So yesterday the Senate announced they came up with a deal to raise spending caps. It would include $160+ Billion in more Defense spending, and $130+ Billion more in Domestic spending. If this goes through it would raise the yearly debt to $1.1-1.3 Trillion for 2019. This is Obama level over spending. This is not draining the swamp, this is raising the water level and expanding the swamp.
The whole idea between lowering taxes was to increase revenue to pay down the debt, along with spending cuts, and then Senate Leader Mitch McConnell basically bent over for Senator Chuck Schumer and gave in. Just 3 weeks ago the Republicans finally stood strong and the Dems took the blame for the shutdown for the first time in my memory, but now McConnell basically caves and blows up the deficit in the process.
Now you may ask why the stock market graph above. Well when it was announced yesterday that the Senate had a deal, and what the deal was the Stock Market was at 25,207, approximately 26 hours later at the time of this writing the Dow is down over 800 points and I feel it is a direct cause to this deal, and I will explain why. To cover this additional debt, the Fed is going to have to sell more bonds, to sell more bonds, they are going to have to give a bigger return, so interest rates go up, which also drives up inflation, which makes operating costs higher, thereby profits drop, and along with it goes the stock market.
So what needs to happen? First off the Republicans, that are supposed to be the party of being fiscally responsible, need to stand up and vote no to raising these debt ceilings on Domestic spending. Listening to Chuck Schumer yesterday rattling off all the programs and how many billions of dollars would go into each was making my skin crawl. The longer he went on, and listing the Senator’s programs that were getting paid for was almost Obama like is how all these programs would help people, when in reality it was just more ways to get people dependent on the government and not on themselves.
Then you have the Nancy Pelosi stunt of her 8 hour ramble in the House talking exclusively about illegals. She says she is going to vote no on the budget deal until Speaker Paul Ryan says he will give the same DACA vote promise that Mitch McConnell in the Senate. Only problem with that, Ryan has made that promise multiple times. Now you have the Freedom Caucus of the House Republicans who state they aren’t going to vote for raising the spending caps, and I commend them for that, and if the Democrats aren’t going to vote for it for DACA, then it may not pass the House, so we may have another shut down, and honestly I am perfectly fine with that.
I think the government should shut down, and stayed shut down until 3 things happen:
First they have to actually have a budget, not a Continuing Resolution, not a short term spending deal, but an actual budget. One that has spending cuts where they can be done, and I am sure there are plenty that can be cut. You don’t need high paid accountants to come up with ways to do it. Get some couples who sit at home and work on their actual budget. Because we live by the motto, if we can’t afford to spend it, we don’t spend it. Why can’t the government live the same way? They got us into the $20 Trillion mess, and now they just want to add more to it. Plus I already know what the narrative will be in 2020 if this does not get worked out. “It was the tax cut that added $4 more Trillion to the debt under the Trump Administration, and if we don’t raise taxes on corporations it will only get worse in his second term.” It is not the tax cuts, it is the out of control spending!
Second, get immigration reform done. DACA can be reworked, but needs some tweeks. If DACA recipients are going to get a path to citizenship they, like legal immigrants, cannot take any money from federal government. No Welfare, Medicaid, Medicare, etc. To make up for any money they have made tax free, they will be taxed as they have 0 dependents, with no need to file a return for at least 10 years, to start covering some of the taxes they did not pay before, but also as part of the fine for being here illegally. You also appropriate all the money for the wall, end chain migration (outside of spouse and children). You end the Diversity Lottery and start doing merit based immigration. Also if are going to allow 1.8 Million DACA recipients to stay, then you cut the yearly immigration by at least 200,000 over the next 9 years so we are staying at 1,000,000 per year on average. You also force employers to use e-verify and pay substantial fees if you hire an illegal. Pass Kate’s Law and finally end any funding for sanctuary cities or states.
Finally, you bring to the floor of the House and Senate a Balance Budget Amendment, and make the personal tax rates permanent.
Force the Congress to do their job. Shut the government down in the meantime to make sure it is done. So instead of them putting things off for a couple weeks, and then put things off for a couple more weeks, you force them to actually work and get things done!
Comments as always are welcome.