Bloomberg reports the House could vote as early as today on its $554 billion defense spending bill for fiscal year 2013.

House Speaker John Boehner reiterated his position that another increase in the debt ceiling must be combined with spending cuts. Roll Call has the details.

The Daily Caller reports the federal government has spent about $70 billion on “climate change activities” since 2008.

The Washington Post says Republicans want to reform the tax code next year.

The Wall Street Journal says leaders in Greece have said the country will stop paying its debts if the EU cuts off aid. The Washington Post looks at how continued strife in Europe  is affecting U.S. and world markets.

On the opinion pages: Matthew Philips argues the coming “fiscal cliff” will drive the U.S. back into recession.

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The Associated Press reports foreign holdings of U.S. debt are at an all-time high.

Despite a current ban on the practice, Politico reports lawmakers are still pushing for earmarks.

The Associated Press says the White House has threatened to veto the House FY 2013 defense appropriations bill since spending in it exceeds what was agreed to in last summer’s budget deal.

House Speaker John Boehner said Republicans would block any debt ceiling increase that  is not accompanied by spending cuts. Bloomberg,The Hill, The New York Times, Politico, Reuters, The Washington Post have the story.

According to The Hill, Speaker Boehner is also pushing for quick action on tax legislation. Meanwhile, according to Politico, former President Bill Clinton is advising lawmakers raise taxes across the board.

The Hill and The Washington Free Beacon says the Senate is poised to reject several different budget outlines on Wednesday. According to Politico, some moderates are frustrated with the Senate’s inability to pass a budget.  

The Hill, Politico and The Washington Post report the Senate has passed a House-supported bill to reauthorize the Export-Import Bank.

According to The New York Times, states are using funds from the housing settlement with banks to plug their budget gaps. Also on housing, Bloomberg says Fannie Mae and Freddie Mac may soon be allowed to forgive homeowners’ debts.

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Now $16 billion –instead of the $9 billion predicted in January—California’s deficit poses major problems for the state. While borrowing has yet to be impeded by a lack of confidence in the state’s ability to pay off its debt, the massive deficit means lawmakers must make more cuts than originally planned to control the growing debt. The problem is that California’s Governor Jerry Brown would rather increase taxes and cut less than needed to bring the deficit down.

In November a ballot initiative will determine if the state will raise sales taxes a quarter of a point, up to 7.5 percent, and raise the marginal income tax on the rich to 13.3 percent from the already-high 10 percent. Ranking dead last in The Chief Executive’s ranking of business-friendly states, it is unlikely that the new taxes in November will encourage more business to locate in California.

While the tax increases stand to raise $9 billion in the upcoming budget year, this still leaves the state $7 billion in debt. If it were not obvious before that California was not in aposition to tax its way out of this mess, the shortfall after raising taxesshould make it very apparent. The only real solution for California is the same solution for spending in Congress: cut spending and implement a plan for long-term deficit and debt reduction. Until a plan is put in place to keep deficits from reaching this size again, California can increase its taxes all it wants and still not find its way out of debt.BA

The Hill reports the House rejected a package of spending cuts on Tuesday. Meanwhile, The Washington Post reports a reauthorization of the Export-Import Bank will likely pass.

Yesterday, President Obama gave Congress a to do list. Bloomberg, The Hill and Politico have the details.

The Associated Press says House appropriations bills exempt defense and homeland security from spending cuts. The Hill says Republican appropriators have also opted not to offset disaster relief funding.

Bloomberg updates readers on the progress of Postal Service reform.

House Speaker John Boehner says the House will act to extend tax cuts before year’s end. The Hill has the details.

The Daily Caller looks at how much former presidents will receive from taxpayers next year. (Former President George W. Bush requested the most of any of the former commanders-in-chief.)

The Washington Free Beacon says Europeans are not really revolting against austerity. The New York Times examines how new spending would be paid for in European countries.

On the opinion pages: The Wall Street Journal says its time to eliminate duplicate job training programs.

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Politico looks at what Congress did (or didn’t do) this week.

Reuters says Republicans are looking to cut spending by repealing parts of Dodd-Frank.

General Services Administration officials testified in the Senate yesterday. The Washington Post has the details. The Washington Examiner says waste at GSA is more common than indicated.

According to The Hill, Republicans in the Senate may force a vote on the House-passed fiscal year 2013 budget resolution.

On Wednesday, the President issued a veto threat for appropriations bills that violates the Budget Control Act, the deficit deal passed by Congress last summer. The Hill, Politico and The Washington Post have the details.

The Hill also reports the House has passed a transportation reauthorization bill that will provide funding through September.

Bloomberg says the House will now turn to a small business tax bill. Bloomberg also examines the cost of tax expenditures.

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Politico reports the Senate Parliamentarian has ruled last year’s Budget Control Act does not mean the Senate cannot take up a budget resolution this year.

The Washington Post has more on the “over the top” GSA conference, funded by taxpayers.

