Kevin McCarthy’s Job Just Got Harder

“meaningful concession is McCarthy’s reported agreement to reserve three seats for hard-core conservatives on the House Rules Committee. The Rules Committee is one of the most powerful committees in the House — setting the rules (duh) of debates, choosing which pieces of legislation to bring up to a vote and even rewriting legislation that has already passed another committee. If the Rules Committee maintains its traditional partisan composition — nine members of the majority party, four of the minority — then it could have six McCarthy-aligned Republicans, three insurgent Republicans and four Democrats, which means that McCarthy-aligned Republicans would constitute a minority on the committee. In the words of one conservative activist, that would effectively make the Rules Committee a “European-style coalition government” where the hard-right bloc is like a third party, and McCarthy and his allies would have to negotiate with them (or Democrats) to get anything done.
This, in turn, could make it more likely that the federal government shuts down and/or defaults on its debt in 2023. The insurgent wing of the GOP was at the center of the government shutdown fight in 2013 and the debt ceiling fight in 2011, and McCarthy has agreed to fight for their preferred spending cuts here in 2023. But of course, nothing can become law without buy-in from the Democrats who still control the Senate and the White House, who are about as ideologically far removed from the conservative hardliners as it gets.”

Read the January 6 committee’s damning report on Trump’s election subversion efforts

“The report provides evidence the committee collected to assert that Trump knew throughout his campaign to remain in power that he’d lost, that he knew the conspiracy theories he publicly advanced about election fraud were false, that he pressured officials to back his bid to challenge the results despite being told he could be breaking the law, that he lied in federal court, and that he spurred on the insurrectionists even after he’d been told they were armed, some heavily. The violence and death of January 6, the report argues, was the culmination of that failed effort.

The nearly 850 page report was compiled following more than 1,000 interviews with figures with firsthand knowledge about the attack on the Capitol and the events that led up to it”

“Trump wanted to go to the Capitol after his speech at the Ellipse, is said to have had a physical altercation with a Secret Service agent, and broke things at the White House when his aides wouldn’t let him join the insurrectionists”

“Witnesses claimed Trump said Vice President Mike Pence “deserves” the threats of hanging he received while at the Capitol to certify the election”

“Far-right Reps. Scott Perry (R-PA), Andy Biggs (R-AZ), Mo Brooks (R-AL), Matt Gaetz (R-FL), Louie Gohmert (R-TX), and Marjorie Taylor Greene (R-GA) all were said to have asked Trump for pardons for their roles in the January 6 riot; many have denied doing so”

The GOP’s Current Plan To Cut Spending Is a Political Failure

“According to the Manhattan Institute’s Brian Riedl, the GOP plan so far is to cut $130 billion from discretionary appropriations. Unfortunately, the defense budget and veterans health funds are excluded from cuts, despite making up $993 billion out of $1,602 billion discretionary budget. As Riedl notes, their plan will require “freezing those two items and cutting everything else by 21% immediately.”
This maneuver guarantees political failure for the Republicans’ plan.”

“imposing cuts on only a small share of the discretionary budget excludes trillions of dollars from scrutiny and is a political nonstarter.”

“while limiting discretionary spending is a good start, fiscal sustainability requires that Congress also cut the mandatory side of the budget. Indeed, Social Security, Medicare, and Medicaid—not defense or education—are still the chief drivers of our future debt, just as they have been in the past. Along with the interest the Treasury must pay on the debt, these three programs will be responsible for 86 percent of federal spending between 2008 and 2032, says Riedl. In other words, no level of discretionary spending cuts will ever be enough to control the upcoming debt explosion.”

McCarthy’s speaker chaos could make Democrats more powerful

“Given Republicans’ narrow 222-person majority, they can’t really pass much if they lose any more than five votes in their own conference. Since conservatives have been vocal about their commitment to blocking key bills, like an increase to the debt ceiling, in order to get the spending cuts they want, Republicans will likely need Democratic votes to keep essential government functions and services running if they want to do so.
Additionally, given the number of Freedom Caucus members added to the House Rules Committee, Democrats could theoretically join with the conservatives on the panel to block or slow bills favored by House GOP Leadership.

