Let's Get Fiscal
If only politicians were as efficient with our dollars as they are in making radical changes under new leadership. Alas, this is America.
Anyway, now that House Speaker Kevin McCarthy has finally claimed victory following one of the most embarrassing votes in U.S. history, let's talk about some of the changes, wannabe-changes, and never-gonna-happen changes rolling around inside the halls of Congress. We talk monetary all the time, but today it's all about fiscal.
For starters, something actually bipartisan occurred. The House approved the creation of a new committee to keep a more watchful eye on China. A 365-65 vote created the "House Select Committee on the Strategic Competition Between the U.S. and the Chinese Communist Party."
Aside from having a comically long name, this committee had McCarthy sounding like he was reading lines straight from Washington's farewell address with a radical emphasis on the need for bipartisanship here, even under new leadership.
But what does this mean? Well, for starters, it's even more confirmation of the beef between the U.S. and China. A formalized committee will almost certainly lead to more resources being allocated to advance our standing against China. After reading yesterday's "Thought Banana," it's no secret as to why.
Further, the GOP wasted no time dishing out wild bills that sure do grab headlines but have about equal odds at passing as Snoop Dogg does taking a urine test.
Regardless, one that seems to have had Twitter especially up in arms last night is the alleged bill set to abolish the IRS and eliminate the federal income tax. Now, I'm as huge a fan of tax evasi-ahem, tax avoidance as much as the next guy, but removing the IRS just takes the fun out of it, you know?
Further, replacing income, corporate, gift, and other taxes with a national consumption tax might sound great on paper, but for an economy that lives and dies on consumer spending (70% of GDP), we might want to think a little harder on that one…for the sake of our portfolios.
Lastly, and the most important fiscal ongoing of the day, is the hot, red beef set to roast over the nation's debt limit. Already a touchy subject, with the GOP running the House (the chamber that holds the "Power of the Purse"), reducing the debt ceiling will be a driving economic factor until the next election cycle each time a deadline comes up.
Fiscal austerity in government seems like an oxymoron, but the GOP does tend to focus on this issue more heavily. You might want to add the word "sequestration" to your vocab, which describes legislatively-automated reductions in spending (and not a horse-riding sport), because imposing such a dynamic is sure to be at the top of McCarthy's and other Republican minds.
We'll keep you updated each time the government is about to go broke or hit a debt ceiling. Might be a lot, might be a little, but it's American politics, so, as always, literally anything can happen.
Ut laboriosam molestias dolorem quaerat nemo est at dolor. Inventore corporis id quos suscipit est animi. Quibusdam et quisquam dolore ipsa.
Autem culpa autem quos ullam non doloribus quam. Illo tempore expedita dignissimos deleniti consequatur nobis cupiditate. Quaerat ex iure nihil ut. Vel sapiente quae quas.
Quam accusamus ipsam dolores dolore alias quidem impedit quasi. Iure fugiat eum dolores. Culpa itaque dolorem et quas quos laborum ipsa. Quis facere rerum saepe quam. Et distinctio assumenda dolor libero nostrum. Ut corrupti qui ut nam est. Illo dolores veniam voluptas delectus culpa voluptatibus quidem voluptas.
Sit quibusdam dolores ut sit. Aut quia qui dolores veniam quasi tempore. Sed sint placeat recusandae sint velit et. Iste expedita aspernatur excepturi provident magnam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...