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reporter2
01-10-21, 14:12
Despite setback, Democrats try to save Biden $3.5T plan

By LISA MASCARO

WASHINGTON (AP) — Despite a long night of frantic negotiations, Democrats were unable to reach an immediate deal to salvage President Joe Biden’s $3.5 trillion government overhaul, forcing leaders to call off promised votes on a related public works bill. Action is to resume Friday.

Speaker Nancy Pelosi had pushed the House into an evening session and top White House advisers huddled for talks at the Capitol as the Democratic leaders worked late Thursday to negotiate a scaled-back plan that centrist holdouts would accept. Biden had cleared his schedule for calls with lawmakers but it appeared no deal was within reach, particularly with Democratic Sen. Joe Manchin.

Manchin refused to budge, the West Virginia centrist holding fast to his earlier declaration that he was willing to meet the president less than halfway — $1.5 trillion.

“I don’t see a deal tonight. I really don’t,” Manchin told reporters as he left the Capitol.

Deeply at odds, the president and his party are facing a potentially embarrassing setback — if not politically devastating collapse of the whole enterprise — if they cannot resolve the standoff over Biden’s big vision.

At immediate risk was a promised vote on the first piece of Biden’s proposal, a slimmer $1 trillion public works bill that is widely supported but has faltered amid stalled talks on his more ambitious package. Progressives were refusing to back the roads-and-bridges bill they view as insufficient unless there’s progress on Biden’s broader plan that’s the heart of the Democratic agenda. With support, leaders canceled a promised Thursday night vote, and said the House would be back in session Friday.

Pelosi called it a “day of progress” in a letter to colleagues, but offered few other words on the path forward.

White House Press Secretary Jen Psaki released a statement saying: “A great deal of progress has been made this week, and we are closer to an agreement than ever. But we are not there yet, and so, we will need some additional time to finish the work, starting tomorrow morning first thing.”

The political stakes could hardly be higher. Biden and his party are reaching for a giant legislative accomplishment — promising a vast rewrite of the nation’s tax and spending plans — with a so-slim majority in Congress.

The president’s sweeping proposal topped at $3.5 trillion would essentially raise taxes on corporations and the wealthy and plow that money back into government health care, education and other programs, all of it touching the lives of countless Americans. He says the ultimate price tag is zero, because the tax revenue covers the spending costs.

With Biden working the phones and top White House officials shuttling at the Capitol, talk swirled of the Democratic leaders trying to ease off the stalemate by reaching a broader deal, a compromise with Manchin and Sen. Kyrsten Sinema of Arizona, two centrist Democrats who are the linchpins to Biden’s goals.

The idea was to produce the contours of an agreement over Biden’s broader package, proceed with the $1 trillion public works bill and negotiate the rest of Biden’s big health care, education and climate change bill in the days to come. Lawmakers were told to stick around for possible late-night votes.

But as the night dragged on, it became clear that Manchin was not on board with a higher figure and chiseling away at that $3.5 trillion topline risked losing progressive leaders who said they have already compromised enough and saw no reason to rush a deal to bring the centrists around to supporting the president’s agenda.

“We’ve been fighting for transformative legislation as all of you know, these discussions have gone on for month after month after month,” said Sen. Bernie Sanders, I-Vt., the chairman of the Budget Committee and a leading progressive lawmaker. “This is not a baseball game. This is the most significant piece of legislation in 70 years.”

All this on a day that saw a partial win for Democrats, with Congress passing and Biden signing legislation to keep the government running past Thursday’s fiscal yearend deadline and avert a federal shutdown that had been threatened by Republican blockades.

The public works bill is one piece of that broader Biden vision, a $1 trillion investment in routine transportation, broadband, water systems and other projects bolstered with extra funding. It won bipartisan support in the Senate but has now become snared by the broader debate.

Attention remains squarely focused on Manchin and Sinema, two centrist Democrats who helped steer that bipartisan bill to passage, but have concerns that Biden’s overall bill is too big. The two senators have infuriated colleagues by not making any counter-proposals public.

Under scrutiny, Manchin called an impromptu press conference Thursday outside the Capitol, insisting he has been clear from the start.

“I’m willing to sit down and work on the $1.5,” Manchin told reporters, as protesters seeking a bigger package and Biden’s priorities chanted behind him.

Manchin said he told the president as much during their talks this week, and confirmed that he put his views to paper during earlier talks this summer with Schumer.

It’s not just Manchin’s demands to reduce the overall size, but the conditions he wants placed on new spending that will rile his more liberal colleagues as he works to ensure the aid goes only to lower-income people, rather than broader swaths of Americans. Tensions spiked late Wednesday when Manchin sent out a fiery statement, decrying the broad spending as “fiscal insanity.”

