts in government spending or increases in taxes elsewhere to pay for them. Likewise, any increase in entitlement programs such as Medicare would have to have corresponding tax increases, or equal cuts in other government programs.
In the near term, the rule, also known as PAYGO, means the Democrats' bill to cut student loan rates will be less generous than they'd like. The rule would also threaten efforts to extend Bush's tax cuts, most of which expire at the end of 2010.
"This is putting the American taxpayer on a collision course with higher taxes," said Paul Ryan of Wisconsin, top Republican on the Budget Committee.
And it gives lawmakers such as Rep. Charles Rangel, D-N.Y., chairman of the tax-writing Ways and Means Committee, an enormous headache as he tries to stop the alternative minimum tax from hitting more and more middle-class taxpayers. Fixing the AMT so that it doesn't engulf an additional 20 million tax filers next year would require almost $50 billion in tax increases or spending savings.
"It's not good for me, but it's good for the American people," Rangel said.
"Today, we are cutting our national credit card," said Heath Shuler, D-N.C., during floor debate Friday. To underscore the point, Shuler cut a credit card in half at a news conference held by moderate-to-conservative "Blue Dog" Democrats.
Democratic budget hawks say that restoring the PAYGO rule is crucial to curbing the budget deficit. Various forms of the rule were in place from 1990-2002, however, and Congress often found ways around it.
The version adopted Friday can be waived. But Democrats say to try to do so would invite criticism - and a revolt by the conservative Blue Dogs so crucial to the Democratic majority.
Another rule change, adopted 430-0, would curb past abuses in which GOP leaders held votes open for hours and excluded Democratic lawmakers from House-Senate negotiations on the language of final bills sent to the White House for enactment.
Every tax cut will in the first year "swell" a deficit. It's their long term effect that brings in additional revenue and decreases deficits.
In short, the Dems have just voted against stimulating the economy through tax cuts.
Wait until they pass an increase in the minimum wage, with built in increases written into the law.
Look what your pal, Heath Shuler, just did.
Voted against tax cuts and got to make it look like he was against deficits.
I am Jack's complete lack of surprise.
Wait a sec, did he actually speak and cut a credit card at the same time ? Who knew he was so talented ?
Stupid Party had their chance for 12 years for permanent tax relief and blew it.
Their complaining is futile.
Sounds like it was more than just the Democrats...
I have held out hope that Shuler would prove to be the conservative he ran as. Such cheap theatrics are not encouraging.
Good point. The split is about 220-200 isn't it?
Perhaps these dweebs should have considered that before going on their mad spending spree.
They got the vote of 50 traitorous Main Street "Republicans" too.
It's the tax cuts that have caused the economy to expand. Is it possible after all this time that there are still Rockefeller Republicans who don't understand what Reagan was all about?
That takes away all those additional free things the democrat base was hoping to get in the next two years. Universal Health care would be the biggest spending program in American history.
If you read that closely, you'll see that it excludes "dollars through new tax increases."
If they sell a tax increase to go with Health Care, then they get Health Care.
Bush will veto that, though.
233-202.
Good! I hope that all those who voted for and/or supported the dems have their wallets pinched until they personally feel the democrat's hand in their pocket grabbing their wallet.
"Wait until they pass an increase in the minimum wage, with built in increases written into the law."
The way to squelch that is to add language to STRICTLY enforce the minimum wage - against illegal immigrants who will work below the minimum. Add a bounty for anyone turning in minimum wage cheaters, watch the Dems pucker on that one.
Unbelievable. We have energy just sitting in the ground and can't get it. The Dems really do want us to remain dependent on the guys wearing the bedsheets.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.