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So we've got three budgets, but is there any overlap?

President Obama released his FY2014 budget today, and Marketplace's Washington bureau got a new doorstop.

We got President Obama’s budget today, a couple of months late. In it, the president lays out his plans for FY2014. It comes on the heels of the Senate’s budget, and the House of Representatives’ budget. 

So, we’ve got these three thick documents. Do they have anything in common? Well, they’re all in English. That’s something.

According to Ross Baker, a professor of political science at Rutgers, for the most part, the similarities end there.

“You kind of put them together side by side, and it’s sort of like setting up a dinner party for a vegetarian, a vegan, and somebody who is on the Paleo Diet and eats nothing but meat,” he says.

I spent about 20 minutes at the printer today, printing out copies of the House’s budget, the Senate’s budget, and the president’s budget. Altogether, they are 478 pages. That’s about a ream’s worth of paper. And in all that, there’s not much overlap.

We see some, Baker says, between the president’s budget and the Senate’s budget. Now, keep in mind the Senate, which is controlled by the president’s party, passed its budget along party lines.

“Both of them call for tax increases on upper-income Americans,” he says. “The Ryan budget does not have that.”

That’s the House’s budget, drafted by Rep. Paul Ryan (R-Wis.). It calls for reforms to entitlement programs, including Social Security. There’s some of that in the president’s plan, but not in the Senate’s.

Even though we have three different budgets, Matthew Shapiro says he is “cautiously optimistic.”  He is the Lawrence R. Klein Collegiate Professor of Economics at the University of Michigan. “It’s a positive step that concrete proposals are on the table,” he says.

But will any of those proposals become law? That’s anyone’s guess.

The Obama administration defends its budget tomorrow, on Capitol Hill. Here in the D.C. bureau, we’ve stacked it on top of the House’s budget, and the Senate budget, and we’ve got a new doorstop. 

About the author

David Gura is a reporter for Marketplace, based in the Washington, D.C. bureau.
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For those that have a wonkie interest, here are some references for you...

The 2014 Budget as presented...

http://www.whitehouse.gov/sites/default/files/omb/budget/fy2014/assets/b...

The Analytical Perspectives on the 2014 Budget

http://www.whitehouse.gov/sites/default/files/omb/budget/fy2014/assets/s...

and The Greenbook that Treasury issues to explain it all (almost all)

http://www.treasury.gov/resource-center/tax-policy/Pages/general_explana...

Now, there is a lot to digest in all of this, but, it is the source that Journalist use to mine for creating stories about Administration plans. So, they will notice Chained CBI proposals related to Social Security and write stories about it, but ignore other, even more significant issues on a global stage, like FATCA. Since I know this one will NOT be reported on, I want to point it out....

The Administration is planning to require US financial Institutions to provide reciprocal information that it is requiring Foreign Financial institutions back to 193 cooperating governments. IE, they are creating a domestic equivalent of FATCA, or DATCA. The huge cost of FATCA (which prior to this no one cared about as it just effected foreign institutions) is blowing back onto the U.S. Financial Entities, and that is WAY more than just banks.

THIS IS BIG, but the controversy and the cost of FATCA is generally not reported in US media, but the world certainly knows, just Americans are generally clueless about this. It has been said, and I agree, that "FATCA is the worst law that most Americans know nothing of."

In Executive Summary terms, here is what is happening...

FATCA is begetting DATCA which will beget a global GATCA

A new world order of tax data automatic exchange is being created. The BIGGEST Tax initiative in the history of the world, and it doesn't get any MSM attention in America. Oh well. If anyone reads this, now you know.

From page 202 of the Analytical Perspectives...

Provide for reciprocal reporting of information in connection with the implementation of the Foreign Account Tax Compliance Act (FATCA).—

In many cases, foreign law would prevent foreign financial institutions from complying with the FATCA provisions of the Hiring Incentives to restore Employment Act of 2010 by reporting to the IRS information about U.S. accounts.

Such legal impediments can be addressed through intergovernmental agreements under which the foreign government agrees to provide the information required by FATCA to the IRS requiring U.S. financial institutions to report similar information to the IRS with respect to nonresident accounts would facilitate such intergovernmental cooperation by enabling the IRS to reciprocate in appropriate circumstances by exchanging similar information with cooperative foreign governments to support their efforts to address tax evasion by their residents.

The proposal would provide the Secretary of the Treasury with authority to prescribe regulations that would require reporting of information with respect to nonresident alien individuals, entities that are not U.S. persons, and certain U.S. entities held in substantial part by non-U.S. owners, including information regarding account balances and payments made with respect to accounts held by such persons and entities.

OK, you have been warned... LOL

I get it, but is it funny? More tragic than funny because over half the House of Representatives (that half that didn't like the Federalism of 1787 and is still opposed to the constitutional arrangement delivered to us back then), still believes or wants to believe that national macroeconomics actually do work or should work like a household budget. And for this belief (held by no actual economists) they are willing to hold up the budget making process, costing us billions of dollars in lost revenue. Funny? Not really.

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