Alexander Hamilton won in the end. As Treasury Secretary in the 1790s he championed an array of “internal” taxes to supplement federal revenues from import tariffs. Thomas Jefferson despised Hamilton’s internal taxes as assault on liberty, and when elected in 1800 he made sure that they were abolished.
A benefit of the government shutdown may be that it slows the stream of waste and bad behavior flowing from the federal bureaucracy. Catching up on my reading, I noticed these items in just the last few days of the Washington Post:
All eyes are on the government shutdown battle over Obamacare. Here are a few thoughts:
Senator Ted Cruz’s filibuster was impressive. Naysayers claim that it was pointless because Obamacare won’t be defunded this year with a Senate and White House controlled by Democrats. But at a minimum, Cruz and supporting senators have highlighted the huge flaws in the health law and reminded everyone of its unpopularity. If Republicans actually want to repeal the law—as they all say they do—then they need to take every opportunity to hammer away at it.
Commenting on the federal budget the other day, House Minority Leader Nancy Pelosi said “the cupboard is bare. There’s no more cuts to make.”
As policymakers begin fighting over this year’s appropriations, the Congressional Budget Office has released a long-term projection that puts today’s budget battles in broader context. The federal government is in the most unique and dangerous fiscal situation that it has ever been in during peacetime.
I was struck by a photo and story in the Washington Post and Baltimore Sun earlier this week. A group of high-powered politicians had assembled at the Port of Baltimore for a ceremony to roll out a federal grant for seaport investment. The group included the vice president of the United States, the two U.S. senators from Maryland, the Secretary of Transportation, and numerous other important political leaders.
The Washington Post’s Steve Pearlstein published a lengthy diatribe against corporate profits yesterday. Or at least it was against firms wanting to earn profits now in the current quarter rather than some time period later on.
Downsizing Government has a new tool allowing readers to chart spending for more than 500 federal agencies with the click of a mouse. It’s pretty cool. Hopefully it will help citizens, reporters, and policymakers understand how the budget has grown to a colossal $3.5 trillion a year.
With Congress reconvening, members will soon be battling over discretionary-spending levels for fiscal year 2014, which begins October 1. They will decide whether to abide by current federal budget caps, which are designed to keep discretionary spending roughly flat over the next few years. The problem is that many lawmakers have become so used to rising budgets that a spending freeze seems impossibly tight-fisted to them.