The Ryan budget fraud is even worse after you read it

Paul_RyanBy Robert Romano

A $63.2 billion proposed increase in spending canceling almost 35 percent of the sequester cuts scheduled for 2014 and 2015 will be offset by just a $6.25 billion cut to spending and a $269 million increase of revenue in those years, reports the Congressional Budget Office (CBO).

The other $78.5 billion of so-called “deficit reduction” to be achieved under the proposal will not occur until 2016 through 2023, including $28 billion of proposed cuts to defense and non-defense spending that are not set to occur until 2022 and 2023.

“The supposed out year cuts are simply a cynical insult to taxpayers who now know that when push comes to shove, the cuts will not be kept,” Americans for Limited Government President Nathan Mehrens warned in a statement issued after the deal was announced.

“This is just one more example of how out of touch our national leaders are to the real priorities of the American public,” he added.

The eleventh hour deal struck by lawmakers will reduce the defense sequester by 41 percent for 2014 ($22.4 billion) and by 17 percent ($9.2 billion) in 2015, and the non-defense sequester was reduced by 61 percent for 2014 ($22.4 billion) and by 25 percent in 2015 ($9.2 billion).

Meaning even the spending increases called for in cancelling sequestration will disproportionately favor non-defense spending, just as cuts in the original sequester disproportionately hit defense spending.

But that’s not the only whopper in this grand bargain. It allegedly “reduces the deficit by $23 billion and it does not raise taxes. It cuts spending in a smarter way,” declared House Budget Committee Chairman Rep. Paul Ryan (R-Wisc.), who brokered the deal.

Doesn’t increase taxes, you say?

Besides the $6.6 billion of increased revenues CBO scores, tucked into the package is $12.6 billion over ten years from a fee of “$5.60 per one-way trip in air transportation or intrastate air transportation that originates at an airport in the United States” that was somehow magically scored not as revenue, but as a spending cut. Huh?

You got that right. In what universe is that a spending cut? It doesn’t matter. The next time you book a round-trip flight and it is $11.20 costlier, remember you’re not actually paying a tax, you personally are reducing federal spending — even though the provision itself does nothing to actually reduce transportation security spending.

Similarly, almost $7.9 billion of increased premiums paid into the Pension Benefit Guaranty Corporation is scored as a spending cut. So are about $6.8 billion of higher customs user fees collected in 2022 and 2023.

Just those three items total $25.9 billion — a full one-third of the supposed $78.4 billion of spending cuts are no cuts at all, but fee increases.

And, again, another $28 billion of cuts won’t occur until the 117th Congress, seated in 2021, meets to decide the 2022 and 2023 budgets. That is, if sequester has not been fully repealed by that time.

The other $24 billion of cuts are legitimate, but again, the American people will have to wait for $20 billion of them to be implemented in the out years starting in 2016.

Is postponing spending cuts really a “smarter” way to cut spending if those cuts never end up happening?

Immediately, spending will increase dramatically and air travelers will be hit with an average $1.2 billion tax hike every year.

House Speaker Rep. John Boehner (R-Ohio) called the proposal “modest,” and blasted conservative groups he said “came out opposed to it before they ever saw it.”

And maybe they did. But in their defense, the Ryan budget fraud is even worse after you take the time to read it.

Robert Romano is the senior editor of Americans for Limited Government. 

This article has 29 comments
  • WhiteFalcon 12.12.2013 10:18 AM

    Robert Romano is exactly correct when he says that the proposed cuts that are to take place several years down the road will never be made, but I will guarntee that the increased taxses and increased spending will occur, and very likely ahead of schedule. The life of this budget is until Januay of 2015, and then it is dead. Any cuts that don’t occur now will never happen. I have seen this happen time after time over the past many years.

