This is Part 2 in a series. To read Part 1 see http://thedrpete.wordpress.com/2013/01/17/what-must-be-said-and-americans-must-understand-part-1-in-a-series/
If you consider yourself a sensible and caring and thinking person, and you’re persuaded by the talk coming from Washington and news media about the so-called “fiscal cliff” and the “debt-ceiling”, you might want to factor into the equations just some of the built-in-intentional silly-speak.
Congress and the President use something called “baseline budgeting” and it’s nothing like what you use. Built in to each budget line item from year-to-year is an automatic 8-ish percent increase. So when any of them says, “We’re proposing a 5% cut in X”, you should hear, “They’re proposing a 3+% increase in X.” No one — not a sole soul — has proposed a real-world cut in anything.
Further, the silly-speak department includes something called “static budgeting”. The Congressional Budget Office (CBO) is not only non-partisan, but dumber than a rock . . . by law. When the CBO scores — projects the money outcome of any proposed bill, it must again, by law — ignore reality and assume that no one will change behavior based on the new law. So, for example, if the bill included raising your income tax rate from, say, 15% to, say, 95%, the CBO calculates based on your working just as hard and just as many hours. Would you?
In the real world, the Treasury will receive precisely the same amount of money from people taxed at 0% as if taxed at 100%. Zero.
So, if you have your thinking cap on, you realize that no one is planning to either raise revenues or cut spending, and we’re paying these clowns for this.
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