They don’t get it. They really don’t get it.
Senate Budget Committee Chairman Kent Conrad, one of the six Democratic and Republican senators who have been working since December on a deficit-reduction plan, said the proposed $3.75 trillion in savings over 10 years contains $1.2 trillion in new revenues.
The group briefed about half of the 100-member Senate and “the response was very favorable,” Conrad told reporters…
According to an executive summary of the plan, it would immediately impose $500 billion in deficit cuts, cut security and non-security spending over 10 years with spending caps, make the Medicare and Medicaid healthcare programs operate more efficiently and abolish the Alternative Minimum Tax.
Read more here.
So what’s my gripe? $500 billion in immediate cuts is chump change. Future cuts are to be identified – right. The plan is vague and all the pain happens in the future, when it’s someone else’s problem. And of course, it does not deal with entitlement programs. For a more thorough analysis by someone smarter than me, read Dan Mitchell’s analysis, here.