August 11, 2014 – President Obama has signed a $10.8 billion measure that will fund highway and bridge repairs for the next 10 months. The short-term measure, approved by lawmakers last month, is paid for using a budgeting maneuver called pension smoothing, which allows corporations to reduce their contributions to employee retirement plans. By allowing companies to do so, the government can boost tax revenues since companies are no longer eligible for tax deductions. This patch is necessary, but would be unnecessary, if Congress would put aside its bitter partisanship, get off its butt and do something.
A 10-Month Band-Aid
- Written by Mark Kuhar