Sequestration cuts are the talking points in today's message from the field of Democrats out beating the drums to whip up the people against the opposition. We have a three and one half Trillion dollar budget and the sequestration cuts will amount to about eighty-five billion dollars. That counts for a little over two percent of the total budget. Not only that, the cuts are not going to be real cuts, they are just a reduction in the proposed spending that represents an increase in spending. It is like my boss asking me what my budget for my shop needs for next year. I look at my budget for this year and see I spent ten thousand dollars. I figure in inflation, projects I want to do during the next year so I tell my boss I will need a budget of twenty thousand dollars. He considers that and says I can have only fifteen thousand dollars for the new year. So I complain to all my staff that we are cutting fifty percent of the budget in our shop and the sky is going to fall on our head.
In reality, of course, I will not only spend the ten thousand dollars I spent last year, but I will spend an additional five thousand dollars for a total of fifteen. From my perspective I have "lost" five thousand from my budget for next year even though I received fifty percent more than last year. So the so-called cuts are only on paper, not real cuts on programs. It is what the politicians are wanting to spend above and beyond the budget they have had in the past that has driven up the deficit to over 16 Trillion dollars.
The plan to fix the problem offered by the Administration: Raise the taxes, again. Does that really make any sense?