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Allan Blinder gives a spirited account of what he sees in the Paul Ryan Republican deficit reduction plan. He says that with the voucher plan retirees would fall further and further behind the increasing cost of health insurance. With no explicit cost containment proposals it assumes that some kind of miracle will occur for costs to be kept in check- especially as Republicans want to repeal the cost containment proposals in the President's healthcare plan. He asks whether someone is saying, that we have to destroy Medicare so it can be saved. Ryan woulld also turn Medicaid into a block grant, then underfund it and let the states figure it out when they are in a budget squeeze. Blinder points to the estimates of the Center on Budget and Policy Priorities, that show about two-thirds of Ryan's budget cuts would come from programs that serve low and moderate income Americans. And to make matters worse the steep spending cuts go to finance tax cuts that largely benefit the wealthy. He calls this Robin Hood operating in reverse, and coming on top of 30 plus years of rising inequality. David Stockman makes a similiar point on the editorial pages of the New York Times, April 24, 2011; also adding the point that the middle class will have to pay higher taxes for the deficit to be addressed, something President Obama's plan fails to do. Blinder says that the Bowles-Simpson and Rivlin -Domenici proposals attack the deficit reduction problem in a better way, that asks something from all classes and interests. ...

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The Congressional Budget Conference committee meetings offer an alternative to the distrust and failure in negotiations between the White House and the House Republicans. Efforts are underway to make the process of negotiating an agreement work in this Budget Committee chaired by Paul Ryan and Pat Murray. Republicans push for spending cuts as the debt ceiling reaches $16.7 trillion in 2013 compared to $4.9 trillion in 1993, an increase that is triple the increase in the prior 5 decades. Democrats say the cuts would hurt economic growth and the unemployed.

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The Ryan-Murray budget deal of Dec. 2013 is seen as a ceasefire between Republicans and Democrats with modest changes to the sequester defense and domestic spending cuts and increase in retirement payments by federal employees.

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The fiscal 2016 U.S. budget of president Obama proposes government spending at 7% or $74 billion above the caps set in a bipartisan deficit reduction deal reached in 2011. It proposes $561 billion in defense spending with an increase of $38 billion, and $530 billion in non defense spending with an increase of $37 billion. Across the board cuts known as the sequester were set in 2013 following a 2011 bipartisan budget deal plan to take $2 trillion out of the federal budget deficit over 10 years. Spending caps were set at the time and a supercommitte was setup to look for ways to trim $1.2 trillion from the federal budget. With the failure of the supercommittee the sequester went into effect until Sen. Murray (Democrat) and Sen Paul Ryan (Republican ) agreed to ease cuts through fiscal year 2015 ending in September. The Democratic president's effort is to remove the caps in 2016 to invest more in infrastructure, medical research, other strategic priorities and defense.

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The name on the bill says it all -The Bipartisan Debt Agreement 2023. As Budget Director Shalanda Young says if you look at it as Democratic or Republican, you have lost already. It is truly bipartisan with the support of the Minority Leader of the Senate, Republican Mitch McConnell, and the Speaker, House Majority leader Kevin McCarthy. Strange as it may sound it sets the stage for other wins as the President in the end stakes his legislative achievements, a strong economy, and a renewing America in the world, for a national bipartisan win for the presidency against his challenger Mr. Trump's purportedly national yet deeply personal agenda. It shows traces of the fights in the past of TR, of FDR, of Lincoln, and Washington, alternately Republican and Democratic but truly American in imagination and foresight.

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AP/NORC poll March 2023 shows 7 out of 10 adults in the US feel that the US is spending too much on development assistance when the budget for USAID is $40 billion. In general Republican administrations prefer foreign aid to be adminstered by the State Department not a separate agency. USAID was setup during the Cold War with the Soviet Union by president John F. Kennedy in 1961. Today it adminsters programs for HIV/Aids and for pandemics, health programs that can be done through the State Department. Attitudes have shifted following the pandemic with 9 out of 10 Republicans opposed to foreign aid through USAID. Some of the criticism is that it funds bureaucrats favorite programs. The actual impact is now uncertain in the developing of an economy. For example Sri Lanka benefits more from aid and development assistance from neighbor India than from programs of USAID as it tackles the current economic crisis following the pandemic. India pulling together the aid through IMF for Sri Lanka, and the investment in energy from India is way more important than the small USAID programs.  ...

