You can almost hear
the screeching, 180-degree turn in political strategies in Washington.
With Vermont Sen. James Jeffords' abrupt
exit from the Republican Party, the White House is preparing
for an all-out wooing of Majority Leader Tom Daschle. Republican
senators are starting a "have you hugged a moderate today?"
campaign.
The most dramatic shift, though, will be
in the changing of the Democratic game from defense to offense.
Counter to conventional wisdom, this is not
an enviable position. Furthermore, it may well be the straw
that breaks the back of the short-lived era of fiscal discipline.
For five months, the Republicans governed
under pretty much ideal budget circumstances. They had the gift
of trillions of surplus dollars to play with and even while
pushing for a preposterously large tax cut, they could argue
that they were leaving enough money (just barely) to reduce
the debt to the lowest possible level.
Now that it is the Democrats' turn, they
too may become complicit in the raiding of the surpluses. None
of the items on their agenda -- from a prescription-drug plan
to long-term health care to more cash for education, agriculture
and the environment -- come cheap. And now that the tax cut
has been passed, there is even less money to pay for them.
For the Dems to take any meaningful action
on any of their priorities, there will be only two approaches
to pay for these programs: Roll back the tax cut or dip further
into whatever may or may not be left of the surpluses.
The first option is, of course, the more
responsible. The current $5.6 trillion national debt is estimated
to reach $6.7 trillion in 10 years, and that is without either
a tax cut or any new federal programs. To increase the debt
further will do substantial harm to the economy, and leave younger
generations with a truly outrageous bill to pay.
A fiscally responsible politician would have
pointed out long ago that there is actually little room for
tax cuts or spending increases in a country that continues to
rack up hundreds of billions of dollars of debt. At the very
least, one would hope Democrats would forge some type of compromise
by scaling back the tax cut and using the savings partially
for new spending and primarily for debt reduction.
The trade-offs between tax cuts and new spending
would require tough decisions, but in forcing those choices
it would create a better link in taxpayers minds between the
costs and the services the government provides.
For instance, would we rather repeal the
estate tax or create a prescription-drug program? Double the
child credit or increase funding for education? Reduce the highest
tax rates or implement new energy and environmental programs?
These are not necessarily easy decisions,
but ones that should be made in a responsible budget.
Unfortunately, political realities are what
they are, and opposing tax cuts before they are passed -- a
battle Democrats already lost -- is a lot easier than supporting
their repeal.
Therefore, the far more likely scenario is
that Democrats will take a page from the Republican tax-cut
playbook, obfuscating the true costs of their spending proposals,
phasing them in over time and using budget gimmickry to reduce
their apparent costs.
And you can bet that the same Democrats who
wanted to "trigger" tax cuts as a way to scale them back if
they grew too large, will oppose any such mechanisms for their
own potentially budget-busting spending initiatives.
Republicans, not relishing the idea of being
on record as opposing education or prescription drugs, particularly
with the contentious 2002 elections just around the corner,
will grudgingly go along. Once the programs have passed, they
will continue on, whether or not the surpluses to pay for them
ever materialize.
And this may well be the end of the tale
of the short-lived surpluses.
In what could turn out to be a new low for
honest budgeting and responsible policies, each party will have
taken its turn at spending away the surpluses (possibly more
than once), while the other, for fear of voter retribution,
looked away.
Once the true costs of the marriage of huge
tax cuts and new government spending emerge with an eerily Reaganesque
ring, the country will be left with large budget deficits once
again -- certainly not the path Jeffords hoped for when he divorced
his party.
Copyright 2001, San Francisco Chronicle
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