Thursday, October 29, 2015

Deadlock in Congress about to break? Is it possible?

The House Republicans voted Wednesday to nominate Paul Ryan (R-WI) as their choice for Speaker by a vote of 200 to 45.   Some of those supporting him are from the Freedom Caucus, the sub-group of ultra-conservative, oppositionists who gave John Boehner such a hard time and led to his resignation.

Let's see how long the Ryan honeymoon lasts and whether he gains more support or loses what he seems to have from the far right wing.

It's not just this fragile unity that gives cause for some optimism.   The other big factor is that announcement that a budget deal is imminent that has been quietly worked out among the staffs of Boehner and Pelosi in the House with the White House staff -- a deal that would not only extend the looming debt ceiling crisis but would provide a framework to prevent further crises over it until March 2017.

From what has been released, it seems that both sides have compromised, giving up some things they want.   Most notably, Republicans have agreed to some increased spending above the sequester limits, divided equally between defense and domestic programs.   The Democrats have agreed to some cuts in Medicare and Social Security -- but the changes don't seem to be major.   They are enough for the Republicans to be able to say they "cut entitlements," but don't do a lot of damage to Medicare and SS recipients.

Tax revenue will be increased but without actually raising tax rates.   It will come primarily from increased budgets for regulators and auditors to collect taxes from hedge fund managers and investors who have been getting away with avoiding taxes on their deals.

Everyone seems to assume that this budget bill will get passed while Boehner is still Speaker, thus giving Ryan a clean slate as far as budgetary matters are concerned.    Ryan is able to say he was not part of the deal (even though his staff worked on it), so the far right won't get to blame him from the get-go of his time as Speaker.

This seems like a good thing all around -- except the die-hard Tea Party crowd, who seem to have lost their power to derail any progress.   With Boehner leaving, he can cut a deal with Democrats without having to worry any longer that they will depose him.

Ralph

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