Monday, December 26, 2011

Conservative Analysis of the 2012 Omnibus Appropriations Bill

     United States President Barak Obama signed the nearly $1 trillion 2012 omnibus appropriations bill into law. The act authorizes spending for 10 cabinet departments and the Legislative Branch.

     The appropriations bills for the other four departments was signed a few months ago, which resulted in a savings of nearly half a billion dollars.

     Although there was much media focus on the deal worked out with the Republican-led House of Representatives to extend the payroll tax cut for two months until a full-year extension could be worked out and also to extend unemployment compensation, there were several other provisions of interest to conservatives. 

     The bill contains $95 billion in spending cuts, including a delay in the environmental regulation of coal dust. There will be many cuts in domestic spending, as well as additional savings will come from the military drawdowns in Iraq and Afghanistan.

     Conservatives were most successful in the policy riders they were able to attach to the bill, such as an expedition of the granting of permits for off-shore oil drilling, some curtailment of Interior Department land-grabbing powers, repealing regulations restricting the purchases of incandescent light bulbs, banning federal needle exchanges and prohibiting federal abortion funding in the District of Columbia. Additionally, the bill continues not to fund the Internal Revenue Service to implement Obama’s federalization of health insurance and the transfer of terrorist detainees at Guantanamo Bay, Cuba to the U.S. mainland. Another rider forces the President to decide whether to expand the Keystone gas pipeline. 

     A number of other riders conservatives attempted to insert into the bill were rejected by the President in the deal. Although the spending cuts in this compromise are small relative to the size of the federal budget, they represent continued progress in cutting spending without raising taxes. There will be major controversies next year, during the election campaign, over the extension of the Bush tax cuts, reducing domestic spending, averting massive defense cuts and the extension of the gas pipeline.

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