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OVERNIGHT MONEY: Ready, set, budget
WEDNESDAY'S BIG STORY:
Here we go: There's nothing like accelerating right through the starting line, especially when it comes to budget markups on Capitol Hill.
The House Budget Committee will start the festivities on Wednesday morning with a markup of the blueprint proposed Tuesday by Chairman Paul Ryan (R-Wis.) that would cut spending by $5.7 trillion, reduce the top tax rate to 25 percent and balance the budget within 10 years.
In the afternoon, the Senate Budget Committee will take up Chairwoman Patty Murray's (D-Wash.) budget plan. The first budget from Senate Democrats in four years includes nearly $1 trillion in new taxes but would not balance the budget.
Her panel is taking two days to get through the budget process.
The intention is for both budgets to receive respective floor votes before Congress breaks for Easter recess, beginning March 22.
Still, the chambers are so far apart there's probably a better chance that white smoke will pour out at the Vatican for an American pope than the two sides being able any time soon to reconcile their philosophical differences over the nation's budget future.
But, the priorities are in writing and on the table. So, let the negotiating begin.
Ryan's budget includes virtually the same Medicare plan that Ryan put forward last year, giving seniors the option of purchasing private insurance on an exchange and receiving "premium support" payments.
Murray's plan would turn off the next nine years of the sequester and replace those spending cuts with a 50-50 mix of tax increases and spending cuts.
The budget would dedicate $100 billion to economic stimulus in the form of infrastructure spending and job training.
Needless to say, both budgets hit with a thud for the respective minority parties in each chamber.
Rep. Chris Van Hollen (D-Md.), the senior Democrat on the House Budget Committee, labeled Ryan's budget proposal a "hoax" that relies on Democratic legislative successes to balance the budget.
He accused GOP leaders of cherry-picking certain advantageous provisions — even provisions they've strongly opposed in the past — to get to balance in a decade.
Van Hollen wasn't alone in his condemnation, with other congressional Democrats willing to take a swing at Ryan's budget plan.
"With the Ryan budget today, Tea Party Republicans are tripling down on a radical plan that demands seniors pay more for Medicare instead of ending tax breaks for corporate special interests and Big Oil companies," Rep. Steve Israel (N.Y.), head of the Democratic Congressional Campaign Committee, said in a statement.
Senate Majority Leader Harry Reid (D-Nev.) joined the chorus, too, saying the House's budget is the “same old approach” that voters rejected in November.
"He’s pulled the wool over the eyes of the people of the House and they continue to follow him, but his budget is anything but fair," Reid said on the Senate floor.
Republicans sang a similar tune in response to the preliminary details released by Murray on Tuesday, saying they were shocked that the budget increases taxes but doesn't get to balance.
Meanwhile, as lawmakers move ahead with their budget plans, the White House said its budget would come out the week of April 8.
The president's budget typically precedes proposals from Congress, and is expected in the first week in February. This is the third consecutive year that Obama has missed that deadline.
Senate Minority Leader Mitch McConnell (R-Ky.) said that plan will be like dropping a "bomb" on the legislative process.
McConnell warned that with the House and Senate expected to approve budget plans this month, Obama’s delay could disrupt lawmakers’ effort to reach an accord.
"Rather than helping to lead Congress toward a reasonable outcome, it appears the president is happy to drop the bomb on the congressional budget process instead, by releasing his budget plan after — after — the House and Senate have already acted," McConnell said on the Senate floor.
"The president should send over his budget now, not next week, or next month, but today, so both sides can consider it at a time when it might be helpful, rather than destructive, to the entire process."
BUDGET WATCH
Whip list: The Hill is polling House and Senate lawmakers on their support for a budget plan. Check for updates here.
WHAT ELSE TO WATCH FOR
Appropriating appropriators: House appropriators are loaded up on hearings this week and will chat with FEMA Administrator Craig Fugate on Hurricane Sandy funding oversight, with a separate subcommittee examining implementation. NASA Inspector General Paul Martin is on Capitol Hill to talk about his agency, and the Labor and Health subcommittee will hold a hearing on agencies under its jurisdiction.
