Politics

/

ArcaMax

Editorial: Republican budget gimmicks: Just say no

The Editors, Bloomberg Opinion on

Published in Op Eds

Even before taking office, the Republican Party’s new majority has become deeply split over the legislative path ahead. Some lawmakers want to prioritize defense, energy and immigration; others want to focus on taxes first; still others want everything, all at once, preferably while humiliating their opponents. A more modest agenda would better suit their goals.

Soon-to-be Senate Majority Leader John Thune envisions at least two major bills, starting with defense-energy-immigration, then moving on to extending the expiring elements of the Tax Cuts and Jobs Act. He plans to pass both using a process called reconciliation, which (to simplify a bit) allows budget-related bills, under certain conditions, to pass the Senate with only a simple majority. Therein lies the trouble.

Reconciliation, established by the Congressional Budget Act of 1974, was intended to discourage deficit spending by expediting measures focused on fiscal control. In recent years, though, both parties have wielded the process to pass highly consequential — and often budget-busting — legislation while eluding the 60-vote threshold normally imposed by the Senate’s filibuster. Among other partisan splurges, reconciliation eased the passage of the Tax Cuts and Jobs Act in 2017, the American Rescue Plan in 2021 and the Inflation Reduction Act in 2022.

Although politically convenient, the procedure exacts a price. Senate rules prohibit enacting policy changes through reconciliation unless they directly involve revenue or spending. They also bar deficit increases outside a stated budget window (usually 10 years). These restrictions sound like common sense, but in practice they’ve led to disfiguring evasions and sleights of hand.

Anything Republicans want to accomplish, aside from spending money, will be harder under this procedure. On immigration, for instance, they may get more cash for wall-building, but they will likely fail to secure policy changes — such as tougher asylum standards — that would curtail the perverse incentives of the current system. Likewise, energy funding could go much further if paired with reforms to federal permitting rules. As for taxes, negotiators will be tempted again to resort to budget gimmickry that technically satisfies the rules but that in fact yields higher deficits — and less growth — down the road.

As an example, some Republicans want to toy with the “scoring” of the tax bill in ways that could do lasting damage. Fully extending the act’s provisions without offsets might cost $5 trillion, an embarrassment to those who purport to care about fiscal discipline. One solution, mooted by a Republican on the finance committee, would be to simply change the baselines used to calculate these costs — from “current law,” as in the original bill, to “current policy” in the extension — thereby meeting the formal reconciliation requirements while actually ballooning future deficits. Watch as the red ink magically disappears.

 

Such artifice is hardly novel in Washington. But it’s worth emphasizing that, on every one of these issues, a bipartisan bargain is already there for the taking. Deals on immigration and permitting reform nearly passed last year. Both parties have an interest in tax reform. Most of the major bills in recent years — the Chips Act, gun control, a postal-service overhaul, the $1.2 trillion infrastructure bill — were bipartisan deals enacted through the normal process, making for stronger and more durable legislation.

Republicans aren’t being forced to use reconciliation because of Democratic intransigence; they just want to avoid the concessions, compromises and hard choices that normal politics demands — and to free themselves from budget constraints while doing so. They doubtless see it as boldness. It’s just bad government.

____

The Editorial Board publishes the views of the editors across a range of national and global affairs.


©2024 Bloomberg L.P. Visit bloomberg.com/opinion. Distributed by Tribune Content Agency, LLC.

 

Comments

blog comments powered by Disqus

 

Related Channels

ACLU

ACLU

By The ACLU
Amy Goodman

Amy Goodman

By Amy Goodman
Armstrong Williams

Armstrong Williams

By Armstrong Williams
Austin Bay

Austin Bay

By Austin Bay
Ben Shapiro

Ben Shapiro

By Ben Shapiro
Betsy McCaughey

Betsy McCaughey

By Betsy McCaughey
Bill Press

Bill Press

By Bill Press
Bonnie Jean Feldkamp

Bonnie Jean Feldkamp

By Bonnie Jean Feldkamp
Cal Thomas

Cal Thomas

By Cal Thomas
Christine Flowers

Christine Flowers

By Christine Flowers
Clarence Page

Clarence Page

By Clarence Page
Danny Tyree

Danny Tyree

By Danny Tyree
David Harsanyi

David Harsanyi

By David Harsanyi
Debra Saunders

Debra Saunders

By Debra Saunders
Dennis Prager

Dennis Prager

By Dennis Prager
Dick Polman

Dick Polman

By Dick Polman
Erick Erickson

Erick Erickson

By Erick Erickson
Froma Harrop

Froma Harrop

By Froma Harrop
Jacob Sullum

Jacob Sullum

By Jacob Sullum
Jamie Stiehm

Jamie Stiehm

By Jamie Stiehm
Jeff Robbins

Jeff Robbins

By Jeff Robbins
Jessica Johnson

Jessica Johnson

By Jessica Johnson
Jim Hightower

Jim Hightower

By Jim Hightower
Joe Conason

Joe Conason

By Joe Conason
Joe Guzzardi

Joe Guzzardi

By Joe Guzzardi
John Micek

John Micek

By John Micek
John Stossel

John Stossel

By John Stossel
Josh Hammer

Josh Hammer

By Josh Hammer
Judge Andrew Napolitano

Judge Andrew Napolitano

By Judge Andrew P. Napolitano
Laura Hollis

Laura Hollis

By Laura Hollis
Marc Munroe Dion

Marc Munroe Dion

By Marc Munroe Dion
Michael Barone

Michael Barone

By Michael Barone
Michael Reagan

Michael Reagan

By Michael Reagan
Mona Charen

Mona Charen

By Mona Charen
Oliver North and David L. Goetsch

Oliver North and David L. Goetsch

By Oliver North and David L. Goetsch
R. Emmett Tyrrell

R. Emmett Tyrrell

By R. Emmett Tyrrell
Rachel Marsden

Rachel Marsden

By Rachel Marsden
Rich Lowry

Rich Lowry

By Rich Lowry
Robert B. Reich

Robert B. Reich

By Robert B. Reich
Ruben Navarrett Jr

Ruben Navarrett Jr

By Ruben Navarrett Jr.
Ruth Marcus

Ruth Marcus

By Ruth Marcus
S.E. Cupp

S.E. Cupp

By S.E. Cupp
Salena Zito

Salena Zito

By Salena Zito
Star Parker

Star Parker

By Star Parker
Stephen Moore

Stephen Moore

By Stephen Moore
Susan Estrich

Susan Estrich

By Susan Estrich
Ted Rall

Ted Rall

By Ted Rall
Terence P. Jeffrey

Terence P. Jeffrey

By Terence P. Jeffrey
Tim Graham

Tim Graham

By Tim Graham
Tom Purcell

Tom Purcell

By Tom Purcell
Veronique de Rugy

Veronique de Rugy

By Veronique de Rugy
Victor Joecks

Victor Joecks

By Victor Joecks
Wayne Allyn Root

Wayne Allyn Root

By Wayne Allyn Root

Comics

Joel Pett Darrin Bell Daryl Cagle David Horsey Gary McCoy Rick McKee