October 31, 2014

Posts on federal budget

Subscribe to this feed Subscribe to this feed

 

Thursday, January 28, 2010 - 10:52 PM

If fiscal responsibility calls for significant changes in the big federal entitlement programs, shouldn’t the defense budget face scrutiny and reductions as well?

That question comes up a lot when The Concord Coalition emphasizes the need for entitlement reform. The answer is, “Yes.”

About a fifth of the federal budget goes to the Pentagon, and it is clear that there are many opportunities to achieve significant savings without jeopardizing national security.

Petty turf wars, bureaucratic bloat, poor planning, lax bookkeeping, no-bid contracts, illogical personnel policies and simple extravagance all inflate the defense budget in ways that knowledgeable taxpayers understandably resent.

In addition, short-sighted members of Congress often champion unnecessary defense spending -- or at least turn a blind eye to it -- in deference to the special interests that stand to profit.

All of this adds to the nation’s fiscal imbalances and massive borrowing. That’s why The Concord Coalition supports careful review of the defense budget to identify reasonable reforms and spending cuts.

In calling for a bipartisan fiscal commission that would submit recommendations to Congress, for example, we have stressed the importance of giving the panel a broad mandate that puts everything on the table. That...

Wednesday, January 20, 2010 - 2:57 AM

"It isn't fiscally irresponsible to raise the debt limit, I think it would be rather irresponsible not to raise the debt limit because we have already incurred the bill."

That quote, from Concord executive director Bob Bixby, is one of many from our new videos highlighting some of the key points driving fiscal discussions in Washington.

We recorded the videos because the Senate is set to begin debate on increasing the debt ceiling while all of Congress awaits the President's budget proposal, which will purportedly contain the Administration's ideas for how to reduce the country's budget deficits. 

The first shows a discussion about the basics behind increasing the debt limit and how there are a few key budget process reforms tied to fiscal responsibility that have become part of the debate as the Senate approaches a difficult vote. We talk about the possible Senate amendments...

Tuesday, January 19, 2010 - 6:52 PM

It’s a little amusing to see how badly the idea of a bipartisan fiscal commission has frightened some partisans at both ends of the political spectrum. That alone indicates the idea may have merit.

Some skeptics, of course, doubt that a special bipartisan panel would have any hope of success in steering the government onto a more responsible fiscal course. And there’s no question that this would be a very tough assignment.

But the strident opposition to a bipartisan commission from some critics on both the right and the left is rooted in fears that such a panel might actually succeed. They describe commission proposals in conspiratorial terms, as though serious bipartisan planning for the nation’s future would be merely a cover for shady plots to sneak reprehensible policies past Congress and the American public. Oh, the deceit of it all...

The Wall Street Journal, for example, recently ran an editorial conceding that “current federal commitments are unsustainable, starting with $37 trillion in unfunded Medicare liabilities.”

Yet the editorial ruled out a bipartisan commission that could tackle this...

Wednesday, January 6, 2010 - 10:57 AM

When we finished our issue brief on the health care reform "endgame" before the holidays, we had a difficult time trying to isolate the key 10-year costs and savings of different components of the legislation. Now that we have had a bit more time with the final House and Senate versions of the legislation and the CBO analyses, we wanted to present the following table:

 House BillSenate Bill
Insurance Coverage Expansion1052871
   
Minus Offsets  

Spending Cuts

352413
CLASS Act10272
Tax Increases570474
Penalties16843
Subtotal (offsets)1,1921,002
   
Deficit Reduction-138...
Monday, November 16, 2009 - 12:29 PM

For the last few weeks, members of Congress have been increasingly pushing for a bipartisan commission to tackle the nation's fiscal challenges. The impetus has been the need to raise the debt limit as the national debt rapidly approaches the $12 trillion statutory ceiling. Because legislation to raise the debt limit is must-pass, lawmakers are trying to tie commission creation to the legislative language. Senator Evan Bayh highlighted this issue in a letter to Majority Leader Harry Reid, which was co-signed by nine additional senators. The Blue Dog coalition of Democrats in the House also recently announced their support for a commission.