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The U.S. House of Representatives voted 332 to 94 to approve a budget deal for 2 years negotiated by Rep. Paul Ryan (Republican) and Senator Pat Murray (Democrat). This ends a chapter of 3 years of crisis prone budgeting negotiations and a brief government shutdown from failure to negotiate a deal between the two political parties. Ryan, the vice presidential candidate in the 2012 elections has credibility with all parts of the Republican Party which helped get the deal passed overwhelmingly. On the floor of the House Ryan said about the deal- "This is good government, it's also divided government. And under divided government, we need to take steps in the right direction." Ryan was able to win 169 Republican votes, with 62 against. House Speaker Boehner (Republican) was critical of Tea Party supporters and groups such as Heritage Action, Club for Growth, FreedomWorks and Senate Conservatives Fund opposing the Ryan deal, because he said these groups were pushing the Republican party into places where it did not want to be through "misleading" information and had "lost credibility."...

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Estimates by the Congresssional Budget Office in January 2011 show the federal budget deficit in the US at nearly $1.5 trillion in 2011. The deficit would equal 9.8% of the US gross domestic product. In 2009 the budget deficit was $1.4 trillion or 10% of GDP. The CBO estimates show the debt held by the public increasing from 40% of GDP at the end of fiscal year 2008 to about 70% at the end of fiscal year 2011. Republican senators Orrin Hatch of Utah and John Cornyn of Texas called for a constitutional balanced budget amendment in an op-ed published in Politico.

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The U.S. House of Representatives votes to repeal and replace the Affordable care Act 217-213. Moderates were won over by an addition of $8 billion  to add coverage for a popular feature of the ACA that covered people for pre-existing conditions.  The bill that passed gives credits of $2000 to $4000 a year, depending mostly on age, upto $14,000 for a family. Credits are reduced for individuals making over $75,000 a year or families making over $150,000. There is no mandated insurance coverage. This trims the federal budget deficit, yet also is expected to keep 24 million more Americans without health coverage after 10 years. The bill now goes to the Senate where moderate Republicans are worried that this may increase premiums for older people, one of the drawbacks of the earlier version of the House Republican bill.

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The president says of the remarks by the former president about European countries that do not meet defense budget needs that Russia could then do what the hell it wants, that it was un-American and strange. Biden said- "History is watching. History is watching. History is watching. Failure to support Ukraine at this critical moment will never be forgotten." He also pointed out that most of the $60 billion in military aid will be spent in the United States, it will create American jobs, it will renew the defense infrastructure of the US that is needed. Senator Tillis, Republican of North Carolina also said this on the floor of the Senate in the bipartisan Senate. effort. The House of Representatives led by a small faction in the Senate has changed Speakers 3 times, and the new Speaker Mike Johnson from Louisiana lacks extensive experience and is in this role for a few months. He is now faced with deciding how to move forward even with president's call to have a vote immediately on the biparitsan approval in the Senate for $91 billion in aid to Ukraine, Israel, Taiwan that passed 70-29 with 22 Republicans voting for. ...

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Brooks is critical of Republican intransigence over reducing tax expenditures in the negotiations with the Obama administration in early July 2011.The Bowles-Simpson commission on the U.S. budget deficit specifically targeted a number of tax expenditures for savings to reduce the budget deficit. This resistance comes from a ideological fervour for no tax increases that does not grapple with the realities of spending cuts and the need for an approach that looks for savings wherever they can be found. That approach also leaves room for maintaining spending and not making deep cuts where such spending adds to future growth prospects for the U.S.

