The U.S. House passed the so-called “Cut, Cap and Balance Act” yesterday on a mostly party-line 234 to 190 vote (roll call). Robert Greenstein of the Center on Budget and Policy Priorities summarized the key features of the proposal:

The plan would lock in cuts over the next ten years at least as severe as those in the [House Budget Committee Chairman Paul] Ryan budget plan that the House passed in April, by writing spending caps into law at the year-by-year levels of spending (as a share of GDP) the Ryan budget contains.

It also would hold the increase in the debt limit needed by August 2 hostage to approval by two-thirds of the House and the Senate of a constitutional amendment to require a balanced budget every year while effectively barring any increases in revenues.  The constitutional amendment would make all revenue-raising measures unconstitutional unless they secured a two-thirds supermajority in both the House and the Senate.

The “Cut, Cap & Balance” measure cites three constitutional balanced-budget amendments (H.J. Res 1, S.J. Res 10, and H.J. Res 56) and states that Congress must approve one of them or a similar measure before the debt limit can be raised.  All three of the cited proposals would require cuts deeper than those in the Ryan budget.  All three measures would establish a constitutional requirement that total federal expenditures may not exceed 18 percent of GDP, and all three would essentially require that the budget be balanced within the coming decade.

The Ryan plan, by contrast, does not reach balance until the 2030s, and its federal spending level is just below or modestly above 20 percent of GDP for most of the next two decades, equaling 20¾ percent of GDP in 2030 for example, according to the Congressional Budget Office.  The only budget that comes close to meeting the requirements of these constitutional amendments is the Republican Study Committee budget, which eliminates 70 percent of non-defense discretionary funding by 2021, contains deeper Medicare cuts than the Ryan budget, cuts Medicaid, food stamps, and Supplemental Security Income for the elderly and disabled poor in half by the end of the decade, and raises the Social Security retirement age to 70.

Iowa’s Republicans Tom Latham (IA-04) and Steve King (IA-05) both voted for “cut, cap and balance,” while Democrats Bruce Braley (IA-01), Dave Loebsack (IA-02) and Leonard Boswell (IA-03) voted against it. I recommend reading Greenstein’s whole analysis or this piece by Michael Linden and Michael Ettlinger to get a sense of how ludicrous this plan is. Severe spending cuts would not only hurt the most vulnerable Americans, they would drag down the whole economy. I doubt Republicans believe in this fiscal policy. When the U.S. economy was hurting in late 2001 and 2002, the GOP-controlled House passed big deficit spending to stimulate demand, with the support of a Republican president.

But I digress. Yesterday’s House vote was designed to give Republicans cover. Everyone knows “cut, cap and balance” could never clear the Senate. Even if it did, President Barack Obama would veto the bill.

This vote isn’t just about short-term political battles over the debt ceiling. It will be cited by both parties during next year’s campaigns in Iowa’s new third and fourth Congressional districts. As a preview of campaign rhetoric to come, I’ve posted comments from both sides after the jump. First, Latham makes the case for the bill and pledges not to vote for any debt ceiling increase “without passage of the major features outlined in the Cut, Cap and Balance Act.” Latham voted many times for unbalanced budgets and to raise the debt ceiling while Republicans controlled the House during George W. Bush’s presidency. He’s hoping those votes will slip down the memory hole.

Next, I posted a Democratic Congressional Campaign Committee press release charging that Latham just voted to “cut, cap and end Medicare.” An almost identical statement went out targeting King.

King didn’t send out a press release on yesterday’s vote, but he has stood with Republicans who demand huge spending cuts and no revenue increases as the price for raising the debt ceiling. After the jump, I posted a DCCC statement highlighting King’s previous votes to increase the debt ceiling. Both King and Latham stopped voting for debt ceiling hikes when Democrats had a House majority from 2007 through 2010.

Final note: two House Republicans who are running for president, Michele Bachmann and Ron Paul, voted against “cut, cap and balance” yesterday. Bachmann “said the bill does not go far enough to fundamentally restructure the way Washington spends money, and in particular does not go after ‘ObamaCare.'” Paul said “this Act cannot balance the budget under any plausible scenario,” because it’s “impossible” to do that without cutting defense spending, Medicare and Social Security.

