You wouldn’t spend $100 on a Broadway theater ticket unless you had some familiarly with the show. We do this as consumers because when making important financial decisions it is necessary to be informed. So why then are theatergoers/consumers, who are also voters, failing to ask incumbent candidates the most important question of this election: What policies will you pursue during Congress’s Lame Duck session?
In case you missed it, Congress adjourned over the weekend and will not return until after the election. The post-election Congressional session is called the ‘Lame Duck’ session. This is when, regardless of the election outcome, incumbents return to Congress for 36 days and vote on legislation which they failed to address during the regular congressional session. How important is this session?
The spending and tax bills which will be discussed account for roughly 4% of America’s Gross Domestic Product (GDP). Below is a quick outline of just some of the items being discussed:
Bush Tax Cuts – To Renew vs. To Expire
The Bush Tax Cuts are set to expire after several extensions. It’s unclear what position President Obama and the Democrats plan to take, while the Republicans will most likely vote against any tax increase/expiration. The tax cuts effect roughly 72% of the population. In FY2013 they are worth $221 billion dollars, providing tax payers with average savings of $1,765. Just think for a moment, how you would be affected with $1,765 less in your pocket?
Sequestration – A Tough Reality
Last summer, when Congress and President Obama failed to achieve a grand bargain on the debt ceiling, they left the American public with sequestration. This is a Congressional procedure where, if Congress failed to cut spending, a series of automatic spending cuts totaling more than $110 billion would be enacted. The Congress Budget Office estimates that this would slow American GDP growth down to .5% and throw us back into a recession.
The Debt Ceiling – America’s Cancer
Even though the debt ceiling does not need to be raised until spring, another debacle like the one last summer could do lasting damage to the America economy. Our debt is a cancer, and further inaction to get it under control could do lasting harm. Both the Bush Tax Cuts and Sequestration influence our debt situation, but it remains to be seen whether Congressional action will be a positive or a negative.
The 36 days that will make-up the 112th Congress’s Lame Duck Session is what Washington is gearing up for. Without the shadow of incumbency, or an election, legislators will need to address America’s pending fiscal problems. It’s a question worth asking every candidate on the campaign trail, and one often being ignored: What policies will you pursue during Congress’s Lame Duck session?
For more information on the Lame Duck Session please check out:
The Economist – July 14, 2012 edition – “The American Economy: Comeback Kid”
National Journal – July 2, 2012 edition – “Field Guide to the Lame Duck Session”
The Price of Politics by Bob Woodward, Available for purchase on amazon.com
Marquee Politics 