Do we keep extending the nation’s debt as if there’s no limit?

Newell Normand
Wednesday, September 13th

Let’s talk about the “politics of recovery.”  Irma & Harvey caused some $200 BILLION dollars in damage to homes, cars, commercial real estate, public infrastructure.  Who pays to fix what insurance won’t?  Do we keep extending the nation’s debt as if there’s no limit?  Then, who pays the price?

This segments guest:
Ron Faucheaux - Political Analyst & President of Clarus Research Group


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

We're back in we're talking Iran push a political analyst and president of Claris research group and we've been talking about it. Hurricane relief being tied to other issues that are being presented before congress and before the break we're talking about this tax reform issue. And we've heard a lot of different numbers. Ron being thrown around about. You know what is the tax reform unity is it going to be you know the the upper limits in the thirties and what you pay in taxes down to. Of the industrialized nations I think the average is sixteen or 17%. Neared covered numbers of 2223%. Were you feeling since it and when you say there's only. Well. There's there's two possibilities of what could happen one possibility is that they really try to do some type of tax reform. Where they. Try to provide you know job creation incentives for business and in dealing with some of the cultural money. And then figure out ways to simplify the tax code in the tax system for regularly individual filers. That's I deal in and there's a lot of support for that in congress. But but the political reality means they might end up simply having some tax cuts for business. Maybe go a tax cut it to for average people somewhere. And and then call it today in call attacked reform. Tax reform takes a lot of effort into it takes a lot of time for the way everything takes time and congress but. But it's certainly something that it's a lot of moving pieces there. And and so I think most people who watching congress thinks they're gonna end up with something actually fairly ball. Modest when they do some business tax incentives that could business communities happy. You do some middle class tax cuts. People generally happy. Maybe find some ways to offset some of that with though within at revenue and then that's it and try to make people happy and not. And not get into the hole or worker really. Overhauling restructure the taxes. You know kind of disheartened to hear that because it it. I often. Think about this says the check you box politics of oil we made these promises tried it we haven't really thought it through. We haven't applied a lot of intellect to this issue. Really done her research. And it's just like okay we're going through this litany of of items that we promised that right he's sort of prominence and write and here we go we're just gone down a list checked the box drive up. And Lisa L in we've seen that with healthcare reform. The the they had a whole series of Health Care Reform plans that didn't make it through congress. Now we have senator Cassidy and Graham and Heller who governor approached you know to try to do something to fix the system. And and it's the same thing in in tax reform may end up the same ways that. But the grandiose ideas in the big things at the president talked about some people in congress wanted to. Days they just not they just may not be able to get to get it done politically. So when we moved to the next issue where and we talk about this hurricane relief and and in the next hour we're going to be talking about daka. And immigration seems to be a lightning rod issue obviously. In Washington these days. And we know here in Katrina that in to rebuild effort in the greater New Orleans area. The illegal immigrant population. Played a huge part. In the rebuild. I was talking to a contractor Jewish yesterday who knew tells me that building supplies. Have or have already. Gone up in price substantially. And a cost the labor obviously. Is going to be impacted in huge ways while when you think about. The breadth and depth that Houston and now the breadth and depth the Florida peninsula. That's right and then I'll talk to some people and actually would building supplies and contractors in the last. Last week or so and have said the same thing. So there's going to be a lot of pressure for labor a lot of pressure from workers a lot of pressure for immigrants. To do a lot of their work and given the the boon. To both Texas and in Florida that have a lot of low hopes strong immigrant populations. I think it's going to be very difficult. For both of those states to what to do with they have to do without. So when we come back we'll go to the phone lines and that we want to hear which you're if they can and will be right back Noual Norman on Debbie though yeah I'll. We're back with Ron push a political analyst and president of Claris research group in. Ron you brought together an amalgamation of six or so different polls as to whether or not certain. Folks are doing enough as it relates to hurricane relief with Harvey and after some role that you say that majorities believe FEMA the Texas State government and the Red Cross is doing enough in response to hurricane Harvey. Trump is net positive response. But congress' net negative. Well that's that's. Right I mean only about 15% of the American people. Approve of the job congress is doing and so they use they even when congress does something that hopefully to do anything but dumb. But I just think people have gotten. Used to in in tar and all of it and and reconciled to the fact that nothing much happens in congress. And end and so that's their inclination to say that but but