The situation gives Democrats more leverage to put forth their own demands, if Republican leadership is actually interested in getting anything done. Of course, there’s a high chance that they aren’t”

“In 2011 and 2014, Republican House Speaker John Boehner needed Democratic votes to approve spending bills to fund the government”

“McCarthy’s concessions included adding multiple members of the Freedom Caucus to the Rules Committee, which plays a key role in deciding what bills make it to the floor and what amendments get considered. Should three ultraconservative Republicans be added to that committee, something McCarthy agreed to, they’d be able to delay bills and push more extreme versions of policies.

That’s led some Democrats to worry these changes will empower Republicans’ conservative flank to use the panel for obstruction. “We have a small faction basically holding Congress hostage,” Scanlon says. “Many of the rules changes that are being proposed by this kind of extreme faction have the same goal.”

Rep. Norma Torres (D-CA), a member of the Rules Committee, notes that conservatives could gum up the process on bills by forcing debate on amendments, whether or not they are germane to the legislation at hand. “It’s impossible to legislate from that perspective,” she said.”

House GOP obsesses over mirage of a backroom-deal doc

“Speaker Kevin McCarthy and his GOP allies insist that no back-room promises were made to land his gavel after 15 frenetic ballots, that no plum committee spots, precise spending cuts, or debt limit strategy were guaranteed in a quid pro quo. Agreements and goals were reached with conservatives who initially withheld their votes from the speaker, GOP leaders say, but nothing was formalized in writing.”

“One McCarthy holdout, Rep. Byron Donalds (R-Fla.), bluntly told Fox News when asked “what did you get” that he would join the influential GOP Steering Committee “as Speaker McCarthy’s designee.”
McCarthy also informed members that the House would take its first-ever vote this Congress on a contentious national sales tax bill that Georgia Republicans — including McCarthy dissenter Rep. Andrew Clyde (R-Ga.) — have pushed for decades.

“That was part of the negotiation. The 20 conservatives who were holding out, one of the things that they wanted was to see it come to the floor for a vote,” Rep. Buddy Carter (R-Ga.) said.”

“Another McCarthy promise was to diversify the membership on coveted House panels, which in practice means adding more Freedom Caucus members and other conservatives. That has begun to happen: Four speaker-race holdouts — Clyde, Donalds, Rep. Michael Cloud (R-Texas) and Rep. Andy Ogles (R-Tenn.) — were awarded spots on prime committees”

“Clyde stressed: “There’s no secret rules addendum. There’s just an agreement.”

The rumored existence of a binding secret document, however, prompted multiple GOP lawmakers to approach their leaders about it, texting each other in search of the missing paper.”

“Some House Republicans argue that the most divisive of the concessions floating around are “aspirational” — particularly on issues like spending and the debt limit, which would need to get buy-in from the Democratic Senate and White House to go anywhere.”

Congress Can Reduce the Deficit by $7.7 Trillion in 10 Years

“the CBO published its report on budget options. The two-volume document highlights options for deficit reduction. One volume details large possible spending reductions while the other lays out small ones—so the options are plenty. They include important reforms of some of the major drivers of future debt: Medicare, Medicaid, and Social Security.

All told, it’s possible to achieve deficit reduction of $7.7 trillion over 10 years. That’s enough to accomplish what some people mistakenly believe to be out of reach: balancing the budget without raising taxes. There are also a few options to simplify the tax code by removing or reducing unfair individual tax deductions and by cutting corporate welfare.

For instance, it’s high time for Congress to end tax deductions for employer-paid health insurance. This tax deduction is one of the biggest of what we wrongly call “tax expenditures.” It’s responsible for many of the gargantuan distortions in the health care market and the resulting enormous rise in health care costs. The CBO report doesn’t eliminate this deduction; instead, it limits the income and payroll tax exclusion to the 50th percentile of premiums (i.e. annual contributions exceeding $8,900 for individual coverage and $21,600 a year for family coverage). The savings from this reform alone would reduce the deficit by roughly $900 billion.

A second good option is to cap the federal contribution to state-administered Medicaid programs. That federal block grant encourages states to expand the program’s benefits and eligibility standards—unreasonably in some cases—since they don’t have to shoulder the full bill. CBO estimates that this reform would save $871 billion.

