indexCongressional negotiators released a $1.1 trillion dollar spending bill, which would fund the government through October. The spending bill fleshes out the details from last month’s budget that congress passed and the president signed. 

House Appropriations Committee Chairman Harold Rogers, R-Ky., stated “The Omnibus will fulfill the basic duty of Congress; it provides funding for every aspect of the federal government, from our national defense, to our transportation systems, to the education of our kids.”

Both Democrats and Republicans may not like everything in the bill but it’s the best that it was probably going to get considering the highly partisan nature of Washington.

“As with any compromise, not everyone will like everything in this bill, but in this divided government a critical bill such as this simply cannot reflect the wants of only one party,” Democratic Senator Barbara Mikulski of Maryland said in a statement.

The real work of getting the nations fiscal house in order has been kicked down the road and most likely after the mid-term elections.  The nation has a $17 trillion dollar debt that both parties are unlikely to or will not address.

To get the U.S. fiscal house in order Washington must tackle tax reform, entitlement reform, defense reorganization, and finally re-vitalizing the U.S. economy.

First, the nation has to seriously address the byzantine aspect of the federal tax code.  The last time that nation overhauled and completed comprehensive tax reform was back in 1986.  Since then the tax code as become a conglomeration and a chaotic mess in which many corporations pay little or no taxes.

Second, and a challenge for Democrats to address, is to reform entitlement spending.  Social Security, Medicare, Medicaid and other entitlement programs account for almost 70% percent of the federal budget and will only increase in the years ahead.

Part of entitlement spending also includes variety of different programs: food stamps, Supplemental Security Income, unemployment compensation, the earned income tax credit, child tax credits, child nutrition programs, federal civilian and military retirement payments, and veterans’ benefits.  If you include interest on the national debt you get to around 70% of where entitlement spending with a second category of mandatory spending equals a huge slice of the federal budget.

Third, and a challenge for Republicans to address, is reform the burgeoning defense department budget.  After about twelve years or war the Defense budget has grown and morphed into a colossus giant.  Billions are wasted and squandered on weapons systems and programs the military doesn’t want or need.

Both political parties need to remember President Eisenhower’s Farewell address to the nation when he stated, “In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. “

Final aspect in reducing the federal debt and to stop the flow of money to China; is to get America working again.  The nation has to address the dismal economic recovery; especially after last month’s pathetic unemployment report. More Americans are in poverty than ever before, record numbers are on food stamps and other federally funded government programs and with the labor participation rate at the lost level since the 1970’s, this will help us reduce are federal debt. 

This has to change!

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