THE FACE IN THE MIRROR:

Republicans Do Strategy, With an Eye on Politics (SHERYL GAY STOLBERG, 2/02/04, NY Times)

In his public remarks, Mr. Bush made scant, if any, reference to his legislative failures on Capitol Hill, including the energy and the medical liability bills, which passed the House last year but failed in the Senate. Before the speech, Senator Rick Santorum of Pennsylvania, who as chairman of the Senate Republican Conference was a host of the retreat, told reporters that the leadership had concluded that the bills would have to be rewritten to pass the Senate.

Instead of pressing forward with broad malpractice law changes, Republicans now plan on using what Robert Stevenson, a spokesman for Bill Frist of Tennessee, the Senate majority leader, called a "rifle shot" approach. This approach will focus on narrower issues, for example the difficulty obstetricians face in obtaining malpractice insurance.

On the energy bill, the Republicans' strategy is less clear. Some lawmakers have said in recent days that they might attach parts of the bill to pending highway legislation, which could come before the Senate as early as Monday.

"I think, clearly, everyone in the energy debate now understands that the bill is too big, has too much money in it," Mr. Santorum said. "Too many things were thrown in at the last minute that do not have the kind of broad support that can pass the Senate."

He said the cost of the $31 billion bill, which includes hefty tax breaks for businesses, would have to be reduced, especially given Republicans' concerns about fiscal responsibility. The issue of the deficit loomed large at the conference, with a number of Republicans saying Mr. Bush's plan to cut it in half within five years does not go far enough.

"I'm talking to people who believe that cutting it in half in five years is a worthy goal," Representative Steve King, Republican of Iowa, said in an interview before the retreat. "I believe getting the budget balanced in five years is a worthy goal. We should have more discipline than we have shown."

Good to see Republican legislators and the president recognizing that they are part of the problem too, when it comes to spending. They should take advantage of the mood though to put in place some Gramm-Rudman type spending caps and to get the ball rolling on a balanced budget/line item veto amendment again.

MORE:
Bush to Back Off Some Initiatives for Budget Plan (ROBERT PEAR and EDMUND L. ANDREWS, 2/01/04, NY Times)

Administration officials said Mr. Bush would not insist on his earlier proposal to overhaul Medicaid, would not push for a big expansion of retirement savings accounts and would not back tax incentives for energy production that he supported last year.

In addition, they said, Mr. Bush will oppose extending a temporary tax break that greatly accelerates the rate at which businesses can depreciate new equipment. The tax provision was enacted in 2002 to stimulate the economy and manufacturers want to retain it. At the same time, the White House is gearing up to oppose Republican plans in Congress for highway spending that far exceed what Mr. Bush wants.

Under fire from Republicans alarmed at the growth of the federal budget in recent years, Mr. Bush called Saturday for new statutory limits on spending.

Deficits, Fruit Flies and the Beltway (JOHN KASICH, 2/01/04, NY Times)

[I] have a few things I would like to say to both sides. To my Republican friends: please don't argue that deficit spending and big government don't matter. They are a claim on future income either through higher taxes, or inflation and higher interest rates. And to my Democratic friends: deficits are not caused by taxes being too low, but by spending being too high. Your solution of raising taxes will lead only to slower economic growth and even more spending in the future. I also have a few suggestions for my former colleagues on what needs to be done:

• Reduce government bureaucracy, shrink the size of the federal work force by 2 percent to 3 percent, and trim overhead expenses like travel and utilities.

• Eliminate corporate subsidies for ethanol and other programs for well-connected businesses.

• Cut ineffective foreign aid programs that put money into the hands of corrupt and inept governments.

• Close unnecessary military bases. Modernize and privatize Pentagon personnel operations where appropriate.

• Curb the skyrocketing growth of health care spending by putting unrestricted and robust Medical Savings Accounts into effect and reducing the number of frivolous lawsuits.

• Scale back the bloated farm program.

• Cut the pork out of the highway bill. Better yet, return the program to the states and let them manage it.

• Auction surplus federal assets to the highest bidder.

Posted by Orrin Judd at February 1, 2004 10:08 AM