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	<title>Comments on: The Fiscal Cliff and Tortured Budget Logic of House Rs</title>
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	<link>http://jaredbernsteinblog.com/the-fiscal-cliff-and-tortured-budget-logic-of-house-rs/</link>
	<description>Facts, Thoughts, and Commentary</description>
	<lastBuildDate>Tue, 21 May 2013 17:19:09 +0000</lastBuildDate>
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		<title>By: Joe Marinaro</title>
		<link>http://jaredbernsteinblog.com/the-fiscal-cliff-and-tortured-budget-logic-of-house-rs/#comment-167586</link>
		<dc:creator>Joe Marinaro</dc:creator>
		<pubDate>Thu, 10 May 2012 19:49:21 +0000</pubDate>
		<guid isPermaLink="false">http://jaredbernsteinblog.com/?p=5070#comment-167586</guid>
		<description><![CDATA[Historic spending averages ~18% of GDP. Spending historically runs around 21%. Due to the recession and tax incentives including the Bush cuts spending has risen dramatically and revenues have fallen dramatically.

How about getting both in-line? Republicans can always point to the fact that real spending cuts essentially never happen. There always seems to be a legislative make good that reduces or eliminates any real reduction in actual spending (NOT a reduction off of the spending trajectory!!!). Their fear is that a paper spending cut just won&#039;t materialize while tax increases immediately (often ex post facto even!) take effect.

Somehow we need to find a path that encompasses real spending cuts so that necessary tax increases (on EVERYONE) are balanced and mitigated by corresponding spending cuts and are locked in.

The problem is that when tax increases are booked and revenues increase, the government somehow, someway finds a way to spend that money (guess where the SS &quot;trust fund surplus&quot; went?).

Set specific revenue and spending targets as a % of GDP and stay to those limitations on both sides of the ledger. You want to raise taxes that will increase revenues by 2% of GDP? Then you have to reduce spending by a corresponding 2% of GDP.]]></description>
		<content:encoded><![CDATA[<p>Historic spending averages ~18% of GDP. Spending historically runs around 21%. Due to the recession and tax incentives including the Bush cuts spending has risen dramatically and revenues have fallen dramatically.</p>
<p>How about getting both in-line? Republicans can always point to the fact that real spending cuts essentially never happen. There always seems to be a legislative make good that reduces or eliminates any real reduction in actual spending (NOT a reduction off of the spending trajectory!!!). Their fear is that a paper spending cut just won&#8217;t materialize while tax increases immediately (often ex post facto even!) take effect.</p>
<p>Somehow we need to find a path that encompasses real spending cuts so that necessary tax increases (on EVERYONE) are balanced and mitigated by corresponding spending cuts and are locked in.</p>
<p>The problem is that when tax increases are booked and revenues increase, the government somehow, someway finds a way to spend that money (guess where the SS &#8220;trust fund surplus&#8221; went?).</p>
<p>Set specific revenue and spending targets as a % of GDP and stay to those limitations on both sides of the ledger. You want to raise taxes that will increase revenues by 2% of GDP? Then you have to reduce spending by a corresponding 2% of GDP.</p>
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		<title>By: perplexed</title>
		<link>http://jaredbernsteinblog.com/the-fiscal-cliff-and-tortured-budget-logic-of-house-rs/#comment-167468</link>
		<dc:creator>perplexed</dc:creator>
		<pubDate>Thu, 10 May 2012 17:17:58 +0000</pubDate>
		<guid isPermaLink="false">http://jaredbernsteinblog.com/?p=5070#comment-167468</guid>
		<description><![CDATA[This is how propaganda works. Why the surprise? http://billmoyers.com/episode/full-show-big-money-big-media-big-trouble/]]></description>
		<content:encoded><![CDATA[<p>This is how propaganda works. Why the surprise? <a href="http://billmoyers.com/episode/full-show-big-money-big-media-big-trouble/" rel="nofollow">http://billmoyers.com/episode/full-show-big-money-big-media-big-trouble/</a></p>
]]></content:encoded>
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		<title>By: Jared Bernstein</title>
		<link>http://jaredbernsteinblog.com/the-fiscal-cliff-and-tortured-budget-logic-of-house-rs/#comment-167301</link>
		<dc:creator>Jared Bernstein</dc:creator>
		<pubDate>Thu, 10 May 2012 13:03:07 +0000</pubDate>
		<guid isPermaLink="false">http://jaredbernsteinblog.com/?p=5070#comment-167301</guid>
		<description><![CDATA[Now you understand why my head hurts so much.]]></description>
		<content:encoded><![CDATA[<p>Now you understand why my head hurts so much.</p>
]]></content:encoded>
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		<title>By: Michael</title>
		<link>http://jaredbernsteinblog.com/the-fiscal-cliff-and-tortured-budget-logic-of-house-rs/#comment-167298</link>
		<dc:creator>Michael</dc:creator>
		<pubDate>Thu, 10 May 2012 12:59:21 +0000</pubDate>
		<guid isPermaLink="false">http://jaredbernsteinblog.com/?p=5070#comment-167298</guid>
		<description><![CDATA[Dude, they&#039;re Republicans.  It&#039;s just meat noises.]]></description>
		<content:encoded><![CDATA[<p>Dude, they&#8217;re Republicans.  It&#8217;s just meat noises.</p>
]]></content:encoded>
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		<title>By: NP</title>
		<link>http://jaredbernsteinblog.com/the-fiscal-cliff-and-tortured-budget-logic-of-house-rs/#comment-167105</link>
		<dc:creator>NP</dc:creator>
		<pubDate>Thu, 10 May 2012 06:18:34 +0000</pubDate>
		<guid isPermaLink="false">http://jaredbernsteinblog.com/?p=5070#comment-167105</guid>
		<description><![CDATA[The saddest thing about the whole segment was the apparent &quot;authority&quot; with which Kudlow makes his baseless assertions. It is hard to believe that a supposedly serious financial/political commentary program can make completely incorrect statements on broadcast TV without some sort of federal oversight. I commend you on beating your head against that brick wall - keep up the good fight.]]></description>
		<content:encoded><![CDATA[<p>The saddest thing about the whole segment was the apparent &#8220;authority&#8221; with which Kudlow makes his baseless assertions. It is hard to believe that a supposedly serious financial/political commentary program can make completely incorrect statements on broadcast TV without some sort of federal oversight. I commend you on beating your head against that brick wall &#8211; keep up the good fight.</p>
]]></content:encoded>
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		<title>By: cm</title>
		<link>http://jaredbernsteinblog.com/the-fiscal-cliff-and-tortured-budget-logic-of-house-rs/#comment-166908</link>
		<dc:creator>cm</dc:creator>
		<pubDate>Wed, 09 May 2012 23:50:45 +0000</pubDate>
		<guid isPermaLink="false">http://jaredbernsteinblog.com/?p=5070#comment-166908</guid>
		<description><![CDATA[Tortured vocabulary, too.

Invariable is not the same as inevitable, even in adverbial form.]]></description>
		<content:encoded><![CDATA[<p>Tortured vocabulary, too.</p>
<p>Invariable is not the same as inevitable, even in adverbial form.</p>
]]></content:encoded>
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