Leveling the Budget Playing Field by Fixing A Kinky CBO
J.D. Foster /
Americans believe in fair play. They believe in equal opportunity, equal treatment under the law, a level playing field. We have so many expressions for this principle in part because it is so important to the American view of right and wrong.
When it comes to taxing and spending in Washington, however, there’s a longstanding and substantial tilt to the field. With the introduction of House Concurrent Resolution 281, a complete budget plan for fiscal year 2011 introduced by Reps. Jim Jordan (R-OH) and Tom Price (R-GA) on behalf of the House Republican Study Committee, there is finally a remedy to level the playing field.
The issue is a simple one. Congress debates tax policy and spending policy in terms of revenue and spending baselines provided by the Congressional Budget Office (CBO). Congress also frequently passes bills temporarily changing tax and spending policy. Examples include the scores of tax provisions now up for debate in the “extenders” bill, as well as really big picture spending programs like the highway bill, the farm bill, and the Medicare provision known as “doc fix.” The trouble arises because CBO does not treat expiring tax provisions the same way they treat expiring spending provisions. (more…)