Granthshala Business host says reconciliation bill, as we know it, is dead
The so-called reconciliation bill, as we know it, from the House budget and Ways and Means committees—the Senate never made a tax bill—but no matter what, the reconciliation bill, as we know it, is dead.
It passed away last night with a resounding statement from Senator Joe Manchin. We’ll review it in a moment.
I just want to point out the cleverness of the Republican leader Mitch McConnell who moved the Senate GOP to vote in favor of an ongoing resolution with no debt limit changes.
Hence, there will be no government shutdown. Democrats are still on the hook for an expected increase in debt. Moments earlier, the House approved Senate Cr.
There could be an infrastructure House vote this evening. I’m saying probably because it’s not complete yet and if a vote takes place, the result is still up in the air.
Left progressives can boycott the bill. liberal Republican can support it. Frankly, at this point, no one knows, but the bigger issue is the $4 trillion-plus reconciliation budget, executed by Senator Manchin.
Now, there may be a new budget proposal, which will include Munchkin’s terms and also include Senator Cinema’s concerns about taxes and spending, but I think it needs months of renegotiation. It will be and never can be. Right now the version, if brought to the Senate, will fail 52-48.
The federal government may stick to a provisional budget for the next year. It’s not optimal, but it’s been done before.
Mr Manchin’s statement was very clear on several accounts. First, massive and unnecessary spending is “fiscal madness” and inflation will increase the tax that falls most on the middle class.
Second, he stresses that all Democratic social spending proposals should be strictly limited with means-tested for eligibility and include work requirements.
For weeks and weeks, we, on the show, have pointed to workplace shortages as a major problem in the Democratic budget—one that undermines the dignity of work, cutting across the very social fabric of America. and eliminates opportunities for those who become dependent on the federal welfare state.
Manchin is on it. He has reiterated the idea of a means-test several times, including in his statement last night and his press conference today.
Now, many people are pointing to a potential topline ManChain number of $1.5 trillion. We are reading a memo from Mr. Manchin Chuck Schumer Dated this last July.
That’s probably where $1.5 trillion comes from – although he’s told people privately that his limit is $1-1.5 trillion. Today, he lived with $1.5 trillion, but here’s the bullshit.
It is the content of budget policies that is more important than the top line and in that memo, Mr Manchin emphasizes testing of need-based means with targeted spending caps on existing programs and “no additional handouts or transfer payments.” ”
He also asks that no new legislative money be dispersed until all the COVID law money is spent. He also said the Federal Reserve should end quantitative easing and on energy, adding that the sole jurisdiction over any clean energy standards should be the Senate Energy and Natural Resources Committee, which he chairs.
He wants to spend on innovation, not elimination. He wanted fuel neutrality. He wanted carbon capture research to include coal and natural gas and argued that if tax credits for solar and wind are included and expanded, the fossil fuel tax credit should not be repealed.
So, when I say that reconciliation as we know it is dead, I am suggesting that Mr. Manchin’s terms on relocation programs, rights and fossil fuels are in line with the prevailing ideologies of the left-wing progressives that dominate today’s Democratic Party. would be incompatible.
Last night, we called it mutually assured destruction. this is happening. No, of course there will be more talks, negotiations, negotiations and what not, but I think it is going to take a long time. Mr. Manchin is about to get his strategic break and I am ready.
He’s being attacked as the Republican infiltrating the Democratic Party, but it’s been a long time since I remember that the Democratic Party had a lot of fiscal conservatives, especially from the South and Midwest. They were variously called “blue dogs”, “yellow dogs” whatever dogs.
I like dogs. I have a dog and I love those old blue dog Democrats, of which Mr. Manchin is one.
Years ago, my former boss Ronald Reagan, with the help of the Blue Dog Democrats, passed his agenda of tax cuts and defense building.
Senator Cinema has recently been described as a John McCain who will freely vote for his beliefs. She opposes hike in corporate tax – my kind of girl.
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Mr Manchin favors a 25% corporate tax increase and a 28% capital gains tax. Sorry about that, but we’ll talk about that later.
Right now, reconciliation is dead. I believe there is going to be a long pause and my face is happy. The country will benefit. Save America. Hit the bill