Nutter's Washington

Congressional gridlock is no more due to lack of conflict:

 

Congress has been in and out of session over the last month. The only constant here in DC it seems has been snow and cold weather. There has been little accomplished in Congress since the earlier funding of the federal government for this fiscal year passed followed by the passing of legislation to increase the debt ceiling until March 2015.  

These usually confrontational economic measures are out of the way until this fall, and probably beyond the election, ending possible disruption of government.

The President did submit a budget in early March, albeit a month after statutorily required, but little attention has been paid to it. It is doubtful a new budget outline will be considered this year.

Natural gas exports

There are a couple of issues that are receiving considerable attention. The first is the export of liquefied natural gas (LNG). The Department of Energy has been gradually reviewing and approving licenses to allow the export of gas but the political and diplomatic situation involving Russia and Ukraine has energized some lawmakers to urge a fast-track of exports from U.S. gas supplies to other countries dependent on energy from Russia.

The Department of Energy in the last few days gave the go ahead to a seventh project that would send gas to countries that do not have a free-trade agreement with the United States -- bringing allowable exports to 9.3 billion cubic feet per day. Of course, there are still other hurdles-like retrofitting facilities and other legal challenges, to face before significant gas starts flowing abroad. 

The gas export debate will be around for a while as both Senate and House deliberation will feature pleas from abroad for the gas, warnings from domestic manufacturers worried about supply and price and competing reports from “experts” about what would happen to domestic energy prices, jobs and emissions.

So far the Administration has stuck to its policy of continuing its case-by-case review of LNG export projects. However, pressure to speed up is increasing.

Tax Reform

The second major issue is tax reform being championed by Ways and Means Chairman Dave Camp (MI-R). While major tax reform is unlikely to be seriously considered this year, Mr. Camp is proceeding ahead using his proposal released last month of eliminating deductions and credits while reducing marginal rates as the foundation.  However, there is only lukewarm support by the House leadership to tackle such a large issue – especially in an election year.  There is little support of tax reform in the Senate by either party. In addition, an inactive Administration makes this an issue for the next Congress.  

The matters bears watching for the future as Mr. Camp intends to: 

Hold additional bipartisan meetings with the staff of JCT on the draft;

Hold public hearings on specific portions of the bill; and

Begin advancing permanent legislation through the Committee that paves the 
way for tax reform by making incremental progress towards full reform.

The other tax issue outside but related to tax reform on the horizon deals with 50 or so provisions that expired at the end of last year, the so-called “extenders”. New Senate Finance Committee Chairman Ron Wyden (D-OR) has made dealing the expiring provisions a priority and Mr. Camp as also has stated his Committee will continue its work of going policy by policy to determine which extenders should be made permanent in a series of hearings and mark-ups on dates not yet announced.

There is a sense that gridlock is on the wane. However, what Washington has entered is a state of “non-lock”. There are not enough big substantive issues that either side will consider to lock the process. The House and Senate operate almost without recognizing the other body.

The real state of affairs is the November election. For Republicans, it is all about the election even more so than for the Democrats. Votes, positions, policy, investigations, action and inaction are all designed to put the opposition into difficult positions. However, Republicans know that unless they can control Congress, they will continue to be nothing more than an obstructive nuisance. Mr. Obama knows that without the backstop of the Democrat Senate, the last two years of his term will be quite different.

 

 

 

Wow, Obama No More Mr. Nice Guy on Ukraine

 

If the posture and actions by the Obama Administration on the Russian annexation of the Crimea was formerly merely embarrassing, it now has become beyond a joke. In fact, it is painful to watch a "leader" flounder so badly. 

However, never let and opportunity to be decisive pass as being Mr. Tough Guy, the President said today

"We are today sanctioning a number of other individuals with substantial resources and influence who provide material support to the Russian leadership, as well as a bank that provides material support to these individuals."

This bold move is in addition to the first round of sanctions against 11 Russians and Ukrainians said were involved with the Crimea annexation.

My goodness, I bet the entire Russian Republic is quaking in its boots. Those affected Russians entrenched in their mansions and dachas must be afraid as they loot the rest of the country. 

