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The Democrat budget’s “spending cut” hocus pocus

It’s awful that the Democrats want to squeeze a trillion dollars in new taxes out of Americans with Senate Budget Committee chair Patty Murray’s (D-WA) budget proposal, but hey, at least they offer a “balanced approach” by cutting a trillion in spending too, right?

Wrong.  The “spending cuts” are almost entirely fraudulent.  They’re just paperwork shuffles and accounting tricks.

It begins with one of the most reliable old flim-flams in the Democrat budget arsenal, “war savings.”  This is accomplished by assuming that military operations in Iraq and Afghanistan would continue forever… except hey, what do you know, they’re ending!  BOOM! $240 billion in “savings!”

In addition to being an insult to our intelligence, the “war savings” scam offers depressing commentary on the way Democrats view government spending through the lens of “baseline budgeting.”  The default state of every government program is eternal existence, with built-in annual increases.  Can anyone name a major program other than military operations that ever ends, or even diminishes appreciably?  Okay, how about a minor one?

On top of the phony war savings, Murray’s budget does cut into the military, funding America’s defense a good $658 billion below the House budget figures, according to the Heritage Foundation.  The military remains the one line item Democrats really are willing to slash.

Then you’ve got $242 billion in reduced interest on the national debt – which is not, under even the most tortured definition of the term, a “spending cut.”  Debt interest is mandatory spending, which is one reason the common liberal scare tactic of wailing that a debt-ceiling freeze would ruin the “full faith and credit” of the U.S. government is malarkey.  There is no voluntary Congressional action involved in raising or lowering debt interest payments.

Furthermore, CNN noted that “it was not immediately clear what assumed level of spending was being cut” to achieve these debt interest “savings,” which is a polite way of saying Murray just plucked the number out of thin air and scribbled it into her little fantasy.  I once again invite the reader to imagine how the shrieking hysterics who freaked out over those tiny sequestration spending reductions are going to cough up enough hard-core cuts to lop $242 billion off federal interest payments.

All of these figures are expressed as 10-year sums, which is patently ridiculous when it comes to spending cuts (and is a practice fiscally responsible Republicans really should argue against.)  A 10-year spending cut plan for the federal government is just about meaningless, as no future session of Congress will feel particularly bound to honor such commitments, absent overwhelming public pressure that terrorizes them into fidelity.  The big spenders are pretty sure they’ll always be able to round up enough eager clients to keep terrifying levels of public support for honoring four, six, or eight-year-old spending cut plans from accumulating.  Let’s treat the American people like adults and talk about the next two years, not the four Congresses after that.

Speaking of sequestration, Murray’s budget wipes that out, trading modest but real spending restraint for smoke and mirrors.  She’s even got another $100 billion in “infrastructure” pork spending packed in.  ”The Murray budget does not contain net spending cuts with the sequester turned off,” reports The Hill.  What a shock.

Meanwhile, the trillion dollars in tax hikes will be real and immediate, as every tax deduction and credit that doesn’t go to a core Democrat constituency becomes a “loophole” in need of closing.  The tax code is far too complicated, to be sure, but one result of combining high rates with lots of deductions is that taking away the deductions becomes a relatively easy way to extract more revenue from the private sector.  The discussion is transformed from “how much will the government take?” to “how much will the government let you keep?”  Deductions are even more micro-targeted than “progressive” tax rates, which makes them easier to demagogue.

And with all that, the Murray “blueprint” never gets closer to “balancing” the budget than about $400 billion, sometime around 2016.  It gets worse again after that.  The national debt keeps growing, when even holding it at $17 trillion wouldn’t be good enough for America’s long-term prospects.  Remember when $400 billion and $500 billion deficits were an outrage?  Now they’re superhuman feats of fiscal discipline.

The Hill relays a very appropriate level of disdain from the ranking Republican on the Senate Budget Committee, Jeff Sessions of Alabama, towards the Democrat proposal:

“If the Senate Majority’s budget actually contains these accounting tricks, it would increase spending above already massive projections for spending growth. In other words, Senate Democrats would be proposing a tax hike to fuel even more wasteful government spending,” Sessions said.

“Can it really be this is all they have developed after four years of not producing a plan?  If that it is so, no wonder why they won’t make their proposal public until after the committee meets.”

But let’s temper our disdain with one important recognition: the Democrat budget fantasia gives them a strong bargaining position, because they have lots of fat to trade away, while Republican negotiators have a nasty habit of opening with nothing but muscle and bone to lose.  It’s up to the American people to insist that Democrats begin budget talks somewhere in the real world.  We have been led to ruin by indulging their penchant for demanding the sun, moon, and stars from American taxpayers, and “compromising” by giving up a little real estate on the Moon.

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COMMENTS

  • Next93

    Why do we keep treating military spending this way? The first rule of project management is that you can’t set the program objectives in stone and then tinker with the budget (or schedule). Doing so is tantamount to setting yourself up for failure. Any time I get my budget or schedule cut, the first thing I do is go back to the person responsible for the cut and ask what I’m allowed to cut out of my charter. If I don’t get an answer, I make it clear that I’m not going to get $20 worth of work out of a $5 budget.

    I wouldn’t have any problem with deep cuts in our “defense” budget if we started by re-defining our foreign policy strategy and identify corresponding deep mission cuts. Given the fact that we’re now a debtor nation, I think it’s probably about time we scaled back some of our aspirations.

    I suspect that we could shave a lot out of the Pentagon budget if we started by abandoning the idea that we’re responsible for the defense of Japan, Taiwan, Korea, the Balkans, and western Europe. If we wanted to give up the “rapid response” capability, we could save even more (and, after the Libyan debacle, you have to ask what the sense is of having a courageous team of SEALs at the beck and call of a gang of gutless aparatchiks?)

    Of course, that also means we’re risking some seriously Bad Things, and i think we should do some serious thinking about the potential consequences. But the idea that we can continue to wheedle the DoD’s budget without starting to trim off some of their responsibilities, is simply foolish.

  • bolshevik

    Clearly, the path to spending cuts goes through reducing the communist-like government unions… not only in reevaluating over compensation of clerks, but to cut the massive number of unnecessary positions. If anyone deserves a raise, it is the military… not the libs.
    If a retirement fund has no contributions and especially if it is not funded, then it should not exist. Age limits to access the contributed funds should, at the very minimum, parallel the Social Security fund… which requires mandatory contributions (so it is our money we want back). Look what can be cut… Post Office, TSA, Legislative and Judicial staff, Education administrators, unemployment clerks… and on and on and on.
    If Obamacare is going to be shoved down everyone’s throat, then it should be for everyone… government included. ‘All’ means all… that’s all ‘all’ means…

  • surfcat50

    Didn’t Senate Democrats broadcast their seriousness when it was announced Senator Patty Murray was their budget chief? After all, she’s about as smart as a fresh +erd.

    Seriously, what did anybody expect? This budget should be CELEBRATED by Republicans as offering the most clear contrast possible.

    Instead of complaining about its contents, Republicans should begin contrasting its levels of spending with the levels in their own budget. They should compare the growth rate of, say, welfare, Medicaid and defense in each budget. They should compare the level of taxes each budget would require to sustain them. They should have each scored and compare the level of debt each ends up with.

    Whenever possible, their comments should conclude with the question which one America prefers. The Senate budget provided is exactly WHY they have not shown one to us. They might have tried some additional disguises to it but didn’t.

    Senators, let’s vote on it ASAP! Let the fun begin.

  • sgtken

    Cut every politically correct program out of the military budget that is not military. Like $25.00 gal bio fuels would be a start. But the dems use the military for all their social programs. And we have no real generals to stop it.