Fix the Federal Spending Baseline First

Of late there has been controversy among budget wonks as to whether lawmakers should use a “current law” or “current policy” baseline to score the effects of tax reform in the budget process. Though this is a prototypically arcane procedural fight, it bears enormous implications for federal finances. The Committee for a Responsible Federal Budget (CRFB) has sounded an alarm against the possible use of a current tax policy baseline, calling it a “gimmick” that would add enormously to federal debt. The competing argument is typified by a recent column from Manhattan's own Brian Riedl, who finds that a current tax policy baseline is necessary for consistent treatment of taxes and spending.