The overall budget picture in Washington remains bleak as lawmakers have left town without making any meaningful progress on the appropriations process. They are now anticipating a September scramble to approve a Continuing Resolution (CR) to keep the government open after the new fiscal year begins Oct. 1. This means Congress, yet again, would be falling back on legislation that indiscriminately maintains the funding levels of the previous year, with little or no attention to the necessity of increased or decreased funding levels for important programs.
The overall budget picture in Washington remains bleak as lawmakers have left town without making any meaningful progress on the appropriations process. They are now anticipating a September scramble to approve a Continuing Resolution (CR) to keep the government open after the new fiscal year begins Oct. 1. This means Congress, yet again, would be falling back on legislation that indiscriminately maintains the funding levels of the previous year, with little or no attention to the necessity of increased or decreased funding levels for important programs.
The long-term outlook is even more dire. The Congressional Budget Office (CBO) issued yet another warning recently about the enormous pressures on the federal budget over the next 30 years. Just to maintain the current level of federal debt as a share of the economy, the nonpartisan budget office warns, would require large-scale spending cuts and/or tax increases every single year until 2046.
It would stand to reason that the nation’s leaders would focus on such a significant problem at this critical time. Unfortunately, many of them — along with other political candidates — have done the exact opposite and are pandering to voters with unrealistic promises of giant tax cuts and major benefit increases, even for upper-income beneficiaries.
Many candidates are offering simplistic solutions to pay for their promises.
In the midst of these unfortunate circumstances, however, it’s important not to lose all hope. Here are three positive signs of fiscal life in the Capitol over the past few weeks that deserve attention:
1. A Plan to Improve Social Security’s Benefit Structure
As the Bipartisan Policy Center noted recently, reform of the windfall elimination provision (WEP) is one improvement to Social Security’s benefit structure that Republicans and Democrats appear to agree on, and the House’s tax-writing panel may consider changes to the provision this fall.
The provision was established in the early 1980s to ensure a fair and accurate calculation of public sector workers’ Social Security benefits, but the provision has become overly complex in recent years.
The Equal Treatment for Public Servants Act (HR 711) seeks to streamline the WEP calculation by bringing it more into line with a public-sector worker’s actual earnings history.
Although the Ways and Means Committee postponed consideration of the measure recently, action on WEP reform appears likely this year. The Committee should consider WEP options that help to reduce deficits in addition to streamlining benefits.
2. Rep. Reid Ribble’s “Save Our Social Security Act”
A more comprehensive approach to Social Security reform was taken in Rep. Reid Ribble’s “Save Our Social Security Act.” The bill is the broadest legislative attempt to tackle the long-term imbalances in Social Security’s financing and benefit structures Congress has seen in years. Ribble (R-Wis.), along with colleagues from both parties, introduced the measure last week to improve the solvency of Social Security.
The bill makes some difficult choices, from raising payroll subject to the Social Security tax to 90 percent, to lifting the full retirement age from 67 to 69. The plan, however, also includes measures to protect current retirees as well as the most vulnerable beneficiaries. All of the changes would be phased in over several years, the early retirement age would remain 62, and many seniors most in need would see their benefits expanded.
Concord’s Executive Director Robert L. Bixby said the measure was “distinguished by courageous common sense and the recognition that any Social Security reform will require political compromise.”
The bill certainly points in a far better direction than current policy.
3. A “Fiscal State of the Union” Proposal
Rep. John Carney (D-Del.) and Rep. Jim Renacci (R-Ohio) released a proposal to require an annual presentation to Congress by the U.S. comptroller general — the government’s chief auditor — on the state of the nation’s finances, including the drivers of long-term deficits.
The proposal received the support of 24 members of the House’s Bipartisan Working Group. Concord’s Bixby praised the proposal, saying it “could serve as a catalyst for the kind of bipartisan action necessary to put America on sounder fiscal footing.”
While many elected officials continue to ignore the nation’s fiscal challenges, a few lawmakers on both sides of the aisle are doing what they can to fix the problems. They deserve praise for bucking the trend toward fiscal irresponsibility.