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The leaders of Republicans and Democrats, Senate Majority Leader Mitch McConnell, Speaker Boehner, Minority Leader Nancy Pelosi, and Minority leader Harry Reid, reached a budget compromise with the White House in October 2015 after long closed door negotiations, following years of deadlock in previous years. The compromise lifts sequester spending caps agreed to previously in a previous settlement of differences, and lifts the budget ceiling till March 2017. Speaker Boehner said it was time to "clean out the barn," as he did this over the opposition of Senators Rand Paul and Ted Cruz from the right wing of his party who opposed his efforts to compromise with Democrats. On October 28, 2015, the House of Representatives passed the two year budget agreement 266-167, and the following day Speaker Boehner passed on the Speaker's position to Rep. Paul Ryan of Wisconsin. On Oct. 29, 2015, the Senate voted 64-35 to pass the budget compromise agreement. The agreement increases discretionary spending by $80 billion over 2 years, giving half to defense spending with the increase in military threats overseas, and the other half to domestic spending programs. The domestic spending goes to limit premium increases for some Medicare Part B beneficiaries, and a prevents a 20% across the board cut to Social Security Disability Insurance benefits, set for 2016. This removes the uncertainty posed by threats of a showdown on the budget ceiling and threat of defunding Planned Parenthood posed by right wing Republicans in Congress, which were bad for the economy at a time when the U.S. and Europe faces increasing threats overseas. Without a budget agreement the U.S. Treasury Department would have seen its borrrowing authority expire on Nov. 3, 2015....

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This Wall Street Journal editorial says the Balanced Budget Amendment (BBA) currently being put through the House is unlikely to pass especially with a supermajority tax limitation. It raises questions about the advantages of BBA considering that the 1981 Reagan tax cuts may not have survived the BBA, a period when the U.S. experienced robust growth for 7 years. Unintended consequences could put defense spending at risk such as the Reagan spending on defense that helped end the Cold War, which may not have survived the BBA. The editorial calls instead for a repeal of the Nixon administration's 1974 Congressional Budget and Impoundment Control Act, a law which tilted control of spending in the favor of Congress after Nixon's impoundment battles with Congress over spending. This would mean getting rid of budgeting that uses baselines and increases the budget from one year to the next automatically, restoring the President's impoundment powers, and requiring a two thirds majority for tax increases. The editorial supports the House Republican majority's plan to cut spending in fiscal 2012 by $111 billion and cap spending as a share of GDP in future years....

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The major provisions of the Republican House healthcare bill that passed by a vote of 217-213 are- 1. To help people buy insurance coverage the bill offers $2000 to $4000 a year, upto $14,000 a year in credits based mainly on age, reducing them for families making $150,000, individuals making $75,000. 2.  Under the Affordable Care Act insurers cannot charge older Americans more than 3 times for same coverage they offer to younger people, the new bill makes this 5 times. This would increase premiums for older Americans and reduce it for younger Americans. This is the most controversial part of the bill. Older Americans supported the Republican party in the presidential election. 3. The new bill ends Medicaid as an open ended entitlement and places this on a budget with cuts of $880 billion over 10 years. 4. To mollify conservative Republicans a provision allows state to opt out some provisions of the ACA that requires minimum benefits such as maternity care and emergency services. It retains coverage for pre-existing conditions to mollify moderate Republicans. The bill provides states with $138 billion over 10 years to subsidize premiums, provide coverage for pre-existing conditions, mental healthcare and drug addiction. 5. The bill removes the taxes imposed under the Affordable Care Act (ACA) on high income people of about $300 billion over 10 years by repealing a payroll tax increase and tax on investment income. This bill and the ACA offer 2 competing visions on healthcare, both bills passed only by a margin of 4-5 votes in the House. The ACA overlooked the impact on premiums causing discontent among middle income Americans. The new bill lets premiums rise for older Americans in order to keep premiums down for other Americans. This shows the many tradeoffs involved and choices being made, and the lack of a consensus on the issue of healthcare in the U.S., becoming a highly politicized issue instead of the way it is treated in western Europe.     ...

