NTU urges all Representatives to vote“YES” on H.R. 3578 the “Baseline Reform Act of 2011.” Introduced by Rep. Woodall (R-GA), this bill would reformthe calculation of the budgetary baseline by eliminating automatic inflationincreases and certain other spending-hike mechanisms to provide a truerreflection of year-to-year expenditures.
Theinclusion of inflation in the determination of discretionary appropriationscreates a fiscal context that distorts the impact of annual reductions orincreases. For instance, using Washington’s current construct, a spendingincrease can be labeled a “cut” if it would lead to outlays that are lower thanthe “baked-in” inflation assumption. A similar issue arises on the revenue sideof the ledger because the tax baseline assumes the expiration of the 2001 and2003 tax rates. This allows some policymakers to reach the nonsensicalconclusion that simply maintaining current tax rates is a $4 trillion tax cut.
TheBaseline Reform Act would address the biased notion that discretionary spendingwill increase by inflation each year and require the Congressional BudgetOffice to prepare a baseline assuming the extension of current tax policies.These two changes would help to level the budgetary playing field that iscurrently tilted toward higher spending, while also making it clearer totaxpayers the exact impact of certain spending or tax proposals.
Roll call votes on H.R. 3578 will be significantlyweighted in our annual Rating of Congress and a “YES” vote will beconsidered the pro-taxpayer position.
If you have any questions,please contact NTU Federal GovernmentAffairs Manager Brandon Greife at (703) 683-5700