Blog posts

Blog Post

Sequestration Is a Bad Way to Make Budget Cuts

December 07, 2017
To reduce budget deficits, policymakers must make politically painful policy changes by raising taxes on constituents and/or reducing spending on services provided to them. Because different tax increases or spending cuts of the same magnitude do not always have the same impact, policymakers should aim to make informed decisions that target these policy changes rationally.
Blog Post

Budget Process Changes or Trigger Mechanisms Can Not Substitute for Political Will

November 30, 2017
There is no shortage of proposals in Congress and in academia for improving the federal budget process. Given that the process has remained essentially unchanged since 1974, it may well be overdue for a facelift. Many of these proposals, such as biennial budgeting, could refocus lawmakers’ attention on long-term thinking. Others would create long-term fiscal targets and automatic mechanisms to enforce them.
Blog Post

Entitlement Reform Should Reduce Subsidies for Those Who Don't Need Them

November 14, 2017
Individuals with the least wealth or income potential are the most dependent on government programs for support. Thus, when policymakers talk about reforming entitlement programs, many observers are concerned about the potential impact on these vulnerable groups. The good news is that there are plenty of responsible ways to reduce costs without unduly burdening beneficiaries.
Blog Post

Changes in Borrowing Costs Can Have a Dramatic Impact on the Federal Budget

November 02, 2017
The federal government, like all entities that borrow money, pays for the privilege of doing so in the form of interest. A growing national debt therefore places a greater burden on the federal budget in the form of rising interest costs. The Congressional Budget Office (CBO) projects that under current laws, over the next decade the government will spend over $5 trillion solely to pay the interest costs for past borrowing.
Blog Post

Tax Overhaul Concerns

October 30, 2017

House Republican leaders are scheduled to unveil specifics of their tax overhaul plan this week, a plan that Republicans hope to push through Congress in a matter of weeks.

Blog Post

Both Sides Are Guilty of Budget Gimmicks

October 26, 2017
Policymakers in both parties often want to take credit for responsibly offsetting the costs of popular tax cuts or spending increases, but without actually making the hard choices necessary to do so. That would require higher taxes or lower spending in other parts of the budget. So politicians frequently employ budget gimmicks designed to hide the true costs of their decisions. For our leaders to address the nation’s fiscal challenges, these gimmicks need to stop.