07-21-2017, 08:41 PM
(07-21-2017, 07:00 PM)Nebuchadnezzar Wrote: That is correct I think.
When they say 20% cut, it's a cut on the increase not the whole amount.
Last year, widgets was budgeted at $100.00
This year, there is a 10% increase to make the budget $110.00
Proposed budget cut is 20%
New budget for widgets will be $108.00
Is that correct?
It depends on the programs. For mandatory spending, that is typically the way they are calculating the cuts since it is difficult to cut those programs. So things like Medicare and Medicaid fall into that category. They can just talk straight cuts, though, for discretionary funds. For instance, DoD makes up about half of the discretionary budget and is a very malleable budget section. There can be more immediate cuts done to that. The reason for the difference is that some programs are set to increase at rates tied to inflation and projected for growth, not all are.
"A great democracy has got to be progressive, or it will soon cease to be either great or a democracy..." - TR
"The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little." - FDR
"The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little." - FDR
