Blogs blowup bipartisan Boehner budget
Wow. Big blowup in the conservative blogs this week when it turned out the 30-some billion in savings from the latest Boehner-Reid-Obama budget don’t actually happen this fiscal year. They happen in the 2012 fiscal year and later.
If there was a significant amount of money being cut this year, the fact that some of it was also being cut out of later budgets wouldn’t matter so much. The problem is that the only cuts that we can be held to are the ones that happen now, and right now we’re still dealing with little more than rounding errors in the budget. We can’t continue to pay for spending today with non-existent cuts tomorrow. The bipartisan1 House plan cuts 300 million this year out of over a trillion in overspending. The other 30 billion are from “cuts” from subsequent years’ budgets. But, of course, next year’s budget hasn’t been written yet. It’s all up for renegotiation, and even if those cuts stay in, they can still be replaced by new spending.
In their defense, that’s the way Washington thinks; they probably don’t even view the gimmicks as gimmicks. It’s just the way they’ve always done things. And at least the 2012 and 2013 fiscal years are under this Congress’s watch: both of them are in the same term as everyone who just voted for the 2010 budget.
There are good things about the 2011 budget. It uses the 2010 budget as the baseline, apparently, rather than Obama’s profligate proposal for 2011, which means that those 300 million in cuts really are cuts, as opposed to the “less than what we wanted to increase” that so often pass for cuts.
For all the faults of the 2011 budget, Obama’s “plan” on Wednesday was far worse. He doesn’t care about the deficit. After submitting a budget proposal last month that made no attempt to cut spending, the President realized that people clearly do want the US to stop going further and further into unsustainable debt. So he promises that if we let him raise taxes2 for the next seven years, he can cut spending in the five after that. It’s hard to imagine a more cynical plan: seven years from now he’ll be out of office and won’t be able to keep those promises. The chances of his successor, after seven more years of profligate spending, saying now is the time to cut, is somewhere between T.J. Kong and Mary Benedict. That is to say, Slim and Nun.
The only plans that really do bring spending under control are plans that stop overspending; borrowing is something that should be reserved for emergencies. What are we going to do when a real emergency hits? We’re already borrowing at emergency levels. The only good plans are Paul Ryan’s and Rand Paul’s. Paul’s is by far the better of the two: it removes redundant government bureaucracies. But for that reason it won’t pass: we’re approaching or have passed the bureaucracy event horizon.
We’re trillions of dollars in debt, and adding more trillions every year. We can’t rely on fake cutting tomorrow. We need real cutting today or we’re going to fail when the next emergency arrives. And the longer we go on, the more likely it will be that the emergency will be a financial one of our making.
Spend now, cut tomorrow. Tomorrow never comes. If we really want to cut spending, we need to change the way things have always been done.
- April 15, 2011: The tree of compromise
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A little afterthought about the budget compromise. A long time ago, in an ancient century, I wrote a book called The Shopping Cart Graveyard; the kids, a soldier, and a talking bear end up on the Planet of the Politicians, where they learn the importance of compromise and moderation:
“We’re here, kids,” said Raphael. “Welcome to the Planet of the Politicians.”
The planet was covered in lights, flashing like a distant city.
“It is a distant city,” said Raphael.
“The whole fucking planet?” asked Leroy. “Do these guys have a hate thing going against plants?”
“No,” said Raphael. “They love plants. You can’t get elected if you’re not environmentally sensitive. They have laws that protect all of the remaining plant life on the planet.”
“Remaining plant life?” asked Leroy. “Where the hell is it?”
“There isn’t much left,” said Raphael. “Every year the environmentalists compromise with the logging industry and let the industry take 10% of the remaining forest and protect the remaining 90%. It’s a good compromise, because it’s better than 50-50 for the environmentalists. Last year, the logging industry got enough wood out of that 10% to make a toothpick. It went for the equivalent of 30,000 of your dollars on the open market.”
“What do they expect to make this year?”
“A smaller toothpick,” said Raphael.
“Why don’t they refuse to compromise?”
“Extremists are not electable,” Raphael said, and shrugged.
Getting more than the other guy doesn’t always work. It might slow the inevitable, but if you’re about to drive over a cliff, to borrow a metaphor from our president, any compromise between driving over the cliff and stopping is still driving over the cliff. If you don’t want to drive over the cliff, you can’t compromise. You have to stop.