  • steveegg 12.12.2013 11:12 AM

    It gets even worse if one reads the explanation from the CBO on the unscored effects to discretionary spending of several provisions:
    - The entirety of the $3 billion “savings” from eliminating mandatory payments to nonprofits that service student loans will be added right back on the discretionary side of the spending ledger.
    - The reduction in the COLA increases for the under-62 military retiree crowd will make possible spending in other areas because accrual payments to the Military Retirement Fund are scored as intragovernmental transactions, and as such, a decrease in such payments allows for a dollar-for-dollar increase in spending elsewhere. It is unclear just how much that is, but it is potentially as much as $6 billion.
    - The new “self-plus-one” health benefit option means the “self-plus-family” option will become more expensive, and while retirees’ health benefits (expected to disproportionately transition to the “self-plus-one” option versus current employees) are spent using direct appropriations, current employees’ health benefits are spent using discretionary appropriations. I expect the entirety of the $3 billion in direct-spending reduction to be offset by a $3 billion increase in discrectionary spending.

  • pduffy 12.12.2013 11:35 AM

    “bureaucracy” – rule by unelected bureaucrats. More proof that the taxpayers have no representation, we are ruled by a bureaucratic behemoth . Congress acts in the interest of the government bureaucracy because they are government employees. They do what their masters that run the bureaucracies want, and don’t even know who their so-called constituents are. I have written many letters to my congressman and have never once received a reply because I don’t write his paycheck, the ‘bureaucrats’ do. They are his master, and he follows their commands.

  • darylj46 12.12.2013 12:09 PM

    Tell me that their not all in bed together from Obama on down

  • okseabat 12.12.2013 2:32 PM

    As can be seen the politicians in both poop houses of congress are not changing their stripes but just changing the direction the run. Their colors and spots are still are the same (yellow) and their rhetoric the same old lie. It is time to rid the house and senate of all incumbents to rid our congress of all the self serving criminals that reside there and pretend to represent the people. The executive is appointing more anti American radicals to represent and advise him on how to further destroy the constitution, the economy and the survivability as constitutional republic. All the leaders in all three branches need jail time for their fraud and misappropriation and spending of the American people’s tax money.

  • Mad Mike 12.12.2013 3:58 PM

    Why not just “kick the can” to, say, 2080? Why not? The country won’t exist then anyway, it’ll be long gone, another 3rd world “hell hole” of crushing poverty, starving populations, zero healthcare or any benefits, save the “services” of a mandated federal sucide center. Set up for citizens who can no longer work. For the old, the lame, and mentally deficient. All money and resources long gone, spent by those “insane communist democrats” way back in 2014!

  • Don39 12.12.2013 6:58 PM

    Once again the people who actually pay the bills have been shafted by the left with the aid of the RINO traitors! If the bill should fail to pass the leftist Senate it will be only because the knife in the back is not deep enough or needs more twisting. Wake up America . the Republic no longer exist, you have been sold down the river while you slept by the political traitors and your only chance to save the Constitutional Republic is via revolution!

  • Poppo 12.12.2013 9:55 PM

    I used to thank God that I am old and will not live to see the complete destruction of our Republic. Now I am afraid that our final downfall will be within the next 2 or 3 years and I will actually be a spectator!

  • Poppo 12.12.2013 9:55 PM

    One snake, two heads!

  • Poppo 12.12.2013 9:59 PM

    The Ruling Elite has learned to do exactly what they want, then lie to us about what they did. There are so few of us that are paying attention that they just keep getting elected. They have finally killed the Golden Goose.

  • GeneP54 13.12.2013 1:18 AM

    Ryan had better hope that the Senate doesn’t go for this or that this will tide him over until the next elections. Folks are finally realizing he’s a snake in the grass just like the rest of them.

  • DON THE BRITTON 13.12.2013 7:55 AM

    Any doubt that this country only has a one party system has now been erased. The GOP has just funded all of Obama socialist plans for the rest of his current term. They have also teamed with the unions to defeat Tea Party candidates. The sleazy Republicans don’t even have the decency to tell the voters what they stand for, they let the Democrats take the heat from conservatives while they continue to support them behind the scenes. Notice that Republicans claim to support pro life but never advance criminal laws to prevent it. They are always talking about fiscal responsibility but are always advancing increased government spending through inaction and making the Democrats take the heat from conservative. NO ONE IS MORE DESPICABLE THAN AN ESTABLISHMENT REPUBLICAN. WATCH THEY WILL PROBABLY EVEN ALLOW PRESIDENTIAL TERM LIMITS TO BE REPEALED.

