Friday, December 3, 2010

That Deficit Commission

They have been getting some air time on TV. They want to do a tax hike by just eliminating deductions, mortgage interest is the big one. They claim to have some spending cuts.
Question: Are these real spending cuts, or fake spending cuts? Real spending cuts happen when the agency gets less money next year than it got last year. Real spending cuts are very rare. Fake spending cuts are when the agency gets less than it asked for. This game is really old, and the agencies always ask for much more than they expect to get, on the theory that what they do get will be enough so they don't have to do layoffs.

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