The battle of the incumbents in Iowa’s third Congressional district will be one of the most closely-watched House races in the country in 2012. Yesterday Karl Rove’s 501(c)4 group Crossroads Grassroots Policy Strategies launched a television commercial targeting eight-term Democrat Leonard Boswell. Similar spots went up against nine other Democratic incumbents, part of a $20 million summer advertising campaign by Crossroads.

Meanwhile, local media have devoted heavy coverage to the reported break-in attempt at Boswell’s southern Iowa farm on Saturday night. The latest comments from Boswell, his wife Dody Boswell, and law enforcement officers are after the jump, along with the Crossroads ad and annotated transcript.

UPDATE: Law enforcement officers have arrested two suspects in the break-in. Details are at the end of this post, along with statements from Leonard and Dody Boswell.

If Barack Obama doesn’t want to be a one-term president, he has a funny way of showing it. I can’t imagine how the president could come out of the debt ceiling negotiations in a worse political position.  

Conventional wisdom says President Barack Obama would love to run against an “extreme” Republican candidate, such as Representative Michele Bachmann. With unemployment up again and likely to rise further as Obama tries to outdo Republicans on government spending cuts, I’m not convinced that a big campaign war chest will be enough to get the president re-elected.

Watching Bachmann’s solid introductory television commercial and highlights from her recent Iowa tour, I challenge those who write her off as “unelectable,” especially in this economy. Ad video, transcipt, analysis and more Bachmann campaign news are after the jump.

The U.S. House of Representatives failed to approve a presidential request to increase the debt ceiling yesterday. Members rejected a motion to suspend the rules and proceed with that bill by a 318 to 97 vote (roll call). Every House Republican present voted against raising the debt ceiling, including Tom Latham (IA-04) and Steve King (IA-05). Nearly half the Democratic caucus also voted against yesterday’s motion, including Dave Loebsack (IA-02) and Leonard Boswell (IA-03). House Minority Whip Steny Hoyer advised Democratic colleagues to reject what he described as a “political charade” aimed at producing fodder for campaign attack ads. Bruce Braley (IA-01) missed yesterday’s vote to attend a family funeral but released a statement saying he would have opposed raising the debt ceiling. I’ve posted his comments after the jump. Since last November’s election, Braley has consistently been talking like a deficit hawk.

The U.S. hit its current debt ceiling in mid-May. If Congress does not raise the limit by August 2, the federal government will not be able to pay all of its bills. Republican leaders are pushing for major domestic spending cuts as a condition for raising the borrowing limit. Naturally, austerity won’t apply to the military budget, and that’s fine with Boswell, Loebsack, Latham and King.

I believe Democrats are making a mistake by accepting Republican demands for strings attached to the debt ceiling hike. President Bill Clinton refused to make such negotiations part of a deal on raising the borrowing limit in 1995, saying he would not let Congressional Republicans use the occasion to “backdoor their budget proposals.”

King asserted yesterday that repealing the federal health insurance reform law would “save the taxpayers $2.6 trillion” and would be a good start toward finding spending cuts to offset the president’s debt request. I’ve posted his full statement after the jump. At this writing I have not seen official comments on the debt ceiling from Loebsack, Boswell or Latham. If those become available, I will update this post.

UPDATE: Latham’s statements on the debt ceiling are now after the jump.

A Republican-led filibuster blocked Senate consideration today of a bill that would end “tax breaks for the five largest oil companies: Exxon Mobil, Shell, BP, ConocoPhillips and Chevron.” Click here for more detail on tax breaks that would be eliminated. The 52 to 48 vote in favor of proceeding with the “Close Big Oil Tax Loopholes Act” failed because 60 votes are needed to overcome a filibuster. The roll call shows that Iowa’s Chuck Grassley voted against the motion to proceed, as did all but two Senate Republicans. Tom Harkin voted for considering the bill, as did all but three Democrats.

I’m all for ending oil company subsidies, but this bill was about optics rather than good energy policy. Andrew Restuccia wrote in The Hill,

Democrats’ pledge to continue pushing the bill signals that they view the effort as a winning political issue amid $4-a-gallon gas, soaring oil company profits and growing concern about the deficit. […]

Democrats say the bill would save $21 billion over the course of 10 years, savings that can be used to reduce the deficit at a time of increased belt-tightening.