  • Doug 13.12.2013 10:55 AM

    This was a cowardly act by republicans and will pretty much do in the party as far as I am concerned.

  • Tbear 13.12.2013 11:07 AM

    Once again the veterans and the taxpayers take it up the a _ _ !!!!.
    ‘Thank You’ RINO’s

  • JH 13.12.2013 11:18 AM

    THE POLITICAL PROCESS IN THIS COUNTRY IS DEAD!!! I hope all of you out there who actually understand what is going on in the Federal government also understand what will have to happen to return this country to a constitutional republic! All of you out there who rather watch football than become truly informed and actively engaged in the political process will be the ones who are gobbled up in the tumultuous societal upheaval when the Republicans and Democrats finally bankrupt this country! When you cannot afford or simply cannot get a loaf of bread or a gallon of milk, you WILL become the victims of the anarchy that will reign in the United States.

  • regulus30 14.12.2013 11:35 AM

    spineless, weak cowardly RINO REPUBLICANS;;;;;;;;;;;;;;;;;THEY must go in 2014 and the insider repubs are going to run against us,, let’s take them down ;; NO MONEY TO THE RNC OR THEIR AFFILIATES;; Tea Party > org only. they will either get on board or NEVER WIN ANOTHER ELECTION ;;COMMUNISM/PROGRESSIVISM IS THE SAME NO MATTER which DC party is in control; and maybe as this country is destroyed by the progressive clowns, some day the real America’s will rise up and take them down;;;;;;;;;;;;BALLOTS OR BULLETS WASHINGTON ;”YOU CHOOSE”.

  • regulus30 14.12.2013 12:59 PM

    unfortunately most are to ignorant or timid to call a spade a spade;; we are officially being ruled by one party ;”PROGRESSIVES/COMMUNISTS”.

  • regulus30 14.12.2013 1:01 PM

    it IS GOING TO TAKE A REVOLUTION TO BREAK THIS big government down and return power to the state/people.we must look for OUR “PATRICK HENRY”.;; ballots or bullets?.

  • Debra 14.12.2013 2:19 PM

    I bought a load of copies of “AGENDA: GRINDING AMERICA DOWN”, an excellent documentary about the communist agenda plowing through our Country today. You can catch it on UTube if you haven’t seen it already. I pass them out to anyone who will listen, even to strangers I meet in passing. And i ask them to pass it along to the next citizen. It makes me feel better than calling my corrupt congressman menendez. And it’s a real wake-up call to the viewer.

  • regulus30 14.12.2013 2:32 PM

    thank you for joining the fight; we must carry on;; the left is being exposed and we must finish the job once and for all.all their money [george soros / van jones] and their media minions will not stop this revolutionary awakening of WE THE PEOPLE; LIKE OUR communist buddies on the Megan page trying to tie my comment to Sandyhook;; ballots or bullet it is one or the other;; and we have the guns, libs.

  • George Blumel 14.12.2013 5:55 PM

    This was sent to him in response to an appeal for $$$ from his
    “Prosperity PAC.”
    Rep. Ryan,
    You can’t understand just how disappointed we rank-and-file Republicans are with your betrayal of us and especially of our children and grandchildren.
    We’re active in Repub politics on the local level –I’m a member of our
    REC in the county and communicate regularly with those in my district and as
    members of several other organizations, on a state level. Yes, it is a betrayal because giving in again to increased taxes and spending is bad enough but to cave-in on the sequester –our only spending cut we’ve seen—was
    just too much since we got nothing in return..

    Our contributions and our recommendations to our fellow Repubs here in Florida will be to support only those who voted against the business-as-usual tax and spend budget that increases the debt and continues to depress the economy.

    Also, we’ll be supporting challengers to incumbent Repubs who have been there too long and vote to go along to get along with the spenders to make their lobbyists happy and help insure reelection.

    We had higher hopes for you. No more.

  • Bill 14.12.2013 6:24 PM

    Maybe, but you are not supposed to read it until after you vote on it.

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