Alan D. Viard | The Hill
The House recently voted to adopt the new Democratic leadership’s proposed rules for the 116th Congress. Two of the rule changes may slightly improve the long-run budget outlook, and another may help avert debt-limit showdowns. But one change takes a clear step backward.
James C. Capretta | AEI Economic Perspectives
The modern budget process has been amended in several important ways since its establishment in 1974, including the introduction of caps for appropriated spending and a pay-as-you-go rule for taxes and entitlements, both of which are enforced with automatic cuts in spending if they are violated. James Capretta argues that the current process was written for a time when appropriations spending was dominant; it does not work as well with so much of the federal budget devoted to spending that occurs automatically on entitlement programs. Further, the current process does not facilitate executive-legislative agreement on budgetary aggregates, which is an important reason for instability and uncertainty in federal finances.