When Bush vetoed the Supplemental Appropriations bill over conditions on Iraq, also vetoed were provisions in that bill doling out some $25+ billion in non-defense spending, most of which was pork. (This is also called the "payola" scam b/c without the pork spending as an inducement, Pelosi would not have gotten the votes from her fellow Dems to pass that bill.)

So the word from my inside sources on Capitol Hill, the House Appropriations committee will trim that to $21+ billion as they negotiate with Bush over the kind of Iraq conditions he will accept. Pelosi still needs to play the "payola" game with her Dems but this time she gets the WH to yield. Budget hawk Republicans are worried. Ditto the tax cutters. Ugly game, ain't it?

The Dems are also working on an AMT "fix" which will merely shift more of AMT's burden up the income ladder. The Dems hope to force Repubs to choose between either protecting the highest income taxpayers earners (top 1% is mentioned) and the tax relief for the millions now paying AMT.

AMT of course was what the Dems enacted decades ago to hit the-then top 225 taxpayers then paying little or no tax (due to numerous deductions and exemptions) and to ward off the prospect of more fundamental tax reform. AMT is their tax policy -- and it mostly works to shield high taxes by certain blue states such as NY.

Because the Dems are very clever and now in the majority, they get to set the agenda. Someone from outside the sausage factory needs to blow the whistle before Bush gets cornered into signing onto billions in new spending (expect him whittle it down to $15-18B or so) and later be cornered into accepting some crappy AMT "fix" which just helps the Dems and screws productive people like you and me.

So...what to do? Blow the whistle that a weakened Bush will be forced to accept over-budget spending and a bad AMT deal unless he snaps out of his funk. Solution: refuse to go along with any non-defense, non-emergency spending in the War supplemental and call for either the repeal of AMT (redirecting taxpayer anger where it should be at the states doing the over-taxing) or cut the AMT rate to 20%, thereby enacting a flat tax in one fell swoop.

I am a practical lawyer-lobbyist and an experienced one. It is my opinion that this strategy might, repeat might, work but first someone has to shine a light on the problems and propose an alternative. At a minimum, it will stop the bleeding.

So...to all those amateur observers of the Washington game who think divided gov't is good because the excesses of both parties are gridlocked, I say wake up. Pelosi & Company has found the key to the lock! It's Bush's weakened stature and his desperation on funding the surge in Iraq. Once they break free, the Dems will hit the accelerator on spending and escape from the predicted AMT mess they created.

So...Republicans on the Hill need to push back on both Bush and Pelosi -- freeze spending and either repeal or lower drastically the AMT tax.