Dakota Beacon

Now that congress, including North Dakota’s congressional delegation, voted us into a catastrophic fiscal hole, everyone agrees reducing the national debt is a good thing.

But wait! Didn’t Obama, Pomeroy, Conrad and Dorgan assure us that their proposed health care “reform” bill was based on its deficit neutrality? They knew otherwise and didn’t tell us. Even the Congressional Budget Office didn’t believe the neutrality argument and said so.

Long before a final health care vote, in January 2010, Obama and congressional leaders prepared the way by agreeing to convene a debt commission that will propose recommendations targeting the reduction of the national debt.

The National Commission on Fiscal Responsibility and Reform (NCFRR -- there’s that word “reform” again) will assess all government programs including Social Security, Medicare, Medicaid, Veterans Affairs, federal and military retirement and every federal spending program. Their goal is to propose reductions to the annual federal deficit from 10 percent to 3 percent by 2015.

In late February Obama appointed former Clinton White House Chief of Staff Erskine Bowles and former Wyoming Republican Senator Alan Simpson to co-chair the 18-member NCFRR.

The debt commission will include 8 Republicans and 10 Democrats. Six each will be named by House and Senate leaders, respectively. In addition to the two co-chairs, the remaining four will be named by the White House.

NCFRR members include presidential appointees Bruce Reed as Executive Director, Alice Rivlin, David Cote and Ann Fudge.

Senators include Max Baucus (D-MT), Kent Conrad (D-ND), Dick Durbin (D-IL), Judd Gregg (R-NH), Michael D. Crapo (R-ID) and Tom Coburn (R-OK).

Representatives include Xavier Becerra (D-CA), John Spratt (D-SC), Jan Schakowsky (D-IL), David Camp (R-MI), Paul D. Ryan (R-WI) and Jeb Hensarting (R-TX).

The first meeting will convene on April 27 in Washington, DC.

NCFRR will also suggest options to increase federal revenue. By now everyone knows that Senator Conrad proposed a value added tax (VAT) equivalent to a national sales tax or consumption tax. On May 27, 2009, in an interview with the “Washington Post” he stated, “I think a VAT and a high-end income tax have got to be on the table.” With his appointment to the NCFRR he now sits at that table.

Keep in mind, the VAT would not replace the income tax or the inheritance tax. VAT would be in addition to it. Thus, everyone ends up paying their “fair share,” even the poor.

Typically, congressmen and senators dodge the hard decisions. No matter that we expect them to make hard decisions. Remember, their first task is to get re-elected and they will not jeopardize that goal. Making unpopular decisions is a fast track to retirement. Rule #1: Do the legislative damage, then run and hide behind a commission. What courage!

Other attempts to avoid unpalatable political decisions over the years met with varying degrees of success. Multiple iterations of the Base Realignment and Closure (BRAC) process relieved congress from making tough decisions. BRAC’s objective was to achieve the government goal of closing and realigning military installations despite unpopular fallout. Grand Forks AFB is an example. BRAC recommendations were bundled in packages and voted on en masse by congress without amendment. That gave legislators political cover. The Pentagon proposed the same money-saving recommendations individually over the years but congress did not have the courage to act. BRAC’s fifth iteration was completed in 2005.

On the other hand, the 1994-1995 Bipartisan Commission on Entitlement and Tax Reform, on which Senator Simpson sat, failed to reach consensus on its recommendations. No matter. Politicians went their merry way in congress attempting to enact the recommendations piecemeal with varying degrees of success.

NCFRR’s deadline for recommendations is December 1, 2010, and that could prove a challenge. If it is any consolation, 14 of the 18 members must agree on all proposed recommendations. That kind of agreement might be difficult given the difference of opinions on the commission.

Regardless of the commission’s recommendations, the first session of the 112th Congress will have a new composition of members with which Obama must work.

Dennis M. Patrick can be contacted at P. O. Box 337, Stanley, ND 58784 or (JavaScript must be enabled to view this email address).