Sinema was similarly working to stave off criticism and her office said claims that she has not been forthcoming are “false” — though she has not publicly disclosed her views over what size package she wants and has declined to answer questions about her position.

Sinema has put dollar figures on the table and “continues to engage directly in good-faith discussions” with both Biden and Schumer, spokesman John LaBombard said in a statement.

Democrats’ campaign promises on the line, the chairwoman of the Congressional Progressive Caucus, Rep. Pramila Jayapal, said exiting Pelosi’s office that the progressives’ views were unchanged -- they won’t vote for one bill without the other and would stay all weekend to get a deal.

“Inaction is insanity,” said Rep. Ilhan Omar, D-Minn., another progressive leader, pointing her criticism clear at Manchin’s remarks.

“Trying to kill your party’s agenda is insanity. Not trying to make sure the president we all worked so hard to elect, his agenda pass, is insanity.”

Centrists warned off canceling Thursday’s vote as a “breach of trust that would slow the momentum in moving forward in delivering the Biden agenda,” said Rep. Stephanie Murphy, D-Fla., a leader of the centrist Blue Dog Democrats.

At the same time, Congress mostly resolved a more immediate crisis by passing legislation to provide government funding and avoid a federal shutdown, keeping operations going temporarily to Dec. 3. The House quickly followed, and Biden signed the bill Thursday evening.

With Republicans opposed in lockstep to the president’s big plan, deriding it as slide to socialist-style spending, Biden is reaching for a deal with members of his own party for a signature legislative accomplishment.

Biden insists the price tag actually will be zero because the expansion of government programs would be largely paid for with higher taxes on corporations and the wealthy — businesses earning more than $5 million a year, and individuals earning more than $400,000 a year, or $450,000 for couples.

reporter2
01-10-21, 14:20
Only in Leftieland is $1.5 trillion considered a ‘compromise’

By Brian Riedl

September 30, 2021

You know things have gone crazy when a trillion dollars is considered a compromise.

Yesterday, Sen. Joe Manchin (D-WV) insisted he cannot support a reconciliation bill costing more than $1.5 trillion — $2 trillion less than most Democrats want. And he insisted that this bill must be fully offset.

“I can’t support $3.5 trillion more in spending when we have already spent $5.4 trillion since last March,” he said. “At some point, all of us, regardless of party must ask the simple question — how much is enough?”

Manchin’s Democratic colleagues continue to express exasperation, saying they had already compromised down from Bernie Sanders’ $6 trillion demand. Progressive activists on social media have erupted that Manchin may as well join the Republicans.

In reality, the Manchin backlash reveals how far leftward the Democratic party has shifted. After all, Manchin already voted for the $1.9 trillion stimulus bill in March, and helped craft the $550 billion infrastructure bill that passed the Senate. He also voted for a budget resolution that increases the discretionary spending baseline by $1 trillion over the decade. Even supporting “only” $1.5 trillion in new reconciliation spending brings a total price tag of $5 trillion across these bills. And that’s before Congress cancels the fake expiration dates meant to hide the true costs of policies such as the extended child tax credit.

So in today’s Democratic party, supporting a mere $5 trillion spending spree in a span of eight months earns progressive demands to be stripped of committee assignments and purged from the party.

A little perspective: $5 trillion in new spending (of which $3.5 trillion would be borrowed) dwarfs the size of the recent $1.5 trillion tax cuts, and exceeds the entire 20-year cost of the war on terrorism. And Democrats are piling this inflationary borrowing spree on top of $6 trillion in (mostly-necessary) pandemic debt, and $12 trillion in baseline budget deficits over the next decade.

This is no longer your parents’ Democratic party — or even your older brother’s party. Previous Democratic presidential nominees John Kerry, Barack Obama, and even Hillary Clinton each proposed federal spending expansions of between $1 trillion and $2 trillion over the subsequent decade. Those candidates also proposed roughly equivalent tax increases (with varying credibility) to at least give lip service to controlling the deficit.

By contrast, candidate Joe Biden promised a staggering $11 trillion in new spending, combined with $3 trillion in new taxes. His agenda would increase the debt held by the public — $17 trillion before the pandemic — to $44 trillion a decade from now. And yet Biden was considered a centrist compared to the fantasyland spending sprees proposed by rival candidates Bernie Sanders ($97 trillion over the decade), and Elizabeth Warren ($40 trillion).

Surely no one in the media would describe a Republican plan to cut taxes by $11 trillion as “centrist.”

But this is where today’s Democratic party stands. There is no longer any room for moderates, or even Obama-style liberals.

Brian Riedl is a senior fellow at the Manhattan Institute.