WHY Kline Likes Budget Deal : More Defense, More Oil, More For-profit Student Loans

Michele Bachmann (R-MN-06), Steve King (R-IA-04), Jim Jordan (R-OH-04) and others sent a letter to Speaker John Boehner (R-OH-07) as the Ryan-Murray budget guidelines were being finalized :

What has become clear is that Democrats are not interested in solving the problems created by the sequester: they are only interested in using the threat of the cuts as leverage to increase spending across the board, to increase our national debt, and to raise taxes and fees. Or worse, they are interested in using feigned concern over national defense in order to distract attention from the disaster that is Obamacare.

OK … so the problem is the Democrats who want more spending.

So, why in the world would John Kline (R-MN-02) ever vote for the resolution ?

There are always a few who you could never get it good enough,” Republican Rep. John Kline said, “But by and large, I think people will be pleased.” “I think most of us on our side of the aisle were hoping early on for a much bigger deal, bigger reform in entitlement spending,” Kline said. “Given the climate that we’re in and everything that is happening, I think Paul Ryan did an excellent job, he managed to hit some very key points that are very important to a lot of Americans and certainly to a lot of Republicans. He did it without a tax increase; he did it with some long-term deficit reduction. I just think he did a really fine job.”

OK … so who are the “people” that “will be pleased” that this was accomplished “without a tax increase” ?

How about the Pentagon and government defense contractors ?
Think there happy ?
In 2014, the Budget Control Act’s sequester would make cuts solely to the defense budget. This deal spreads the pain to other government sectors, and splits the cuts in 2014 evenly between defense and spending. Over the next three years, the defense sector will get more than half a trillion in spending every year than would have occurred under the Budget Control Act.

How about “big oil” ?
Think there happy ?
The legislation allows for the development of oil and gas reserves that cross national boundaries as proposed in the U.S.-Mexico Transboundary Hydrocarbons Agreement. U.S. companies will be allowed to partner with Petróleos Mexicanos (Pemex), Mexico’s state-owned oil company to open up vast new territories in the western Gulf of Mexico for oil and gas drilling (1.5 million acres, an area that may hold 172 million barrels of oil and 304 billion cubic feet of natural gas, according to the Bureau of Ocean Energy Management.)
BTW … the International Energy Agency (IEA) calculates that the United States will stride past Saudi Arabia and Russia to become the world’s top oil producer by 2016.

How about for-profit educational loan-servicing companies ?
Think there happy ?
The resolution would end a program that set aside a portion of the Education Department’s loan-servicing contracts for nonprofit lenders that The Chronicle of Higher Education describes as “bad and potentially fatal news for 33 nonprofit lenders”.

While some may be happy, the sequester remains in effect for this year and will produce $16 billion in savings in 2014 alone. While the budget deal would spend more over the next two years—but it will take 10 years to make up for this spending … which satisfies another of Congressman Kline’s goals as it was done “without a tax increase”

Ah, what a deal … how long should we go on without addressing the “tax” aka “revenue” side of the budget equation ?

So, yes, Congressman Kline said YES to the deal … Congresswoman Bachmann said “YES” to bashing Democrats and NO to the deal …. And for those interested “Representative” Erik Paulsen (R-MN-03) also voted YES … of course that was after Advanced Medical Technology Association (AdvaMed) issued a press release :
AdvaMed commends Chairmen Patty Murray (D-WA) and Paul Ryan (R-WI) and the other members of the Senate/House budget negotiation committee for their work in crafting a bipartisan budget agreement which replaces the sequester, allows FDA to access the full amount of user fees paid by industry for FYs 2014 and 2015, and calls for repeal of the medical device tax.
OK … repeal medical device tax guarantees Representative Paulsen’s YES vote.

It seems odd though that the Bachman/King/Jordan letter said the problem was the Democrats yet, they voted overwhelmingly to support Paul Ryan’s proposal … maybe this game is more about “bashing Democrats” and “protecting interests” than about real fiscal management.
It seems that Representative Kline is just accepting the deal, but could you imagine how “happy” he would have been if he also got “reform in entitlement spending” ? That’s why he is running for another term … to nail down that “entitlement spending”.

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