House Speaker Kevin McCarthy leads a republican revolution with debt reform bill

House Speaker Kevin McCarthy is leading a republican revolution. The majority of his conference is behind him. They have confidence in him, and his debt reform bill will pass the House.

With a $2.1 trillion of its kind according to the CBO and FBS budget cut from FY '23 of $139 billion, and a tough across the board 1% spending cut sequester if appropriators don't maintain the agreed on 1% cap on spending, plus a number of pro-growth policy reforms is all good. In a divided government, compromises are necessary. The debt deal is not as good as the original limit, save, grow bill, but I think Speaker McCarthy got about 70% which is awfully good. Recall that he always said he 'd take a 70% win now, and get the rest later. The Republican House's victory is a resounding victory, as the legislation completely spun around Joe Biden. Biden argued for almost 100 days that he wanted a clean debt bill. And then, all of a sudden, this weekend, he agreed to a massive spending cut and huge policy reforms. It's a big step, as it's one of the first steps in reviving the federal government. The House budget resolution is also expected to be tabled next week. The upcoming spending cuts are in the works. There are more pro-growth measures on the horizon. The only thing you need is a Republican Senate and a Republican in the White House. Rome wasn't built in a day, according to British writer John Heywood, who wrote it in 1538. I knew him well. At every hour, Mr. Heywood wrote, the Romans were laying bricks. So, I would say to some of my very good conservative friends, brick by brick, day by day.

I understand your trepidations about the debt deal and I always respect your point of view, and I generally share your legislative instincts, but on this one I think we have a chance to restore conservative governance and a prosperous economic agenda. I'm not sure what in the bill people are concerned about. The savings were the largest savings of 2.1 trillion we've ever had. It's the first time in history, where we're pulling back money from the hardworking taxpayers that are going to China. Why are Democrats against welfare requirements?

In addition to the spending cuts and the sequestration with no regular budget order, the work requirements and the NEPA permit reforms are important pro-growth measures to promote work and reopen the fossil fuel spigots. The $1.9 billion IRS enforcement money has also been removed from this coming fiscal year's budget and student loan payments will be resumed to the tune of $5 billion a month. The government will also take back $US$3 billion in unspent COVID money.

Joe Biden's massive regulatory assault against energy and business will be stopped with a pay-go provision, which says any executive branch regulatory costs must be offset by regulatory cost reduction. Biden's current socialism regulatory assault has cost about $1.5 trillion, and let's not forget that there is no tax hike. Republicans and conservatives have won this election. Do not allow the perfect to be the enemy of the good. The bill passed the House.

This is adapted from Larry Kudlow's opening commentary on the May 30, 2023 edition of Kudlow.