New GOP House Rules –
Krugman: “But the joke’s on us because while this kind of magical thinking may not yet be the law of the land, it’s about to become part of the rules governing legislation in the House of Representatives.
As the Center on Budget and Policy Priorities points out, the incoming House majority plans to make changes in the “pay-as-you-go” rules — rules that are supposed to enforce responsible budgeting — that effectively implement Mr. Kyl’s principle. Spending increases will have to be offset, but revenue losses from tax cuts won’t. Oh, and revenue increases, even if they come from the elimination of tax loopholes, won’t count either: any spending increase must be offset by spending cuts elsewhere; it can’t be paid for with additional taxes.
So if taxes don’t matter, does the incoming majority have a realistic plan to cut spending? Of course not.”
GOP budget plans cuts to discretionary programs, and there is “no there there.” Since they exclude defense spending, there is not enough money to be saved even with the 15-20% cuts sought by the GOP. If the entirety of discretionary spending (sans defense) were cut to zero, the effect on the deficit would be nearly de minimus.
