Senate punts on rising debt

By Mimikatz

The Ides of March are here, and so is the need to vote on the debt ceiling, the limit on how much public debt the United States can run.  Now over $8.2 trillion, the cumulative public debt is also over the increase in the debt ceiling voted just after the November 2004  elections.

Last night the Senate voted on an amendment by Byron Dorgan (D-ND) that would have reinstated the rule that not only budget increases, but tax cuts as well would have to be offset by spending cuts.  The vote was 50-50, so the amendment failed.  The vote was a party line vote, except for five Republicans who voted with the united Democrats (plus Jeffords, (I-VT).  They were Collins and Snowe of Maine, Chafee (RI), McCain (AZ) and Voinovich (OH). The Democrats said the amendment was necessary to reduce the burgeoning national debt.  "For those who say they want to be fiscally responsible, here's your chance," said Senator Dorgan. But it was not to be.

But Republicans said the push to add the rules to the budget was a back-door effort to make it harder to extend President Bush's tax cuts.

"The practical effect of this is to raise taxes," said Senator Judd Gregg, Republican of New Hampshire and chairman of the Budget Committee.

Well, duh, Senator Gregg--if the Congress has to face the consequences of tax cuts, they might be harder to ram through.

The Senate vote on raising the debt ceiling will come tomorrow, with the GOP Senate leadership hoping no one will notice if they do the dirty deed on their way out the door for the Saint Patrick's Day recess. 

And the House?  Well, it seems that last year the House put a debt limit increase of $781 billion in the budget bill.  According to Fox News, the House may not have to take a separate vote. 

Under an obscure House rule, that chamber gets to avoid having to vote on the debt limit if Congress successfully adopts a budget blueprint. So, after passing the budget last April, the House sent the Senate a $781 billion debt limit bill as if it had passed it separately.

That bill is the most likely vehicle for the Senate debate, but an alternative measure would be a filibuster-proof bill permitted under fast-track budget rules that limit debate and opportunities to offer amendments. But to go this route would require the House to vote on the bill before it is sent to Bush for his signature, a prospect House GOP leaders are eager to avoid.

The House is currently debating the debt-funded emergency $91 billion spending bill for Iraq and Katrina, two of the Bush Administrations signal failures.

Despite their rhetoric, fiscal responsiblity is not much in view among the governing party, the party that has added $2.2 billion to the debt during Bush's 5 plus years, or $28,000 for every man, woman and child in the country.  Instead, it is business as usual from those borrow-and-spend Republicans.

Comments

[John Casper]

Terrific post, economical high altitude and low altitude analysis, thanks.

[Newsie8200]

Kudos to Sen. Dorgan. He's consistently been fighting on debt issues.

[emptywheel]

I wonder whether Fristie was losing this amedment and armtwisted someone to stay disciplined. And I wonder what it took to bribe them.

One worrying thing. I think Fristie is getting smarter at his job. We had a gift when Fristie was picked, but he seems to be catching onto this counting thing. Pity.

[Mimikatz]

'Wheel: Tom Coburn of Oklahoma was the potential renegade whose arm got twisted hard. He had supported pay-go rules before, and is somewhat independent minded. He came over, leaving the 3 "moderates" plus Voino and McCain, who has always railed about spending.

[JohnLopresti]

Sen Kerry says Republicans have amended the budget, omnibus fashion, to reinstate Alaska National Wildlife Refuge drilling; [in an emailed message today "Five Better Ideas than Drilling in the Arctic Refuge"].
On February 7 Sen Biden was interviewed for 45 minutes on WHYY-FM during which he described an egregiously frequent new strategy of the majority Republican contingent in the conference committee to add items which had not passed the chambers into bills, and report the gestalt whole out for the Fristian yea or nay vote, essentially robbing Democrats of as voice in conference committee and abrogating chamber rules requiring debate on the floor of the chamber; [transcript available at WHYY; Biden's transcripts webpage only offers television interview textfiles not radio transcripts].
Then again, we have a question by a 'moderate' website whether some laws are actually patched together by clerks after a vote and the chamber has no say over what the government printing office ships out and the president signs, though this apparently is an anomaly; nevertheless, a recently reported occurrence, last month.
Sounds like congress is getting just as unitary about its following its own internal regulations as the executive is with its signing memos, as in McCain amendment which the President says exists but shall be obeyed only if he feels like it, or if reporters turn it into a publicity debacle.
Needing to keep on topic with MK, here, I had the personal recollection of Gingrichians, it seems, first refurbishing the old Reagan line about balancing the budget, and jawboning Democrats to come to the White House and acquiesce that they would cut social program expenditures to finance whatever is new that congress decided to fund.
I guess I am too JKGalbraithian to subscribe to the live within our means approach. I say, fuel the econmic engines, folks; spend. Our best assets are our vision and our capacity to help people with their own bootstrapping ventures here and abroad.
In the 50s it was conservatives trying to tell postbellum US taxpayers to revert to some xenophobism that would justify obliterating foreign aid.
This post ain't goin to go onto a World Bank and OECD declamation, but it seems Bolton has nourished a taint of that old cancel-everything school.
Yet, it is strange to see Democrats trying to capture the frugality plank and blame Republicans for spendthriftishness; Dems need to get issue-specific, program targeted.

[Mimikatz]

It isn't the spending, it's the tax cuts. I'm ok with some deficit spending, but this has gotten so out of hand that it is impossible to spend out way out of this--the only way is to reflate the currency. Bush hasn't just spent on guns and butter like LBJ; it's guns, butter and tax cuts. A lethal combination. Only world-wide low interest rates, caused by the excess capital abroad (because of our deficit), has kept it afloat, but that won't continue. Interest rates are rising, the dollar is less attractive. There is more debt out theree than we can possibly roll over. See here.

[Rokko]

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