President Obama, strong, courageous and bold. 

It is hard to make this kind of stuff up. Like a SNL parody. If it was not so dangerous, it would merely be pathetic. 

Reset? Anyone? 

Go Arizona Wildcats--Bear Down

I am a graduate of tthe University of Arizona College of Law. Born in Arizona, I grew up about 60 miles  from Tucson. In my student days, I attended the UA basketball games because tickets were 50 cents each and going to the games was a welcome respite from briefing cases.

I became a huge fan of the program. Football, forget it in the Old Pueblo but basketball, now there was excitement.

Arizona has reclaimed its status as an elite program under Coach Miller after a couple of years of transition after Saint Lute departed. The future looks bright. 

The Cats have had a great season at 30-4 and number 1 seeding and I wish them the best of success in the tournament. I know I will be watching and yelling.

Bear down

 

Things in the news to catch the interest: Polls, Ukraine, CIA and Tax Reform

There are a few items that caught my interest in the last day or so. They bear some comment but no great, inspiring news here. 

The first is there was a new a new Wall Street Journal/NBC News poll released overnight. I indicted that Mr. Obama now has the lowest job-approval ratings of his presidency.  Accordingly to the poll, only 41% of American approve of his job performance. With the election less than 8 months away, the popularity of the President will have an impact on Democrats, particularly in the those states that will play a large role in deciding possible change of control of the Senate. The real interesting question is who (and why) are the 41%?  Checked your health insurance lately? Seen the deficit lately? Wonder if the NSA or the IRS is watching you?

The second item involved the charges of Senator Diane Feinstein (D-CA) that the CIA has been “spying” on the Senate Intelligence Committee by tapping their computer system. Senate Majority Leader Harry Reid (D-NV) has asked the CIA to apologize. Apologize, are you kidding?  If true in any respect, this type of conduct should result in the immediate resignation of the head of the CIA and all those involved. There should be arrests and indictments. This is the worse of the 1984 scenario we now live in.  How could it be the government has become so morally bankrupt that the people running it would even contemplate such activity? This is really scary stuff. Let’s see the outrage from the Administration.

The third item is the Ukraine. This is also a big deal and exemplifies how inept and powerless the United States has become. Apparently the old “reset” button inspired by Hillary Clinton on relations with Russia did not work. Russia has been unhelpful in supporting any positive progress- except by lip service- on issues as diverse like the Syria slaughter, the acquisition of nuclear weapons material by Iran and on and on.  The administration fail to see what was coming, failed to act years ago to counterbalance Russian plans. It is either incompetence or fecklessness. Not sure what is worse.

 Final item is tax reform. A survey of tax professional and knowledgeable people who follow such matters recently released a survey that zero percent believed tax reform would be accomplished in this Congress. I have been saying this for some time. Disappointing. If there is one thing that would encourage economic growth and enhanced competitiveness it is major tax reform. Not going to happen. Congress does not have to moxie to do anything; the Administration has no interest from deviating from its more taxes mantra.  

 

Obama Submits 2015 Budget: It is another disappointment

The Administration released it 2015 budget today, a month and a day late. It might as well been a year late or maybe never submitted at all.

It is a political document and in some ways that can be expected. What it is not is a serious attempt to address the fiscal woes of the government driven by high debt, increasing debt, unchecked and unsustainable entitlement programs.

It is hard to believe the country can tolerate such fecklessness.

In any event, I reviewed the revenue portions of the proposal. Same unrealistic, pathetic stuff as before. Tax the wealthy, closed the same old loopholes (whatever that means) Oh yeah, and the is the best one, increase the Earned Income Tax Credit (EITC), the largest area of abuse in the tax code and just a plain old welfare and income transfer program. It has no place in the tax code, put it where it belongs.

If Mr. Obama wants to fool with the tax code, he should be a player in tax reform. He is not. He only wants more dough to spend, no matter if the economy suffers, remains inefficient, rewards and subsidizes his big corporate donors.

Not going to spend much time on all of this. It is totally forgettable.