Money talk makes headlines

Richard Fulton

Money is in the news this week, as if it isn’t in the news every week.

Last week, the news piled up concerning the obscene amounts of money already being raised to fight for the presidency.

This week’s first burst of money information is the explosion of bonus money being showered on Wall Street financial institution high rollers.

Seems these bonuses added up to $28.5 billion for 2014. This on top of huge wages.

Seems the institutions that cheated their way to the brink of disaster for the American economy are making large profits these days — especially those large banks.

Even after paying billions in fines for their wrong-doing, profits are high.

Robert Reich, the well known economist reported: “That sum is double the combined annual income of the more than 1 million American full-time minimum wage workers.”

To remedy this imbalance, the Republicans, who control Congress now, have refused to increase the minimum wage and have issued this week their budget plan for the next 10 years.

Although they want to reform the tax codes, they say they do not want to raise any taxes. It should be noted, however, that their 10-year plan does quietly drop $900 billion in breaks for business research and development.

The rub of the budget plan is to balance the budget in 10 years.

How?

By repealing Obamacare and getting rid of restrictions passed on Wall Street after the 2008 economic disaster caused, enlarge part, by that same Wall Street.

President Obama’s 10-year plan for the budget would increase taxes on corporations, the wealthy, and, interestingly, smokers, to the tune of $5 trillion.

The more pressing budget issue is, of course, the coming fiscal year which begins Oct. 1.

The process is one in which a budget bill is passed with an overview of the budget plan, mostly setting broad spending goals. Then the hard work begins in passing specific spending bills.

You will remember that the 2015 (ending this coming September) spending bill for Homeland Security was just passed by Congress.

They have a hard time meeting deadlines. They will again this year, count on it.

The current budget fight will center upon the health care issues and welfare spending in juxtaposition to defense spending.

Remember, defense spending takes more than 50 percent of all the discretionary spending available to Congress.

Politicians and others will try to disguise this by lumping the discretionary budget with entitlement programs that are self-financing.

Things like Medicare, Social Security and the separately funded highway fund.

Keep an eye on the process.

In 2011, Congress passed a law limiting the amount of money that can be spent on defense and other items (the so called sequestration law).

The defense limit is supposed to be $523 billion. Obama has requested $561 billion — breaking the legal limit.

Budget balancing Republicans want to stick with Obama’s figures, but so called “War Hawk” Republicans want to cheat on the budget by increasing monies for “war” spending (which is outside the law’s budget) by up to $90 billion.

In short, there are lots of complex battles on spending coming in Washington.

And not all of the battles are between Democrats and Republicans.

As we have already seen, Republican splits can freeze decision making in Washington. And all Democrats don’t necessarily agree with Obama either.

There will be much more on money fights in the weeks and months to come.