CBO also projects that Uncle Sam could reduce the budget deficit by $121 billion by raising the federal retirement age. CBO’s option would up this age “from 67 by two months per birth year for workers born between 1962 and 1978. As a result, for all workers born in 1978 or later, the FRA would be 70.” Considering that seniors today live much longer than in the past and can work for many more years, this reform is a low-hanging fruit.

Congress could save another $184 billion by reducing Social Security benefits for high-income earners. I support a move away from an age-based program altogether since seniors are overrepresented in the top income quintile. Social Security should be transformed into a need-based program (akin to welfare). Nevertheless, the CBO’s option would be a step in the right direction.”

Here’s why defunding the IRS is the House GOP’s first priority

“The House GOP’s first bill out of the gate doesn’t address inflation or gas prices or immigration, but instead zeroes in on the Internal Revenue Service.
The bill set to be voted on Monday evening — barring a stalemate over approving the rules for the 118th Congress — would reverse much of the $80 billion in extra funding set aside for the agency by 2022’s Inflation Reduction Act.

While it has little chance of being enacted with Democrats in control of the Senate, the prominence of the issue shows just how much the IRS has become a target of Republicans even though experts say the funds in question would go toward more prosaic concerns like helping the agency chase down tax cheats and refresh its shockingly outdated technology.”

“The claim from McCarthy, which has been echoed by many Republicans, is that the influx of money will lead to a flood of 87,000 new IRS agents who will then harass everyday Americans. Some critics of the agency go even further and claim these new agents will be armed.

But fact-checkers have repeatedly debunked the claims, and the agency itself pushed back in a Yahoo Finance op-ed from then-IRS Commissioner Charles Rettig in August.

The viral claims are “absolutely false,” Rettig wrote at the time, adding his agency “is often perceived as an easy target for mischaracterizations,” but he promised the new money will not lead to increased audit scrutiny on households making under $400,000.

The plan is instead for much of the money to go toward wealthy tax cheats. IRS estimates of the so-called “tax gap” — the difference between what taxes are owed to the government and what is actually paid — is hundreds of billions of dollars a year.

Much of the $80 billion will be focused on taking a bite out of the gap, focusing on wealthy tax payers. The investment is projected to pay for itself and then bring in over $100 billion in increased tax revenue over the coming decade.

In addition, a May 2021 report by the Department of Treasury estimated that more IRS funding could lead to 86,852 new employees, but many of those new employees would not be agents. Many would work in other areas like information technology.

And nearly all new agents would be unarmed.”

Kevin McCarthy Doesn’t Have Enough Fans Inside The House … Or Outside It

“While this political stalemate is notably historic, it can also feel a bit inside baseball. It got me wondering how Republican voters are feeling about the party and its leadership as a whole. It’s a bit too early to have polling on this week’s dramatics, but some recent surveys have captured the general mood of Republicans heading into the vote for speaker. In a late November poll from Deseret News/HarrisX, Republicans were pretty evenly split on whether they thought McCarthy should continue to be a party leader: Thirty-five percent said he should maintain his role as a leader, 33 percent said the party should move on from McCarthy, and 32 percent said they were unsure or didn’t know. This ambivalence about McCarthy stood in contrast to Republicans’ feelings toward other party leaders, which were much more cohesive. Most Republicans said that former President Donald Trump should remain a leader and that Senate Minority Leader Mitch McConnell ought to be replaced. Similarly, in another poll from November fielded by The Economist/YouGov, 39 percent of Republicans said McCarthy should remain a leader in the House, but a slim majority (51 percent) said they either didn’t know or didn’t care.
It’s not that McCarthy is wildly unpopular among Republicans, but he’s not exactly a fan favorite, either. In that Economist/YouGov poll, 45 percent of Republicans viewed McCarthy favorably, compared to 31 percent who viewed him unfavorably — not great, but not as bad as, say, McConnell, who had a 55 percent unfavorable rating amongst his party. A CNN/SSRS poll in December found McCarthy’s net approval was +30 points among Republicans, the second-lowest same-party net favorability among all first-time potential speakers in nearly three decades. That same poll also found 15 percent of Republicans had “never heard of” McCarthy, while 28 percent had no opinion of him. And the GOP rank and file’s relatively lukewarm feelings for McCarthy may be emboldening right-wing dissenters to continue their crusade against his speakership — polling suggests voters won’t be fussed too much whether McCarthy is speaker or not.”

