The “omnibus” budget for the next year is out. Here are some of the winners and losers.
With a Republican Congress, every budget battle is about ratcheting down the things our government does to make our lives better. Every budget battle is a defensive action, with Democrats fighting to keep things that help the public for another year or two. Republicans fight for tax cuts for the rich and corporations to defund government. Then they can claim that government doesn’t have any money, so we need to cut budgets. (Note that almost all corporate shareholders are largely the same rich people, so corporate tax cuts are really just tax cuts for the rich.)
What We The People Get
This time We the People “get to keep” tax incentives for wind and solar for another five years. The Earned Income Tax Credit (EITC) (for low income people with income from work), Child Tax Credit (CTC) (for people who have children), American Opportunity Tax Credit (AOTC) (for sending kids to college) were actually made permanent. We get to keep providing health care for 9/11 responders who got sick from helping at the World Trade Center site after the 2001 terrorist attack — all of which Republicans tried to strip out.
Making those tax credits permanent is a big win. These help lift 24 million working-class families.
The “Cadillac Tax” that was set up as a disincentive to employers to offer high-quality health insurance coverage is delayed for two years. This means people will be able to get better health insurance with lower co-pays and deductibles. (See the post “What Is This ‘Cadillac Tax’ Health Insurance Thingy?” for details.)
Because of all the tax cuts, the country’s public schools are generally underfunded to the point where teachers are using their own money to buy books for the students and supplies for the classrooms. The budget lets teachers forced to do this at least have a tax deduction from their income.
What We The People Stopped
Republicans were fighting to block the “fiduciary rule” that requires financial advisers to give advice that is in the interest of their clients, instead of tricking their customers just to make money for themselves — or at least disclose to customers if they have a conflict of interest. They didn’t get that rule blocked, so financial advisors cannot continue their fraud-based business model.
Republicans were trying to chip away at the Dodd-Frank bank-regulating rules, so Wall Street can expand its fraud-based business model. They were trying to strip power from the Consumer Financial Protection Bureau, and cut the ability of the Financial Stability Oversight Council to do its job. They didn’t get those.
Republicans Got Tax Cuts To Further Defund Government And Enrich Billionaires
Republicans fought for more corporate tax cuts and got $650 billion, including the “active finance exception” for multinational financial corporations and what Citizens for Tax Justice (CTJ) calls “the much-abused research credit.” CTJ says these “are nothing but ineffective giveaways to the nation’s wealthiest corporations.” CTJ concludes, “As a whole, this tax package is mostly a lobbyist-wrapped Christmas present for our nation’s biggest corporations.”
Republicans also won tax breaks for special interests including NASCAR, horse racing and film and television productions.
Having won another $650 billion of government defunding while handing $650 billion to big corporations, Republicans will soon come back and complain about “deficits” and demand a new round of cuts in the things our government does for us.
Oil Companies Get The Oil Export Ban Lifted
But Republicans especially fought for lifting the ban on exporting U.S. oil. This was their highest priority.
This is a typical news reports on the budget deal: “By far the biggest win for Republicans, besides the extended tax cuts, is a measure that would lift a four-decade-long ban on exporting crude oil.”
Why is this a “win” for “Republicans?” Because oil companies wanted it, period. The Republican Party is nothing if not always, always in service to oil companies. A political party placed ending the oil export ban as their highest, highest, do-or-die priority. It does nothing for the public, the country, the climate, jobs or anyone or anything else except for the oil companies, and this is what the Republican Party laid itself down to get done.
This puts more oil on world markets, just after the Paris climate talks. The reasons oil companies wanted this so much are:
1) In the short term, this gets some of the glut of oil out of the U.S., thereby raising gas and other prices within the U.S. (This was the real goal of the Keystone pipeline. Canadian oil is already coming into the U.S., the pipeline would take it to Gulf ports so it can be gotten out of the U.S., thereby reducing the glut and raising U.S. gas and other prices.)
2) The Paris climate agreement is a signal that the era of fossil fuel is ending. A lot of the oil that is still in the ground is going to have to stay there. The question is whose oil will have to stay in the ground, and producers are trying to get their oil out of the ground as fast as they can. Producers are now fighting with other producers to dump their oil before they are forced to stop. Saudi Arabia and OPEC are pumping oil as fast as they can. Lifting the U.S. oil export ban lets U.S. producers fight directly with them to get their own oil out of the ground first.
Democrats traded this in exchange for keeping tax incentives for wind and solar for another five years, and some of those other things We the People got to keep for a while longer.
P.S.: This Was Not Cool At All
By the way, the budget bill repeals a law requiring Country Of Origin Labels (COOL) on meats, because a corporate court decided We the People should not be allowed to know where the meat we purchase comes from. This cuts into the profits of giant meat producing corporations that are not U.S.-based.
For background on this see “Corporate Court Overrules U.S. Congress, Public.”