The Cut, Cap And Balance Two-Step (Part 2)Posted: 30 July 2011
Usually I take the weekend for some Zen….but the debt thing is keeping me from clearing my mind of the numbing effect of American politics…….
With the “CUT” section behind us….I will turn to the “CAP” portion of the evening……once again I will let FleetAdmiralJ of Blue Wave News explain this section…..in case you have the patience of a oversexed rabbit you can go to blogroll and get the whole thing at one time…..and if that is too difficult then try this……http://bit.ly/mRYhLS
Title II: “Cap”
Section 201(a), as far as I can tell, removes section (c)(4) from this piece of the US Code, which eliminates certain discretionary budget categories, including “highway category,” “mass transit category,” “conservation spending category,” “Federal and State Land and Water Conservation Fund sub-category,” among others. I don’t think this prohibits funds from being spent for these things, but it appears to eliminate them as distinct budget categories. It then adds to the US Code, this:
“The term ‘GDP’, for any fiscal year, means the gross domestic product during such fiscal year consistent with Department of Commerce definitions.”
Section 201(b) then limits total outlays (both on and off budget) to:
- 21.7% of GDP in 2013
- 20.8% of GDP in 2014
- 20.2% of GDP in 2015
- 20.1% of GDP in 2016
- 19.9% of GDP in 2017
- 19.7% of GDP in 2018
- 19.9% of GDP in 2019, 2020, and 2021
Just as comparison, federal outlays for the past 40 years have averaged at about 20.6% of GDP, though FY 2009 and FY 2010 averaged at 24.4% of GDP.
Finally 201(b) says that if outlays are over, sequestration measures should be taken, though Medicare, Social Security, military pay, military retirement, veterans benefits, and national debt interest are exempt.
Read the last paragraph! And then tell me what is left to cap? Oh, let me guess….such non-essentials as education? There are only so many programs left and the ones that are will do little to balance anything……