Feb 04 Budget Blogger Conference Call Notes

I just finished a BCC on President Obama's budget. Assistant Minority Whip Kevin McCarthy and Congressman Jim Jordan of Ohio's 4th District took questions after making brief opening statements.

Congressman Jordan started by saying that there's a very real need to reform the budgeting process by dropping the current baseline budgeting and switching to zero-based budgeting or ZBB. Congressman Jordan said that it was imperative to do this because spending has increased by 84 percent since President Obama was inaugurated.

I asked the first question, which was about what I'm dubbing the AIG Tax. Specifically, I asked whether either gentleman thought it was constitutional, citing the Equal Protection Clause as one constitutional protection. Both Congressman Jordan and Congressman McCarthy said that the AIG Tax likely would be struck down if it ever passed and was signed into law.

Rep. McCarthy then added that "this administration hasn't worried about the constitutionality" of legislation they were working on. Rep. McCarthy then cited several provisions in the health care legislation. Specifically, he cited the Louisiana Purchase, the Cornhusker Kickback and the individual mandates as not meeting constitutional muster.

Later, I asked about President Obama's spending freeze NEXT YEAR. I asked why people shouldn't demand that (a) the budget be cut, not just frozen and (b) the cuts come from the entire budget. Rep. Jordan said that we should definitely scrutinize President Obama's entire budget, not just 17 percent of it.

I said that it's important that we scrutinize the entire budget because it's insane to think that all the government overspending is contained in 17 percent of the budget. I said that it's important that we show Wall Street and the world that we're serious about getting our economic house in order.

On another note, the evidence I've seen since the budget was released suggests that Democrats are running away from this budget.

Comments welcome at LFR.