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The economic and political perils of Congressional gridlock

November 8, 2010

A month before the midterm election, the House had passed 400-plus pieces of legislation more than the Senate.

The disparity between the Capitol Hill bodies in passing bills already had led to pre-election ill-will among members. Back in October, many House members said they were infuriated by the slow pace of doing business in the Senate, where bills can be held up by filibuster and other rules.

Political-animals Well, Representatives, get ready to stay angry. Possibly for two more years.

With the Republican takeover of the lower body of Congress, House and Senate operational agendas will diverge not only in legislative process and style, but politically.

What will that mean? The incoming GOP House will likely keep passing more bills that go to the Senate to die.

And about the new Senate. The Democrats are nominally still in control and yes, some of the new members are more conservative. But don't expect 60 Senators get together, at least not regularly, to break up either party's filibusters.

These House and Senate scenarios, my friends, are the classic definition of gridlock.

Gridlock's pros and cons: While a Congress that can't or won't do much is theoretically a constituent's dream and already has somewhat bucked up Wall Street spirits, the reality is that gridlock is not necessarily good for America.

We're facing an economy that's just beginning to get back on track. Some of the improvement has come from federal spending. When that dries up, and similarly cash-strapped states can't or won't make up the difference, will our economy head down again?

And what about unemployment? Regardless of what political position you take on how to improve the business and work environment in this country, some type of legislation will be necessary.

So while just playing chicken might seem like a good strategy for 2012 campaigns, people have to live for the next two years and that will require that their federal lawmakers do their jobs. That means they must make some laws, not sit on their hands and bitch about the other party.

Lame-duck Congressional to-do list shrinks: We should get some idea of the working relationships in the lame-duck Congress scheduled to begin next week. But it will not be a complete picture.

Right now, the Democrats are still, ostensibly, in charge. That officially changes, as will Capitol Hill agendas, in January.

Realistically, in a few months the chances for action on a wide range of issues will diminish.

So what will happen in the month or so of the lame-duck session?

In the wake of the Democrats' Nov. 2 shellacking, many of that party's insiders say that the most they expect to see passed are a stop-gap spending measure and temporary extension of Bush-era tax cuts.

"I'm very pessimistic we'll get much done," a labor official familiar with lame-duck negotiations told The Hill newspaper. "Republicans will try to put off everything so they can claim credit for anything that passes at the beginning of the new Congress."

That's an understandable poltiical approach. But I keep hearing the phrase "be careful what you wish for" as the rejiggered Congress prepares to get back to work.

Rather than trying to score purely polical points, it might be wiser to work on good legislation that helps the country, with input from both sides.

Yeah, that sounds like crazy talk. But remember the other lesson of Nov. 2.

Voters nowadays are impatient and they're not afraid to make changes if they're unhappy with what legislators do or don't do.

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It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • I totally agree with you but how can I get the exact information about Alabama state tax brackets for 2010 taxes. I think e filing is the best method for state and federal tax filing.

  • “Regarding Congress Gridlock. I write songs of social commentary . The first song is regarding government procrastination- Pick Up The Trash . The second is entitled – The Economy Song
    Pick Up The Trash
    http://www .youtube.c om/watch?v =MNydQ2eQ8 MA
    The Economy Song
    http://www .orangetvf l.net/mick ey-carroll /they-did- the-wild-v ideo_3b4f1 5e27.html
    God bless our country
    Mickey Carroll
    http://www ,MickeyCarroll.com”

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