Sequester effects: The House Armed Services Committee will chat with top military personnel about how spending cuts are affecting their operations. In a story on Tuesday, the Pentagon said it is in survival mode over its budget problems, facing a potential $46 billion cut under sequestration for the last seven months of fiscal 2013 fiscal year. The budget for fiscal year 2014 is being readied, but the topline spending figures for next year are even more murky.
Mortgage insurance: A House Financial Services subcommittee will explore the public and private approaches to mortgages insurance with industry experts.
India trade: The House Ways and Means subcommittee on Trade will hold a hearing Wednesday on U.S.-India trade relations, with the focus on the growing trade and investment relationship between the two countries with government officials and think tank experts.
The United State is India’s third-largest trading partner, while India ranks 13th largest for the United States.
BREAKING NEWS
Holding pattern: President Obama's pick to lead the Securities and Exchange Commission (SEC), Mary Jo White, appeared set to cruise to confirmation following a hearing on Tuesday — but Richard Cordray, his choice to lead the Consumer Financial Protection Bureau (CFPB) remained in limbo.
The recess-appointed CFPB director, who has been renominated for the position he has held for a little more than a year, still faces stiff Republican opposition because the GOP wants changes to the bureau's structure.
Wave of frustration: Two Republican senators blocked an effort to consider a $948 billion spending measure that would keep the government funded through the remainder of the fiscal year.
The move led Senate Majority Leader Harry Reid (D-Nev.) to delay a procedural vote on the bill Tuesday afternoon that would have started the amendment and debate process. Instead, he filed cloture and is planning a vote for Thursday.
Senate Appropriations Committee Chairwoman Barbara Mikulski (D-Md.), who has worked out a deal with panel ranking member Sen. Richard Shelby (R-Ala.), asked if debate could be moved up to Wednesday if an agreement could be reached.
Reid said he would consider the idea.
Sens. John McCain (R-Ariz.) and Tom Coburn (R-Okla.) blocked the Senate from proceeding to debate the bill. McCain indicated on Tuesday afternoon that he would try to speed through reading the 500-page bill so as to not hinder the process much further.
Meanwhile, the White House on Tuesday called for passage of the Senate's compromise spending bill that would fund the government for the remainder of the fiscal year.
LOOSE CHANGE
Tax Reform!: Dave Camp's at it again. The House Ways and Means chairman released a draft tax reform proposal dealing with small businesses on Tuesday, his third such effort in the last year and a half.
The proposal seeks to streamline the rules surrounding S corporations and partnerships — types of businesses that pay taxes through the individual code, but currently face dramatically different tax rules.
Of course, Camp also underscored his challenge in tax reform by releasing his draft the same week as the House GOP and Senate Democratic budgets.
ECONOMIC INDICATORS
MBA Mortgage Index: The Mortgage Bankers Association releases its weekly report on mortgage application volume.
Retail Sales: The Commerce Department will release its February report measuring the total receipts of retail stores. Sales figures are widely followed as the most timely indicator of broad consumer spending patterns, which represent 70 of economic activity.
Export Prices-Import Prices: The Commerce Department releases its February report tracking trends in exports and imports, with the export data worth watching for indications of how the global economy is faring. Imports provide an indication of domestic demand, but given the severe lag of this report relative to other consumption indicators, it is not particularly valuable.
Business Inventories: The Commerce Department will release its January report on sales and inventory from all three stages of the manufacturing process, manufacturing, wholesale and retail.
WHAT YOU MIGHT HAVE MISSED
— Senate Dems challenge Obama on chained CPI for Social Security
— Two senators ask Holder to clarify 'too big to jail' comments
— Obama: Trade deals best avenue to US job creation
— Study: Corporations shifting billions more offshore
— Small-business index continues rise
— McConnell predicts summer showdown over the debt limit
— Obama appealing to Supreme Court over recess appointments
Catch us on Twitter: @VickoftheHill, @peteschroeder, @elwasson and @berniebecker3
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