Sessions: “No confidence” Taxmageddon will get addressed before election

posted at 10:41 am on June 7, 2012 by Ed Morrissey

Earlier today, I participated in a conference call with Senator Jeff Sessions (R-AL), ranking member of the Senate Budget Committee, to discuss a wide range of issues relating to spending at the federal level.  The new agriculture bill will shortly hit the floor, which has already drawn praise and fire over changes to subsidy programs.  Sessions reminded the journalists on the call that the bill mainly consists of nutrition programs, which comprise about 80% of the overall cost of the bill, including food-stamp programs that continue to grow.

During the Q&A period after Sesssions’ opening statement, I asked about Taxmageddon and whether an early resolution might be on the horizon.  Sessions had already confirmed that Democrats have taken action to break last year’s Budget Control Act to get more spending into the budget (about $14 billion), and that the sequestrations inordinately impact the Pentagon (nearly $1 trillion in two phases of cuts over 10 years) while leaving Medicaid, Social Security, and the food-stamp entitlement programs alone, even though the long-term issues with the budget come from entitlement spending rather than defense.  Sessions said he’d much rather see a solution “sooner rather than later,” in order to give businesses the certainty they need for investment decisions. Based on President Obama’s own statements, Sessions told us, “we’re not talking about a major disagreement” on tax rates anyway.

However, Sessions also said that he had “no confidence” that Congress would resolve the issue quickly, based on his discussions on Capitol Hill.  Instead, we are probably going to see a bill dropped in the post-election session of Congress, “written in secret” and rushed to the floors of the House and Senate, under extraordinary pressure “to avoid economic disaster.”  Even Bill Clinton understood the necessity of extending the tax rates, Session argued, and lamented that Congress would follow its usual pattern of waiting until “late December” to get the job done.

If that’s true, then we can expect to see investors to express “no confidence” in the American economy.  Without knowing what the tax policy next year will be, they will simply find other uses for their capital, and we’ll end up with the same stagnation we’re already experiencing all the way to winter — or perhaps worse.


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Just another reason why Urkel needs to be shipped back to Chicago permanently.

ICanSeeNovFromMyHouse on June 7, 2012 at 10:45 AM

…it won’t be addressed after the election either!

KOOLAID2 on June 7, 2012 at 10:45 AM

You know who to blame. And it’s not Bush.

The Rogue Tomato on June 7, 2012 at 10:45 AM

Senator Jeff Sessions (R-AL), ranking member of the Senate Budget Committee

The Senate has a Budget Committee? Who knew?

Bitter Clinger on June 7, 2012 at 10:46 AM

I love it when Congresscritters sound so helpless to do anything until the monolithic body of “Congress” introduces a secret bill at the last minute.

Why not nut up, and pt up? Force the issue. This is an election year, stand up and demand this be addressed now. The country couldn’t wait to get useless stimulus bills or ObamaCare, why does a massive tax hike not cause the same amount of alarm?

Neo on June 7, 2012 at 10:48 AM

Senator Jeff Sessions (R-AL), ranking member of the Senate Budget Committee

_______________________________________________

Yup, another oxymoron, to add to, among others

Jumbo shrimp
Open secret
Pretty ugly
Found missing
Freezer burn
Same difference
and unbiased opinion….

ICanSeeNovFromMyHouse on June 7, 2012 at 10:50 AM

After Obama loses in November, he’ll be less flexible. He’s going to be like a crying 3 year old in the toy aisle screaming and kicking with snot flying while he throws his tantrum.

He’s going to do everything in his power to push his agenda in whatever way he can during that lame duck period. And part of that agenda after the election will be to “punish” Americans for not voting him back into office.

Bank on it.

ButterflyDragon on June 7, 2012 at 10:51 AM

Why not nut up, and pt up? Force the issue. This is an election year, stand up and demand this be addressed now. The country couldn’t wait to get useless stimulus bills or ObamaCare, why does a massive tax hike not cause the same amount of alarm?

Neo on June 7, 2012 at 10:48 AM

I’ve always believed that Obama would love to see all the Bush tax cuts expire if he thought he could get re-elected without extending them. The real money (to be spent by SCOAMF) in tax increases comes from the middle class.

Bitter Clinger on June 7, 2012 at 10:52 AM

At least the nation’s REAL priorities will be taken care of:

1) Fund-raising
2) Golf

What else do we really need to survive?

NoDonkey on June 7, 2012 at 10:52 AM

ButterflyDragon on June 7, 2012 at 10:51 AM

Good luck to him on that. Even if by some miracle the Democrats take back the House and keep the Senate. even the Democrats aren’t going to commit political suicide by backing any wacky proposal of his.

And the agency heads are going to be looking to keep their jobs – he can issue all of the executive orders he wants, good luck getting speedy compliance.

He loses in November, he’s for all intents and purposes, done.