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Rep. Paul Ryan got his start in politics in 1983 when he was hired to work for a think tank Empower America. This think tank was formed by Weber, Kirkpatrick, Bennett and Kemp, to preserve Reagan era ideas of focussing on economic growth generated by private investment. This was followed by working as an aide to Senator Brownback of Kansas and Rep. Jack Kemp till his election to Congress in 1996. Kemp was the big idea guy and it was Paul Ryan who delved into the budget details at the time to support Kemp's ideas. Kemp was Republican vice presidential candidate, the same position that Ryan is in today. Ryan represented the area around Janesville, Wisconsin, in the U.S. Congress. He graduated from the University of Miami, Ohio.

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To get a right grasp of the situation as a whole from the bigger picture than the headlines, is to know that even in the current chaotic immigration handling of both parties, the US comes out a winner in long term by 2034. That it gives for the younger generation a better future. Congress's Budget Office economic report shows GDP higher by 2% from the higher immigration of 5.2 million added to the US workforce by 2034. US productivity higher by 0.2% and residential investment including construction up by a whopping 10%. The younger profile of immigrants will help the US compete with India's younger population, and as China ages to have what it and Europe is aspiring to have- a younger population. The best way to look at the immigration issue is for the short term- manage it better by organized method of immigration without chaotic border crossings by allowing potential immigrants to apply from their home country, a step taken by the Biden administration. What it or any Republican administration could not control is the immigration that happens from countries the US is at war with or in conflict with. It is important to recognize that this is what happened with Venezuela the largest component of the immigration border crossings in 2023. It was made worse by actions of both parties Democrats and Republicans and made worse in 2017 by more severe sanctions on Venezuela under the Trump administration.  Also part of the problem is Venezuelan mismanagement- providing oil at pennies a gallon, hurting imports and spiralling inflation that only worsened under US sanctions after 2017. Long term- To reflect that US sanctions on top of mismanagement by Venezuela is a warning for all developing countries in Latin America, Africa, Asia and for the US. It meant 7 million refugees a staggering quarter of Venezuela's population fleeing the country, that burdened neighbors Columbia, Ecuador, Peru, Chile. By 2022-2023 many of these refugees were making their way up the Darien Gap to the US. Yet within this tragic situation for Venezuelan people how could the US best respond is to close the border as president Biden has proposed with McConnell and the Lankford effort in the Senate, which was blocked by the House under Mike Johnson. This gives time to assess the situation, correct US laws on asylum and parole that allowed this chaotic way to proceed under actions of both parties.And not let this destabilize the US by understanding that while Venezuela has suffered for its role in the crisis the US will ultimately have come out a winner, as pointed out by the Congressional Budget Office projections. CBO projections of this immigration impact by 2034 of increasing the workforce population by 5.2 million will provide higher GDP, more tax revenues, and higher productivity than without this group of Venezuelan and other immigrants in this special situation of 2022-2023. For the Immigration projections discussion given by Phillip Swagel, Director of the Congressional Budget Office see page 51 of the Budget and Economic Outlook 2024 to 2034. For this search for term Congressional Budget Office or CBO which brings up the report on PDF and turn to page 51 or just click on Original Article on Lyrarc.   ...

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Mike Johnson, the new Speaker of the House, is a Christian conservative from Louisiana who as a lawyer believes in incremental progress through legal process to make gains for Christian values. After graduating from law school at Louisiana State University in 1998 Johnson he joined the family firm of Thomas Benton and took up cases related to abortion clinics. He also volunteered with The Family Forum on Christian issues. This gives him a sense of credibility among Republican colleagues that other Speakers lacked, and the Freedom Caucus so called hard right conservatives have not opposed his budget passing efforts.

