How the GOP Plans to Rig Congress to Embrace Trickle-Down “Voodoo Economics” - Bill Moyers
http://billmoyers.com/2014/12/04/voodoo-econ/Republicans are signaling that when they take control of the Senate in January, theyll try to change the way a key government watchdog does math. If they get their way, it will effectively put a thumb on the scale of all future legislation.
The Congressional Budget Office (CBO) informs virtually all of our political debates. Made up of non-partisan career technocrats, the CBOs most important function is to score proposed legislation, projecting how a bill would impact future budgets if it were passed. When the CBO concludes that a piece of legislation will increase future deficits, it provides a powerful argument against the measure. When they project that a proposal will shrink the governments debt, it allows proponents to claim that its the fiscally responsible thing to do. Key findings from the CBOs reports are eagerly consumed and broadly disseminated by politicians, pundits and political reporters.
A number of Republicans have called for the CBO to incorporate what US News & World Report calls a gimmick that would result in tax cuts magically paying for themselves in future CBO scores. In fact, it would likely result in the CBO claiming that even deep tax cuts for corporations and the wealthy would result in more revenues coming into the governments coffers. We could have our cake and eat it, too!
The gimmick is called dynamic scoring, and is based on economic models that purport to show that tax cuts unleash so much new economic activity that ultimately, they result in more taxes being collected.
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― Lewis Carroll, Alice's Adventures in Wonderland & Through the Looking-Glass
Wellstone ruled
(34,661 posts)trickle down smoke and mirrors shit. Dynamic Scoring=f-----the workers and transfer wealth like the 80's. Oh well,no push back from our friends in the Media.
NoJusticeNoPeace
(5,018 posts)When we all figure it out, when we all get it through our god damn thick skulls, we will all be better off.
Ruby the Liberal
(26,219 posts)1980's Laffer curve 2.0? That dog won't hunt!
nikto
(3,284 posts)To undermine America.
They are never satisfied.
jmowreader
(50,546 posts)The first, as you've guessed, is to sell the theory the Laffer Curve actually works.
The second is to pre-demonize the next Democratic president. Consider what happened when President Obama took office. One of the things Shrub Bush did to distort his numbers was to run his wars off-budget. That makes the numbers look better than they are; the only real problem with doing business that way is Section 802(a) of the Sarbanes-Oxley Act:
One of President Obama's first acts was to move the wars into the federal budget...which, as we all know, caused the deficit to skyrocket in his first year and fueled a LOT of Republican resentment against him. They would LOVE to do it again, and Dynamic Scoring, after the next Democratic president has to balloon the debt to pay it off, will do just that.