NoDonkey on June 7, 2012 at 10:55 AM

I said earlier we would need 5 2010′s to get Congress to do it’s job. I revise that to 10,000,000,000. SINGLE TERMS NAOW!!!

nobar on June 7, 2012 at 10:56 AM

Based on President Obama’s own statements, Sessions told us, “we’re not talking about a major disagreement” on tax rates anyway.

IMO Mr. Sessions putting stock in what the President says is the bigger story here.

txhsmom on June 7, 2012 at 11:01 AM

Odds that the politicians will make a major change to fiscal policy before the November elections: Zero. Slightly better odds of something (probably another 6-month continuing resolution) being passed after the new Congress comes in is better. We are anticipating the real changes will come next year, when the politicians will have about a 10-month window to make major changes before the 2014 election cycle begins. We expect tax increases and spending cuts.

As for business capital investment, while tax policies are a factor, the overriding influence is the state of economic growth (or lack of growth). Basically, if economic activity picks up, business will invest.

TouchdownBuddha on June 7, 2012 at 11:03 AM

ask him about the AMT patch for 2012 next time you have him dude. that is effecting people NOW, not next year.

t8stlikchkn on June 7, 2012 at 11:13 AM

TDBuddha – No they will invest when they are no longer concerned about massive increases in their health care bill via PPACA as well as the EPA making their investments worthless with some environmental whacko scheme. Tax rates are important no doubt, and probably really hit the small shops. But regulatory creep is what has kept business money out of the game. And if Obama wins, it will stay out. Once he loses and they get some evidence of some sanity in the federal regulatory world, the money will come.

Zomcon JEM on June 7, 2012 at 11:16 AM

The Senate has a Budget Committee? Who knew?

Bitter Clinger on June 7, 2012 at 10:46 AM

DEFINITION:

ox·y·mo·ron/ˌäksəˈmôrˌän/
Noun:
A figure of speech in which apparently contradictory terms appear in conjunction (e.g., Senate Budget Committee).

landlines on June 7, 2012 at 11:20 AM

Expect the stock market to crash and burn with everyone selling every stock they own to avoid the increase in cap gains.

Kissmygrits on June 7, 2012 at 11:48 AM

Joy.

I can hardly wait to see what my current employer’s tax software does for the first paycheck in January.

As it is, with everything set to expire Dec 31, I’m looking at another $60 a *week* in tax withholding, between the return of SS/MC payments to their original amount (which I wouldn’t mind so much if thought there was a hope in heck that I’d ever see any of it (I’m only 51)), the reinstatement of the marriage penalty, the child tax credit being halved, and the rate on the first $15K going back to 15% from 10%.

I sooo want to go back to the original tax form from 1913. It was easy to fill out, no massive loop holes, and I’d have paid less overall, without worrying about how my kids getting older was going to suddenly cost me thousands a year to the Fed.

So as it now stands, no one will do anything until January, and then it will be a costly mess to try and fix all the damage that could have been avoided if the Congress, [and that includes YOU, Harry Reid (*spit*)], would just do their damn job!

LibraryGryffon on June 7, 2012 at 12:00 PM

Yep,
Do nothing and cost a bunch of money for businesses as they prepare to hand the “new rules” and then change them and cost more money to hand the “old new rules” again.

Brick through the window economics.

ProfShadow on June 7, 2012 at 12:06 PM

the bill mainly consists of nutrition programs, which comprise about 80% of the overall cost of the bill, including food-stamp programs that continue to grow.

So can you still spend food stamps on foods the government has decided are unhealthy?

And if so, why?

M.O. says that stores in poor neighborhoods only sell prepackaged junk food. If food stamps could only be exchanged for fruit and vegetables… what kind of stores do you think you’d next to Welfare tenements then?

logis on June 7, 2012 at 12:14 PM

So can you still spend food stamps on foods the government has decided are unhealthy?

And if so, why?

M.O. says that stores in poor neighborhoods only sell prepackaged junk food. If food stamps could only be exchanged for fruit and vegetables… what kind of stores do you think you’d next to Welfare tenements then?

logis on June 7, 2012 at 12:14 PM

No, he means GROW as in “adding Millions more people to the rolls”
of those who need assistance to get the basic 2000 calories a day.

And I don’t know about where you live, but the new trend in ‘Welfare Tenements’ is to disperse the 8A housing people all over the city and suburbs.

Our city threw out cash paying tenants of a decent apt building just to move 8A people IN!

Mostly its because they have this ga-ga fixation that DownTown is hip and trendy or something….

As is expected, crime is now ALL OVER the city…

orbitalair on June 7, 2012 at 1:14 PM

Obama wants to destroy the economy and eliminate the middle class.

dogsoldier on June 7, 2012 at 1:59 PM

Maybe Senator Sessions could STFU for just a moment and explain — again — for us all why, precisely, he voted to confirm the astonishing a$$ clown Eric Holder as our Attorney General.

This Douche-Royale couldn’t argue his way out of a parking ticket, and Sessions voted to approve him as the top government attorney, in charge of the United States Department of Justice?

WTF doesn’t even begin to say it.

Jaibones on June 7, 2012 at 10:28 PM