The cry now is that the “real fight” will be over raising the debt ceiling, or over the 2012 fiscal year budget. For politicians, the real fight is always yet to come. They always want to put off the hard choices until tomorrow. Unless we force them to make the hard choice today, they never will make it. And we’ll be plummeting over that cliff.
Whenever I hear the word bipartisan I know there’s a sheep somewhere about to go on the grill.
↑He considers low taxes to be a form of government spending. No, seriously, he used the term “spending reductions” in his speech to mean more taxes.
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spending
- Apocalypse: Deal Only Cuts $352 Million In Actual Spending: Ace at Ace of Spades HQ
- “Then we finally agreed on $38.5 billion. Later inspection checked more closely, and most of that wasn’t really cuts at all, but accounting gimmicks, and the real amount of cuts was around $14 billion. Then someone noticed—actually, it’s closer to $8 billion. And now the CBO looks at it. $352 million, with an m, in cuts. What the government spends in… oh, about an hour and twenty minutes.”
- CBO: Obama understates deficits by $2.3 trillion
- “The estimate from the nonpartisan Congressional Budget Office says that if Obama’s February budget submission is enacted into law it would produce deficits totaling $9.5 trillion over 10 years—an average of almost $1 trillion a year.”
- Excerpts: US CBO: FY11 Bdgt Deal Wld Lower Outlays $20b-$25b
- “As a result, the estimated change in cumulative outlays under H.R. 1473 ($20 billion to $25 billion) is less than the reduction in 2011 budget authority ($37.7 billion). The vast majority of the $20 billion to $25 billion reduction in projected outlays would fall in the five-year period spanning fiscal years 2012 through 2016, with a small amount occurring over the 2017-2021 period.” (Hat tip to Ace and Miss'80sBaby at Ace of Spades HQ)
- How bad was the budget deal, actually?: Ed Morrissey at Hot Air
- “So basically the story is this: the budget bill reduces authorizations for spending by $38 billion. The actual spending that would have occurred between now and the end of the fiscal year that gets curtailed by these authorizations is $352 million below FY2010 rates.”
- Responding to Stern Emails From Speaker Boehner’s Office: Erick Erickson at RedState
- “The net, bottom line IMPACT is that the CR will only reduce discretionary spending by $352 million this fiscal year (once all the smoke and mirrors are cleared).” (Hat tip to Ace at Ace of Spades HQ)
taxes
- Hand-to-Hand Combat Has Started: William A. Jacobson at Legal Insurrection
- “As The Wall Street Journal points out, ‘According to IRS data, the entire taxable income of everyone earning over $100,000 in 2008 was about $1.582 trillion. Even if all these Americans—most of whom are far from wealthy—were taxed at 100%, it wouldn’t cover Mr. Obama’s deficit for this year.’ The truth is that Obama doesn’t care about the deficit. Obama proposed a budget not long ago which would have increased spending and the deficit. It was only after the recent showdown over last year’s budget that Obama decided that politically he needed to appear to be attentive.”
- Obama: Hey, I’ve Got a Great Idea. How About Automatic Tax Hikes That Pass Into Law Without A Vote: Ace at Ace of Spades HQ
- “Ah, I didn’t catch this. His idea about the automatic ‘spending cuts’ was coupled with the automatic ‘spending reductions,’ which is his new code for tax hikes.”
- Obama’s Remarks: I Am Boldly Authorizing The Next President To Deal With This Problem.: Ace at Ace of Spades HQ
- “Yup, tax increases for 7 years and promise we’ll start cutting spending like a mofo those last five years!!!!11! Swearsies!!!”
More budget
- Nice park you have there; shame if anything happened to it.
- Who is the extortionist in the shutdown debate? Who is trying to cause actual harm right now in order to get protection money?
- Defaulting on our debt is an executive choice
- If we default on any debt payments, it is because the White House has made the choice to default. There is no need to default even if the debt ceiling isn’t raised for a long time.
More deficit
- Congress passes sound budget
- Today’s fiscally-sound budget is a compromise between the left-of-center Ryan roadmap and the right-of-center Rand proposal.