Last week, Budget Committee Chairman Senator Kent Conrad held...

Wednesday, November 11, 2009 - 11:01 AM

This week marks the debut of Concord's new, online budget game -- The Federal Budget Challenge.

Based on our Principles and Priorities game, which has been used for years in hundreds of classrooms and town hall meetings across the country, users work through 11 different policy categories and choose the spending and tax policies that fit their preferences while being mindful of their budgetary effects.

Developed in partnership with the California-based non-profit Next 10, this online tool tracks the effect of individual policy choices on interest costs and the projected 10-year budget deficit as the choices are made. The game has already been mentioned in The Wall Street Journal and The New York Times.

It is important to point out what this game is and isn't. The...

Thursday, November 5, 2009 - 4:18 PM

The news from Thursday’s Washington Post:

The Senate voted Wednesday to renew the government’s $8,000 tax credit for first-time home buyers through the first six months of next year as part of a broader bill designed to extend unemployment benefits.

For the first time, the tax credit program would also enable many homeowners who buy a new primary residence to receive a $6,500 refund.

The measure was attached to a bill that would provide 20 weeks of unemployment benefits in more than two dozen states with jobless rates above 8.5 percent and up to 14 weeks elsewhere. Another provision in the bill would allow businesses that had operating losses in 2008 and 2009 to seek refunds for taxes paid on profits over the past five years.

Why this legislation now?  Because despite signs that the economy as a whole, as measured by GDP, is growing again, most American households are still feeling the pain of a very weak labor market which all economists expect will be unusually slow to recover this time around.  Hence, the extension of unemployment benefits is easy to justify.

But what about the ...

Monday, October 19, 2009 - 10:23 PM

I have written a lot in this blog about the Congressional Budget Office and their estimates (here is the latest example). Today, the Washington Post has another great article explaining the process.

Reading it, I thought about how many things we do here at Concord that depend on CBO. We have been working over the last few weeks updating all of our education exercises with CBO information and data. Next week we will be unveiling a new online budget game that also is based on CBO publications. As is our plausible baseline, chart talks and many of our issue briefs.

We do this not because CBO can see the future, but because having a neutral umpire (especially one easily searchable online!), makes what we have to say stand out--because we don't have to spend as much time worrying or...

Sunday, August 30, 2009 - 8:53 PM

The first definition of “plausible” on dictionary.com is:

plausible
[plaw-zuh-buhl]

having an appearance of truth or reason; seemingly worthy of approval or acceptance; credible; believable: a plausible excuse; a plausible plot.

Note that it doesn’t say “likely” or “probable”–it connotes the notion of possibility not probability. I bring this up because many folks, especially the media, want to interpret the “Concord Coalition Plausible Baseline” as our best forecast of what the fiscal outlook will turn out to be. No, we’re not saying that’s the most likely outcome; we’re saying that’s a plausible, possible outcome. And it’s a worst-case scenario, because that’s what we do at Concord: we warn about the possible really bad outcomes if we don’t start making more responsible choices–because we don’t want them to happen.

On Saturday's front page of the Washington Post...

Tuesday, August 25, 2009 - 12:14 PM

Throughout the day, Concord will be releasing new items related to today's budget numbers released by the CBO and OMB.

For immediate reactions, check out our Twitter feed.

Our new Concord Plausible Baseline Chart with its backup data can be found on our baseline page.

A press release is in the works (it is up now--JG), but for now a few interesting statistics:

  • Our baseline, which is based on the CBO baseline and extends current policy, shows a $14.4 trillion in additional deficits over the next 10 years.
  • By 2019, debt held by the public will pass 100% of GDP (102%)
  • In 2019, interest on the debt will cost over $1 trillion. At 5% of GDP, that will be more than spending on National defense or domestic discretionary programs.

More soon...

...in the...