Saturday, October 19, 2013

It's a war about discretionary spending

Texas, California and New York hate it.  Texas Republicans hate discretionary spending worse than they hate Obamacare. The big states are none to happy about passing a large piece of the federal budget through the parochial interests of the 30 small Hoovers.

That was the deal with Yellen, she likes discretionary spending, Summer's not so much. California loses big time, knocked off its perch as the Obamacare Star pupil. The Senate Hoovers now control a larger piece of the California tax stream, right in the middle of the Obamacare build out. Brown will pay a higher price for federal help on water issues. Texas oil and gas in danger of taxation.

And that is why sequestering remains, Texas and California implicit allies in enforcement.

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