Friday, July 29, 2011

Is There a Redeeming Value in Boehner V2.0?

The Boehner V2.0 (which today will become V2.1) is not entirely bereft of redeeming values.

Here's an explanation of the "out-years" savings which is useful.

...the worry about front-loading versus back-loading spending is somewhat misplaced. Of course I wish the upfront cuts were bigger (currently $22 billion in year one). But considering the plan as it stands is a long-shot to become law, I’m not sure how much play we have here. Besides, the main reason the cuts are back-loaded isn’t political per se, it’s mathematical. Current law assumes that spending on program x will increase at rate y every year for the next ten years. If you freeze spending on program x or even retard its growth, the real dollar value of the cut is thus greater in the out years. It’s as simple as that.

In addition, the Boehner plan does not contemplate any tax increases.

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