The Wall Street Journal says the Defense Department is preparing to make large spending cuts.

According to Bloomberg, the worst may be over for revenue declines in state and local government.

On the opinion pages: The Wall Street Journal says Canada is more fiscally responsible than the U.S.

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The Associated Press reports the House will vote on, but likely vote down, a bipartisan budget plan that would balance the budget through a combination of tax increases and spending cuts.

With a short-term extension off the table in the House, Politico and Roll Call examine what is next for the transportation reauthorization bill.

The Washington Examiner looked at Senate debate over ending tax benefits for oil and gas companies.

Politico examines the revenue limits in the House Republicans’ fiscal year 2013 budget proposal. Bloomberg looks at the spending levels versus the overall size of the economy.

According to Bloomberg, European leaders believe the worst of the continent’s fiscal crisis is over.

On the opinion pages: Lawrence Goodman says foreign governments and businesses, and U.S. businesses, are becoming less willing to finance U.S. debt.

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Spending

Though not scored by an independent source, both budgets claim spending cuts over the long term. While the RSC Budget proposes cuts in discretionary spending to 2008 levels, the CPC budget finds major spending cuts in defense spending.

The RSC Budget cites “duplicative… or harmful programs” to be cut, to save taxdollars. Along with these cuts, the moratorium on earmarks currently in Congress is placed into law with the proposals passage. Savings of note in the RSC Budget include the elimination of certain federal agencies and by adopting the House Republican strategy to reform Medicare, Medicaid and Social Security. Agencies on the chopping block are the Corporation for Public Broadcasting, Economic Development Administration, the Legal Services Corporation, the National Endowment for the Arts and the National Labor Relations Board.

CPC points to defense cuts for both immediate and long-term savings. The immediate savings come from timely withdraw of troops from Iraq and Afghanistan, while other reductions would be made by ending the emergency contingency operations emergency supplemental funds and reduction of strategic capabilities, conventional forces, procurement and research and development programs. The CPC claims ending of the emergency contingency operations emergency supplemental funds, approximately $170 billion for FY 2012, over 10 years would accrue $1.8 trillion dollars in savings compared to current spending levels.

Taxes

While the RSC budget proposes no new taxes, it does propose reforming the tax code to a “simpler, flatter and fairer” tax code. The proposal would adopt a freeze on any scheduled tax increases during FY 2012, plans to reduce the corporate tax rate to 25% while eliminating loopholes, and eliminates the death/estate tax, the alternative minimum tax and investment tax on inflation. The proposal also sets out a plan to reform the current tax codeinto just 2 income brackets, 15% for individuals making $50,000 in taxable income or 25% for those making more than $50,000. ($100,000 for joint filers) No projection on the amount of revenue was given.

The CPC proposes multiple new avenues to increase revenue over time. While individual rates are changed to add 5 new tax brackets, ranging from 45% to 49%, on those making more than $1 million dollars a year, the proposal also allows Bush-era tax cuts to expire in Dec. 2012. They do extend the marriage relief credits and incentives for children, families and education provisions of those same cuts. The budget would rescind the upper income tax cuts made in December and reduce the rate at which itemized deductions can reduce tax liability to 28%. The budget also reforms the US corporate tax rate to include income earned overseas, introduces a tax on banks with more than $50 billion in assets, a financial speculation tax, and reinstates the superfund tax. Lastly the proposal  reshapes the estate tax to include a maximum rate of 65% on estates worth over $500 million dollars and a minimum of 45% on estates totaling $50 million. Overall, the CPC projects a net increase of $3.9 trillion in tax revenue over 10 years when compared to current levels.

Deficit Reduction

Both the RSC and CPC budgets propose to bring the federal deficit to zero over a period of less than 10 years. According to the RSC budget, surpluses begin to take effect in 2017 and top $125 billion in 2021. The CPC projects surpluses beginning in year 2021 with $30.7 billion.

The budget proposals from these groups differ greatly, to say the least. However both budgets display recognition from both parties, the need to reduce deficits and bring our national debt under control, highlighting the fact that our growing fiscal problems are not based upon party lines, but instead are a growing concern for all Americans.BA

2. The candidates are choosing their Secret Service code names. Why do they tell us? You’d think that should be secret. – Jay Leno

3. Political Cartoon: Cut Spending

4. “You know what’s kind of ironic? This will be the fourth St. Patrick’s Day of Obama’s presidency. He still hasn’t created a green job. What happened to those?” –Jay Leno

5. Political Cartoon: Gas PricesBA

CBS looks at how much the debt has increase over the last 10 years.

Bloomberg, The Hill, The Wall Street Journal and The Washington Post say the House Republicans’ budget will cut personal income tax rates. Meanwhile, Politico looks at how the budget will cut the debt.

According to The Hill, Republicans are crafting a bill aimed at lowering gas prices.

Politico reports Democrats will offer a bill to repeal some tax incentives for oil companies.

On the opinion pages: Michael Patrick Leahy says the U.S. must cut spending.

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