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Wednesday, December 11, 2013

Budget? Deal With It. -- By Jim Geraghty, National Review

Great news for everyone who was tired of the recent Republican unity over Obamacare and fantastic momentum heading into the midterm elections: House Budget Committee Chairman Paul Ryan, R-Wisc., worked out a budget deal with Senate Budget Committee Chairwoman Patty Murray, D-Tennis Shoes.

The Bipartisan Budget Act of 2013 would set overall discretionary spending for the current fiscal year at $1.012 trillion—about halfway between the Senate budget level of $1.058 trillion and the House budget level of $967 billion. The agreement would provide $63 billion in sequester relief over two years, split evenly between defense and non-defense programs. In fiscal year 2014, defense discretionary spending would be set at $520.5 billion, and non-defense discretionary spending would be set at $491.8 billion.

The sequester relief is fully offset by savings elsewhere in the budget. The agreement includes dozens of specific deficit-reduction provisions, with mandatory savings and non-tax revenue totaling approximately $85 billion. The agreement would reduce the deficit by between $20 and $23 billion.

This is not what most of us would consider a “good” deal. The deficit reduction is pretty paltry. The “non-tax revenue” includes things like raising the $2.50 per-passenger per-flight “TSA fee” on flyers, which will sound a lot like a tax hike to a lot of folks. But there is a tiny bit of pension reform for federal workers:

These sections increase federal-employee contributions to their retirement programs by 1.3 percentage points. The proposal affects new employees hired after December 31, 2013 with less than five years of service.

And there’s a bit of what we would consider to be entitlement reform in the treatment of military pensions:
This provision modifies the annual cost-of-living adjustment for working-age military retirees by making the adjustments equal to inflation minus one percent. This change would be gradually 3 phased in, with no change for the current year, a 0.25 percent decrease in December 2014, and a 0.5 percent decrease in December 2015. This would not affect service members who retired because of disability or injury. Service members would never see a reduction in benefits from one year to the next.

This, or any other long-term deal, avoids a government shutdown for the next two years. And you have to figure Barack Obama and Harry Reid are itching to have another government shutdown, as it provided the Democrats their one most optimistic political moment, just before Obamacare the Destructor appeared on the horizon.


Above: Obamacare, in marshmallow form.

....


The Ryan-Murray deal puts Obama and Reid in a box. Only a few events would be big enough to change this dynamic, and the most likely is another shutdown. But to get another government shutdown, they have to shoot down this deal – putting them on the wrong side of a happy-talk “bipartisan compromise” and making them the scapegoats for any failure to reach a deal. Sure, they could dig in and force another government shutdown, but they would get the blame for this one.

Mike Memoli nicknames it, “The Bland Bargain.” (Click link below to read more)
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