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The 2018 U.S. Budget deal that passed the U.S. Senate on February 8 meets nearly all of the priorities set by Democrats in Congress for increases in spending, says Representative John Yarmuth of Kentucky, the senior Democrat in the House Budget Committee. Part of the deal are increases in funding for domestic programs favored by Democrats. As a result Democrats are having difficulty taking a stand on the budget and forcing a shutdown of government on the basis of a single issue, that of children who were brought unlawfully into the country by their parents but offered protection under president Obama's Dreamers legislation called DACA.  Reflecting this ambivalent position Representative Pelosi of San Francisco, made a spirited defense of the Dreamer legislation with a 8 hour nonstop speech, plans to vote against the budget deal, yet says the compromise was fair and helped achieve Democrats priorities on other issues that affect the whole country. Democrats from the most liberal section of the party plan to vote their conscience on the issue, and Pelosi called merely for a commitment from Speaker Ryan to have a vote on legislation that would address the issue of the Dreamers, children of unlawful immigrants. Speaker Ryan offered no commitment on Dreamers except to say any immigration legislation would have to be something president a Trump supports. In the previous vote that led to a government shutdown a settlement was reached between the two parties in a matter of days when Majority Leader McConnell of the Republicans committed to a debate on immigration. On the Republican side the Freedom Caucus members oppose lifting spending caps to address priorities in spending supported by Democrats and to some extent by president Trump, because it worsens the deficit. The budget deal lifts spending caps for this fiscal year for domestic and military spending by about $300 billion. Senator Rand Paul of Kentucky emphasized this issue with his opposition to the budget deal and delayed the deal till the final vote in the Senate 71 in favor and 28 against.  ...

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The $1.2 trillion spending bill to cover the budget for 2024 for defense, health and human services, education and other parts of the US government passed the Senate 74-24 with Republicans joining Democrats to pass the bill. It came in the wee hours of the morning just after the midnight deadline for funding the US government. Disagreements on funding programs between the 2 parties led to this situation of delay till the last minute as each side sought to improve its position. 

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California's governor Jerry Brown has put forward his budget plan for fiscal 2013 showing a budget surplus of $851 million. Brown was able to get Proposition 30 passed in the November 2008 elections. Higher income earners pay more in taxes for several years and the sales tax is increased. An improved economy with unemployment down from 11.3% in 2011 to 9.8% in Nov. 2012 is helping with higher tax revenues. General fund revenues are expected to increase 3.3% to $98.5 billion in the 2013 fiscal year from $95.4 billion the prior year. Brown has accomplished a remarkable feat of balancing the budget for 2013 and still continuing to invest in education and healthcare. Spending will increase 5% to $97.7 billion in fiscal 2013 from $93 billion in fiscal 2012 with higher spending on education and health care and lower spending in other areas. Brown's path to achieving this was eased after Democrats won control of both houses in the the state legislature. Says Brown: "Right now, for the next 4 years, we'll be talking about a balanced budget, we're talking about living within our means... This is new." Even Republicans praise this effort from a veteran of California politics- his father was governor in the Kennedy years, and he was governor in the 1980's....

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Krauthammer says President Obama has failed to come out openly in support of the Bowles-Simpson commission's recommendations on deficit reduction. The recommendations were made in December 2011. The President's February 2011 budget did not take up these recommendations. He gets a sense that there is too much electioneering in the Obama posture on deficit reduction- being in the best position for the 2012 presidential election rather than a sincere effort. He suggests the Republicans pursue a short term debt ceiling hike of $500 billion containing $500 billion in budget cuts by passing this in the House. And couple this with a call to follow the Simpson-Bowles recommendations which, in one option, cut $1.1 trillion of deductions, credits and loopholes while lowering tax rates across the board to a top rate of 23%. This would give enough time to come up with a thoughtful and open effort with public scrutiny, and is preferable to the current closed door negotiations without the deliberations necessary for decisions of such far reaching consequences. Failing this there is the McConnell Plan B. Boles- Simpson focussed on tax expenditures as a key part of their plan. Martin Feldstein and other experts also point to limiting or eliminating "tax expenditures" (the deductions and loopholes that reduce revenues) as a key part of the solution to the U.S. deficit problem....