I do think in is uninteresting that's that famous reputation. Since the horrible situation and Katrina. Has really been rehabilitated. And I think that that that disinterested in the polls to I think their messaging hasn't proved. A hundred full and I think the new FEMA director has done an incredible job neo and I was really impressed with. His coordination with the Texas State officials as well as the floor right there as well. BI if it'll look like both states as well as FEMA had their act together. And in it and it's it was tragic that it took the situation here on the Gulf Coast of two laws to sort of blow that whole thing up put but it does look like progress has been made. We have uninteresting taxes are relates to you know talking about this stalemate in congress. And that person writes and compromise is not always appropriate when principles aren't all such as abortion. Certainly it's fitting in cases like that to hold a politician's. Feet to the fire and label him or her. We elect folks who we expect to reflect our desires and opinions. And not to compromise. Anyone can compromise. So no special talent is needed Davy Crockett quick congress because it too many compromise. You need to stick to. Well. If that I mean you know that's that's right in terms of of of standing for principle. If people have principles and in. In philosophies that they wanna advocated they should stand for. And I don't think. That that that they would necessarily have to compromise that basic principles. But what we're seeing in congress is not that. It's not that we're asking people with you know who pro choice to become pro life from pro life to become pro choice. What we're asking people to do is to straight on areas where you can compromise. And there's a lot of things on tax reform and immigration. On health care a lot of things where Democrats and Republicans liberals and conservatives can work together on. They are always matters of of of ideological principles that separate people you can find common for a and so nobody is saying you know give up you principles. In fact. If if people wore compromising. In finding common ground on practical things. It would give people who hail of who hail of you know deeply held principles time in an opportunity to fight for those principles and not be caught in his system when nothing gets them. Well the devil's always in the details and then you have to weed. What you're actually passing. In two. The government operationally. This let it makes cents shore so that you are not. Impacting one group more at. Than others write things of that nature and that's where the art of the compromise such actually comments we'll play congress because you know on on on some of these complicated issues. There role lot of things. Oh where people on both sides to sit down and agree. And in what they need to do is say let's agree on where we can let's get it done and then we fight about the big things over time. We'll pick this conversation up will be right back I'm Noual Norman on W Dario. We're back we're Ron tocchet political analyst and president of Claris research group and Ron. We've talked about a number of issues that could potentially be tied to this hurricane relief bill. Do you see any other potential pieces of legislation that may ultimately. Go the same path. Well you know you you have quite a few things that that could be affected by first of all you have to look reauthorization. Of the National Flood Insurance Program. Which show wit which is side has been temporarily. Re authorized but that has to be. Has the you know that needs to be worked on. They generally. Authorize it for I think five year periods Utley senator Cassidy has been working to do with for ten years which should be a wise course. And so that's really important for for the whole Gulf Coast in for a follow all areas in. In in flood areas. The other thing of course would be the the of course the budget all the budget issues. President trump Padilla has been making an effort. To cut the budget and in to cut spending. Republicans in congress have said for years they wanna do that button on occasion they have done on occasion they haven't done it. It's certainly affects all of those spending cut issues. Because all a lot of conservatives. In particularly in the house in the house freedom caucus. They don't believe in in increasing any spending he benefits for four hurricane recovery in unless it's offset by someone the caught. So while so you know it's gonna affect how all of those people and all of those issues that have to be dealt with. Who Rhonda you know I really and you know when he NF IP is circuit and conversation about making that like catastrophic insurance and having everybody pay into this pool so that we're not fighting this battle. And this reauthorization. All the time yes that there has been an area is ongoing. You know one of the things most people don't realize is really up until about Katrina. Though the flood insurance program was not incurring much of a deficit. Over the years since the late sixties that the flood insurance programs been in existence. Prior to the most recent things. The the blue payouts are only about fifty billion dollars for all of those years. So while so while we have two storms that may reachable 200 well in hand and that can certainly run way up. Album but I do think there is some interest in congress. In in requiring people get flood insurance if there and float planes. In in not just if they have a mortgage which is Ron thank you so much for joining us tonight we're enjoy or appreciate your insightful thoughts into all of these very important issues that we face. Well I think congress and across this country each and every day thank you.