Budget Sequester Part II: We have seen this before

The New York Times ran an interesting trial balloon on how principled and brave legislators are planning to address the so-called “fiscal cliff” coming this January. As everyone knows, this is the time when a multitude of tax provisions expire takes place along with the budget gimmick of the budget sequester. Let us note these are the same people who put the country in the mess in the first place, along with the indifferent, disengaged President.

In any event according to the article a group of U.S. Senators is “coalescing around an ambitious three-step process to avert a series of automatic tax increases and deep spending cuts.” I wonder where we have all heard that before? http://www.nytimes.com/2012/10/02/us/senate-leaders-at-work-on-plan-to-avert-fiscal-cliff.html?hp&_r=0

In this grandiose plan, Congress would agree to a deficit reduction target, using, of course, a meaningless 10-year horizon. Using this target, Congressional Committees of legislative jurisdiction would be instructed to raise taxes through some sort of unknown tax reform and reduce entitlement programs and other government spending. In the event, the changes are not made or the process breaks down, the same sort of automatic alternative plan would go into place. In the interim, the budget authority reduction mandated by the Budget Control Act-the sequester-would not go into effect.

Excuse me if it seems this is what we have now. The only difference is the regular Committee system under this plan is taking the place of the failed “Super Committee” of last year. You remember that bi-partisan group that was to agree on ways to cut the deficit and if no agreement was reached the automatic cuts-which were delayed for a year would go into effect.

The details of all of this is a bit sketchy and there certainly is no wide spread agreement on this plan yet. However, this plan has merit to accomplish the goals of delaying or eliminating the sequester, pushing any decisions “down the road”, and taking advantage of clever budgeting in the out years to make sure none of this takes place. It is intellectually dishonest and nothing more than a way to get out of the jam and appease the constituent de jure.

I can appreciate that the predicament of the fiscal cliff is not easy to solve given the divisions in Congress and the sidelined Administration. Most every Congressman is looking for a way out. However, this is just pure rehash and if enacted in some lame duck session of Congress is doomed to fail. What is also interesting is how voters will be fooled once again that the Congress and the Administration are not serious about the deficit and have no compunction about pulling the wool over anyone’s eye in the pursuit of non solutions to real problems.