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This WSJ report shows how the debt ceiling negotiation were conducted and the process that made it possible to reach an agreement since the State of the Union address by president Biden on February 7, 2023. It started with Biden getting unanimity right on the floor of Congress during his speech about protecting Medicare and Social Security. The Republican strategy was to pass the legislation on spending that did not specify where cuts were to be made yet used 2022 spending levels with a 1% increase. The deal was to be for three years and passed the spending bill with an increase inthe debt ceiling. Till that time the Democrats decided to not enter negotiations.  Biden and McCarthy then had to choose who would represent their side in the long negotiation process that lay ahead till June 5. Progressive Democrats called for invoking the 14th Amendment that allows the government to continue functioning and pay its bills. Biden chose not to take that route. Respect for the other side, a prepared script are an important point in negotiations. To get results something even more important is essential flexibility and a plan, Plan B. Trust began to develop between McCarthy and Biden. Biden and McCarthy did not any time engage in acrimonious description of the other side. At one point when Biden was in Hiroshima for the G7 meetings Ricchetti on the Biden side and Graves on the Republican side began to feel the frustration. Biden decided to fly home early from Hiroshima. He was constantly in touch with his negotiators Steve Ricchetti, a trusted aide, and a cabinet official the Budget Director Shalanda Young. Graves a long time trusted adviser of McCarthy headed the negotiations for McCarthy.  Shalanda Young and Garrett Graves are both from Louisiana and Graves says he used to work out with Young's dad in the same area. This had a positive effect. It also reduced the tensions in the negotiations so that it could be said this was the calmest negotiation from either side that has been seen in the US  for a long time and bodes well for America's future and for its people, far beyond any concessions made by either party.  Biden made clear at the outset what he could accept without leaving it hidden- he would agree to some work requirements, he would not agree to work requirements for Medicaid. Others in the Democratic party conveyed how distraught they were with efforts to impose stringent requirements for federal food aid during a cost of living crisis when the Republican positions ruled out any new taxes on the wealthiest Americans. In the end Republicans agreed to keep spending limits for 2023 for two more years into 2025 when they would be increased by 1%. Democrats offered to cut (Income Tax) Internal Revenue Service (IRS) spending to increase IRS staffing from $80 billion to $70 billion. Biden said "nobody got everything they wanted." It would have to be passed in Congress with the support of moderate Democrats and moderate Republicans, with members holding extreme positions among Republicans and Democrats opposing. The two parties coming together after a long time to meet the real challenges ahead for the American people. ...

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In this WSJ post Musk is shown as having regrets on his posts in social media X. It only underscores the volatile nature of the activities of the Tesla founder which do a disservice to the genuine work of cutting costs- something that we have shown was taken up by Harry Truman during the spending in World War II with much grace and by walking in the shipyards and factories of the US without the constant chatter of social media posts. This is what made a mark for Truman in the US Congress leading to the vice presidency, and then in 1944 the presidency, and again in 1952 barnstorming the country by railcar to win over Wendell Wilkie in 1948.  President Jimmy Carter started Planning Programming Budgeting systems which is a truly effective way to budget by simply asking that all budget items be prepared from scratch from zero each year so that spending from past years does not simply getting carried over.  As Susie Wiles and other Republicans around DJT know it is important to keep the long term in mind and act responsibly, speak responsibly to the American people, in the manner Lincoln would have done today. ...

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The 2018 budget deal brings Democrats and Republicans together by increasing defense and domestic spending both by about 10%. Spending caps are to be lifted by $500 billion over 2 years with 60% of this going to defense spending increases to bolster America's defense capabilities. Defense spending is a top priority for Republicans.  For Democrats this means staving off some cuts in Medicaid and Medicare, more college affordability funding, and 4 year extension of the Children's Health Insurance program that had expired, funding community health centers for another 2 years.

This also shows that both sides can reach agreement even with divisive rhetoric and serious differences over policies.