So now yet another manufactured crisis has ended, and we’ll see if we have another one by Feb. 8.

Here’s how the process should work: Congress should prepare a budget once a year – once – that spells out the nation’s taxing and spending priorities, and then it should make sure its numbers add up. Instead, it lurches from one unnecessary deadline to another, putting off the hard choices and adding debt. This past week’s was the 113th time since 1998 that Congress has passed a temporary funding measure, and this one’s tax cuts will add $31 billion to the deficit – about $100 for every American.

Both sides are at fault for Washington’s toxic atmosphere, but Senate Democrats are mostly to blame for this particular shutdown. They filibustered the funding bill in order to gain concessions for the 700,000 young people brought to America illegally as children – the beneficiaries of the Deferred Action for Childhood Arrivals program, or DACA. In the end, all they got in return was a promise that the issue will be debated in the Senate, which was probably going to happen anyway. Continue reading Whose fault? This time, Senate Democrats →

Uncle Sam is now $20.5 trillion in debt, or about $62,700 for every American man, woman and child. This year, Arkansas’ congressmen, particularly Rep. Steve Womack, have an outsized influence regarding how quickly that debt grows.

Let’s play a little Q and A to explain why.

Q. What’s the latest?

A. The news this week is that Rep. Steve Womack, who represents Northwest Arkansas’ 3rd District, now chairs the House Budget Committee. That means, theoretically at least, he’ll play a leading role in creating the framework for how the government collects and spends your money. Continue reading Can Steve Womack bring balance to the Budget Committee? →

By Steve Brawner

© 2017 by Steve Brawner Communications, Inc.

Let’s say you’re changing jobs, leaving one that was relatively secure for one with an uncertain future. You think it’s possible you’ll make more money, but it’s likely you’ll make less. What would you do beforehand?

You probably should carefully determine what your spending patterns are, and then adjust downward until they match your most likely income. You’d look for areas of waste first, followed by luxuries. But then you might also have to cut some of the more important stuff.

Once you’d done that, then, one last time, you’d carefully consider if changing jobs is really the wisest move. And then if it’s still a go, you would do all you could to find additional revenues.

And if you did all that, you would be doing the opposite of what Congress is doing. Continue reading The return of $1 trillion deficits →

By Steve Brawner

The economy grew 3 percent in the third quarter, which was pretty good – almost as good as the second quarter, when it grew 3.1 percent. The past four quarters, in fact, have been better than the previous four. Meanwhile, the federal budget deficit was bigger in 2017 than it was in 2016.

Hmm. That’s weird, because we’re being told that economic growth by itself reduces deficits.

Here’s the background. President Trump and congressional Republicans have been pushing for tax cuts. To get there, they needed to pass a budget that would allow the cuts to pass with a simple majority. Otherwise, the Democrats would filibuster.

The House of Representatives voted for a budget that included a framework for both tax cuts and offsetting spending cuts. On paper, the yearly deficits would end by 2027, though the overall debt, now $20.4 trillion and much bigger by 2027, would remain.

Then the Senate passed its own budget that includes a framework for tax cuts, which are popular, without spending cuts, which are not. In fact, it calls for a total of only $1 billion in cuts out of a potential $47 trillion in spending. That’s a cut of .00002 percent. If you weighed 250 pounds and were trying to lose weight, that would be .005 percent of a pound. That’s some kind of painless diet. Arkansas Sens. Tom Cotton and John Boozman voted for it. The House of Representatives, including all four members of the state’s delegation, quickly voted to shelve their own plan in favor of the Senate’s. Continue reading Not if you don’t cut spending →