Revive Gramm-Rudmann

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Jonathan Rauch | February 13, 2005

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The bit about taxes is anathema to the president and many conservatives, who view extending Bush's tax cuts as essential. Bush wants paygo budget rules that place limits on spending increases only, not on tax cuts. Other conservatives prefer a measure that would limit annual spending growth to adjustments for inflation and population growth. Several states are debating such measures (called TABORs, for Taxpayer Bill of Rights), and Colorado has enacted one. Conservatives are talking about introducing a federal equivalent this year, perhaps in the spring.

Rules requiring offsets and rules limiting spending growth both have good and bad points; but either might work best in addition to, rather than instead of, a rule targeting the deficit and backed by brutal spending cuts, a la Gramm-Rudman. The budget rules could help Congress meet the deficit targets, and the deficit targets could help enforce the budget rules. "One of the things about Gramm-Rudman was that it was understandable, and you had concrete goals," says Stephen Moore, a senior fellow in budget affairs at Cato. "With deficit targets that you have to meet, people can judge—did they meet them or not?"

One can be excused for imagining that Bush is none too serious about the deficit targets in his 2006 budget. Perhaps his concentration might improve if Congress were to write his projected five-year deficits into law and back them with the threat of sequestration. That is not a good idea, if "good" means anybody's first choice. On the other hand, Niskanen says, "I think it's likely to be a better idea than what Mr. Bush is trying to get away with now. He's saying 19 percent of the budget is going to be very tight. Even if he accomplishes that, that does not yield very significant budget effects."

There are times when the nation needs wisdom, times to summon the spirits of Lincoln and Jefferson. There are other times, too: times to call upon the spirits of Beavis and Butt-head. Deficit targets are crude, ugly, and senseless. Nothing less will do.

© Copyright 2005 National Journal

Jonathan Rauch is a senior writer and columnist for National Journal and a frequent contributor to Reason. This article was originally published by National Journal.