Five ways lawmakers smacked down Biden’s Pentagon plans

“By signing the bill, Biden will be forced to agree to a repeal of the Pentagon’s policy requiring troops to receive the Covid vaccine or face expulsion from the military.
The repeal is a victory for Republicans who pushed to do away with the policy during negotiations on a final defense bill. Conservatives have hammered the administration for forcing out thousands of military personnel and piling onto an already rough recruiting environment.

Rescinding the August 2021 mandate is a black eye for Biden and Defense Secretary Lloyd Austin, who still back the policy as a matter of health and readiness for the armed forces.”

“The bill, however, doesn’t prohibit a new vaccine requirement in the coming months, meaning Austin could implement a new policy when the 2021 directive is repealed. Doing so, however, would spark a battle with the Republican-controlled House next year.”

“Both parties roundly rejected Biden’s $813 billion military spending plan as too low to meet worldwide threats and counter the impacts of inflation on the Pentagon.

Instead, Congress endorsed that hefty $45 billion increase to Biden’s budget, which already would have boosted defense by about $30 billion over last year’s level. The final bill amounts to an increase of roughly $75 billion, or nearly 10 percent, from the previous year.

The additional money went toward buying more weapons as well as efforts to blunt the effects of inflation on Pentagon programs, troops and construction.

This marks the second straight year that Congress has significantly rewritten Biden’s budget. Defense legislation approved last year authorized an increase of $25 billion to the administration’s first proposal. It’s a pattern Rep. Mike Rogers (R-Ala.), who is set to chair House Armed Services next year, chalked up to Congress and the White House rarely seeing eye to eye on federal spending.”

“Congress foiled one of the few major changes Biden proposed to the nuclear arsenal, keeping alive a sea-launched cruise missile first proposed by the Trump administration.

Proponents of canceling the developmental program criticized it as costly, destabilizing and redundant, because Biden kept low-yield nukes fielded by the Trump administration deployed aboard ballistic missile submarines. A 2021 report by the Congressional Budget Office estimated the missile will cost $10 billion through 2030.

But lawmakers ultimately authorized $45 million to continue the program after top military brass, including Joint Chiefs Chair Gen. Mark Milley, publicly expressed support for the weapon, in a split with Austin and other top civilians who argued the missile isn’t needed.”

“Lawmakers also voted to require the Pentagon to keep most of its inventory of B83 nuclear gravity bombs, which Biden proposed retiring. The agreement prohibits retiring or deactivating more than 25 percent of the stockpile until the Pentagon provides Congress with a study on how it will field capabilities to strike hard and buried targets.”

“Lawmakers authorized $32.6 billion to buy new ships, boosting the budget by $4.7 billion and ordering up three new hulls the Navy didn’t ask for.

The additions include a third unrequested Arleigh Burke-class destroyer, which the White House said it “strongly opposes” when the House approved it. Navy leaders have questioned whether a strained shipbuilding base can handle a rate of three destroyers per year. The bill also set a legal floor of 31 amphibious warships for the Navy, which the administration also opposes, arguing it would “unduly constrain” military planning.

Congress also threw a wrench into Navy plans to retire two dozen ships. The move was aimed at saving money but it also drew criticism on Capitol Hill because the plans would have scrapped some troubled littoral combat ships relatively early in their service lives.

The compromise bill ultimately bars the Navy from retiring a dozen warships it had planned to decommission, including five littoral combat ships and a Ticonderoga-class cruiser.

The legislation also crimps efforts by the Pentagon to retire dozens of aircraft. It jams up the administration’s plans to retire Navy EA-18G Growler electronic warfare jets, requiring the service to maintain a fleet of at least 158 aircraft through fiscal 2027. The bill similarly blocks efforts by the Air Force to retire some F-22 fighters through fiscal 2027.

Lawmakers also limited the Air Force’s ability to reduce its fleet of E-3 Airborne Warning and Control System planes below a certain level. Those restrictions would be eased if the service submits an acquisition strategy or awards a contract for its successor, the E-7 Wedgetail.

Lawmakers, meanwhile, boosted procurement for a swath of aircraft across the military services. Most notably, Armed Services leaders approved $666 million for eight Boeing F/A-18 Super Hornets the Navy didn’t seek in its budget, keeping the production line active.”