Those talking points would be more convincing if party leaders had genuinely tried to end oil subsidies when Democrats controlled the U.S. House and had close to 60 votes in the Senate. It also makes no sense to focus this bill on the biggest oil companies, rather than the sector as a whole. Democrats apparently wrote the bill that way because of those companies’ large profits in the first quarter of this year.

Senate Majority Leader Harry Reid told journalists today that he will press for ending oil companies’ tax breaks as part of legislation on raising the debt ceiling. The U.S. hit its current debt ceiling yesterday and won’t be able to pay all its bills if Congress does not act to raise the ceiling by August 2. I believe President Barack Obama and Congressional Democrats are playing a losing game by making budget negotiations part of a deal on raising the debt ceiling. When it was time to raise the government’s borrowing limit in 1995, President Bill Clinton wisely refused to let Republicans use the occasion to “backdoor their budget proposals.”

Share any relevant thoughts in this thread.

UPDATE: After the jump I’ve added a statement Grassley released on May 17, calling on Secretary of State Hillary Clinton to approve the proposed Keystone XL Canadian pipeline project. Grassley depicts that project as a way for the Obama administration to help reduce the cost of gasoline. But an analysis commissioned by the U.S. Department of Energy earlier this year suggested that building this pipeline might cause oil and therefore gasoline prices to rise in the Midwest. Environmental groups have raised many objections to the Keystone XL project as well.

SECOND UPDATE: I’ve also added below excerpts from a report by the Congressional Research Service on “the extent to which proposed tax changes on the oil industry are likely to affect domestic gasoline prices.” The report briefly explains the five tax breaks that would be repealed under the bill senators filibustered.

Iowa Senators Tom Harkin and Chuck Grassley voted no on Tuesday as the Senate rejected an amendment to “establish a Bipartisan Task Force for Responsible Fiscal Action, to assure the long-term fiscal stability and economic security of the Federal Government of the United States, and to expand future prosperity and growth for all Americans.”

President Barack Obama supported creating that commission, which is the brainchild of Senate Budget Committee Chairman Kent Conrad. The goal is to find some way to get big Social Security and Medicare cuts through Congress. Don’t get me started on why a Democratic president and a bunch of Democratic senators are so keen on cutting the most successful programs Democrats have ever enacted.

Anyway, Conrad’s idea was for the commission to work out a comprehensive deficit reduction strategy, which Congress would be not be empowered to amend before voting on it. Two decades ago, a similar procedure was developed for recommending military base closings to Congress.

Conrad’s amendment, offered to a bill that raises the U.S. debt ceiling, failed on a bipartisan 53-46 vote. 36 Democrats, 16 Republicans and Joe Lieberman voted for creating the deficit reduction commission, while 22 Democrats, 23 Republicans and Bernie Sanders voted no (roll call here). Bloomberg News reported,

Conrad’s idea was attacked from the left and right, with groups such as the Washington-based anti-tax Americans for Tax Reform saying it would mean higher taxes while the AFL-CIO and NAACP said it would lead to cuts in federal benefits.

It was also opposed by lawmakers who lead congressional committees with authority over tax and spending programs. Among them are Senate Finance Committee Chairman Max Baucus of Montana, Appropriations Chairman Daniel Inouye of Hawaii, Commerce Committee Chairman Jay Rockefeller of West Virginia and Tom Harkin of Iowa, head of the health-care panel.

Senate Republican Conference Chair Lamar Alexander told Politico that Obama needs to “produce a Democratic majority in favor of” this idea if he wants more Republicans to vote for it.

During tonight’s State of the Union address, Obama is expected to announce plans to create his own deficit reduction commission. Bloomberg noted yesterday that “Such a panel’s recommendations ordinarily could be ignored by lawmakers, although Conrad, North Dakota Democrat, is trying to negotiate an agreement to guarantee a vote.”

Too bad the wrong North Dakota Democrat is retiring from the Senate.

Any relevant comments are welcome in this thread.