July 7, 2011
Debt Ceiling: The Trap of Budget Cuts in the 'Out Years'
President Obama is making noises about getting a multi-year deal in the upcoming debt ceiling negotiations. House Republicans should resist this -- it is a trap. The only things a Congress can control are those that happen during its own time in office. No Congress can bind another Congress. Back-loaded budget cuts that are supposed to happen years from now aren't worth the paper they're written on. Larry Kudlow addressed this issue Wednesday on The Kudlow Report in a sweet little sermon called "The Budgetary Game is a Taxpayer Scam." CNBC.com puts up videos of most of Larry's segments, but I couldn't find a video for the segment in question. Which is a pity, as Larry's delivery is terrific. But here's the transcript, and here's the last lines: Let's be honest here. This budgetary game remains one big taxpayer scam. Look, I used to work in the federal budget office. I know the game. Here's yet another scam: big budget deals say they "cut" (there's that word...(Read Full Post)