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May 25, 2004Sen. Lieberman's "Present Value" Budgeting ProposalLast fall, Sen. Joe Lieberman introduced a bill (S. 1915) to require that the government use "present value" accounting estimates of proposals that would expand unfunded entitlements or tax cuts that are not "paid for" by offsetting reductions in federal spending. Specifically, the bill would (1) create a supermajority budget hurdle or "point of order" for bills that would increase the present value of our unfunded liabilities or debts by more than $1 trillion (in today's dollars), regardless of any "sunset" provisions designed to hide the intended long-term cost, (2) disallow the use of expedited budget procedures (such as budget reconciliation) to increase the deficit or reduce the surplus, (3) reestablish a strict "pay-as-you-go" regimen for spending and tax bills, requiring a supermajority vote for bills that aren't "paid for," (4) require Congress and the executive branch to estimate the overall present value of the nation's unfunded liabilities or debts in official budgets, (5) compel the President to submit plans to reduce debts if their present value exceeds a threshold, and (6) set up a bipartisan commission to consider the President's plan and prod Congress on the issue. In the absence of these sorts of measures, the Bush Administration and Congress seem intent on buying the loyalty of voters (and political donors) using our children's money. Ultimately, every additional dollar of national debt must be paid back by future generations, either through higher taxes, lower government spending, or higher interest payments coupled with slower economic growth. The Lieberman bill would help bring that reality into focus. Links: Centrists.Org It's the Sunsets, Stupid! CBO and JCT Should Show the Extended Cost of Expiring Provisions (May 3, 2004) Centrists.Org The Fourth Entitlement: Interest (December 1, 2003) Posted by Jeff Lemieux at May 25, 2004 12:10 PM |
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Centrist Policy Network, Inc. |
