Anytime Congress needs to obtain a cost estimate, an economic impact analysis, and/or other types of budget and/or economic information, Congress is legally required to turn to its own internal think tank on economic issues, the officially non-partisan Congressional Budget Office (CBO).
However, the Republicans that won control of both houses of Congress in last November’s elections are about to turn the CBO into a part of their far-right propaganda machine that will probably be one of the most hyperpartisan government agencies in the entire country.
The director of the CBO is currently Douglas Elmendorf, who has run the CBO quite well for the past several years, having originally been appointed by a Congress controlled completely by Democrats in 2009 and then continuing on as CBO director even after Republicans took control of the House after the 2010 midterm elections. However, with Republicans now in control of both the House and the Senate, the House Speaker (more than likely to be John Boehner) and the Senate President Pro Tempore (which will be Orrin Hatch), who are jointly responsible for appointing the CBO director, will almost certainly get rid of Elmendorf and replace him with a new CBO director that will likely be very conservative and use the CBO to spew right-wing lies about the economy and the country’s finances.
What the Republicans want to do is appoint a new CBO director who will turn the officially non-partisan agency into a right-wing, non-partisan in name only agency and use dynamic scoring, a disproven economic theory that is based on the falsehood that cutting taxes for the wealthy results in more revenue to the federal government:
AS Republicans take control of Congress this month, at the top of their to-do list is changing how the government measures the impact of tax cuts on federal revenue: namely, to switch from so-called static scoring to “dynamic” scoring. While seemingly arcane, the change could have significant, negative consequences for enacting sustainable, long-term fiscal policies.
Such proponents (of dynamic scoring) argue that conventional projections are skewed against tax cuts, because they do not consider that cutting taxes could lead to higher economic output, which would make up at least some of the lost revenues. They maintain that dynamic scoring will, therefore, be both more neutral and more accurate than current methodologies.
In reality, the whole concept of dynamic scoring is built on a mountain of lies and false assumptions about how the economy and taxation work:
But the bigger problems lie deeper. Federal deficits are on an unsustainable path (as it happens, because of undertaxation, not excessive spending). Simply cutting taxes against the headwind of structural deficits leads to lower growth, as government borrowing soaks up an ever-increasing share of savings.
The most optimistic dynamic models get around this by assuming that the world today is in fiscal equilibrium, where the deficit does not grow continuously as a percentage of gross domestic product. But that’s not true. If you add the reality of spiraling deficits into those models, they don’t work.
To make these models work, scorekeepers must arbitrarily assume either that we tax more and spend less today than is really the case…or assume that a tax cut today will be followed by a spending cut or tax increase tomorrow. Economists describe such a move as “making counterfactual assumptions”; the rest of us call it “making stuff up.”
In reality, dynamic scoring encourages absurd economic policies that would decrease the amount of revenue the federal government receives, drive up the federal budget deficit and national debt, hurt economic growth, and wreck our country’s economy. The fact that Republicans want to turn the officially non-partisan Congressional Budget Office into a part of the hyperpartisan right-wing propaganda machine in order to lie to the American people about how legislation effects the economy and our country’s finances absolutely scares me, and Democrats need to start attacking the CBO at every opportunity if they do start acting like a right-wing organization.