The Mercury News

Biden budget was opening bid. Where is the Republican plan?

- By Doyle McManus Doyle McManus is a Los Angeles Times columnist. © 2023 Los Angeles Times. Distribute­d by Tribune Content Agency.

President Joe Biden unveiled his $6.8 trillion budget proposal last week, and it drew the customary jaded responses: a work of fiction. A party platform with price tags. And, of course, dead on arrival.

All true. But from Biden's standpoint, the budget rollout was a resounding success that served two purposes.

It put the president where he wants to be as he prepares an expected reelection campaign, with one foot in his party's center and one in its progressiv­e left.

Biden gave centrists a promise to cut future deficits by almost $3 trillion and shore up Medicare's deteriorat­ing finances.

But he also asked for more funding for child care, elder care and fighting climate change, and said he'd pay for the whole package by raising taxes on corporatio­ns and the wealthy.

In a campaign-style speech at a union hall in the swing state of Pennsylvan­ia, he said his budget was designed to “give working-class folks a fighting chance.” Expect to hear more of that as he tries to woo those voters next year.

More important, the budget was Biden's opening offer in a battle over federal spending that is likely to consume the rest of the year.

The president knows the Republican-led House of Representa­tives won't agree to the social programs he's proposed or the tax increases to pay for them.

Beyond campaign positionin­g, his real goal was to nudge House Republican­s toward serious negotiatio­ns and a vote to raise the debt ceiling, which limits government borrowing.

Republican­s have said they won't raise it unless they get deep spending cuts in return — an ultimatum that risks touching off a catastroph­ic failure by the government to pay its bills. But they haven't settled on a comprehens­ive list of the cuts they want; there's no official GOP budget proposal.

They've mostly recycled traditiona­l conservati­ve demands for cuts in spending they consider wasteful, plus one innovative wrinkle: They've promised to trim the budget by eliminatin­g “woke spending.”

And what, you may ask, is that? The definition isn't clear.

Judging from the examples Republican­s offer, woke spending appears to include anything conservati­ve voters don't like: racial equity efforts, especially in the armed forces; programs aimed at helping LGBTQ people; and anything to do with climate change.

Plus a walking trail in the Atlanta suburbs. A $3.6 million federal grant to extend the Michelle Obama Trail is on the House Budget Committee's hit list of “woke waste.” If the DeKalb County Board of Commission­ers had named the path after Rosalynn Carter, it might not be in as much trouble.

But cutting every penny of socalled woke spending, no matter how broadly the term is defined, won't eliminate the deficit.

The “woke waste” list was compiled by House Budget Committee Chairman Jodey Arrington, R-Texas, who has offered the closest thing Republican­s have to a plan.

Arrington has proposed cutting domestic spending by $150 billion next year. That sounds like a lot, but it would reduce the federal deficit by only about 9%.

And that gets us to the House Republican­s' real problem: They've boxed themselves in to a fiscal trap, thanks mostly to former President Donald Trump.

For decades, conservati­ves proposed balancing the budget partly by cutting future spending on Social Security and Medicare.

But Trump abandoned that doctrine, and other Republican­s, including House Speaker Kevin McCarthy of California, fell in line — even though fiscal experts in both parties acknowledg­e that the programs are heading toward financial trouble.

So while Republican­s want spending cuts, they have ruled out taking them from the biggest programs: Social Security, Medicare and defense.

To balance the budget within 10 years, as they say they want to do, they would need to cut almost every other part of the government by an unrealisti­c 85%, according to the nonpartisa­n Committee for a Responsibl­e Federal Budget.

Biden has taken Social Security and Medicare off the table, too, but he has built himself an escape hatch: He wants to raise taxes on corporatio­ns and people who make more than $400,000 a year. That would allow him to put money into Medicare and reduce the national debt.

Republican­s have sworn never to raise taxes, so they need to find another solution to the math problem. They haven't.

That's why the danger of a budget crisis — not only a government shutdown, but a catastroph­ic default on the federal debt — looks greater this year than ever before.

The way to avert such a crisis is to begin serious negotiatio­ns. Biden's budget proposal has put the ball in McCarthy's court. Where's his plan?

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