Automatic annual increases over a baseline is part of a legislative gimmick used by big-spenders. Any slight reduction in this automatic increase is then considered by those spenders to be a budget cut. But in reality, the budget usually has still been increased.
It’s like having spent $20,000 for an auto three years ago, that can now be had for $25,000. But you go today to the showroom intending to buy another one for $50,000, settling instead for one at $40,000, while telling your wife you just saved the household $10,000.
That picture contains lots of smoke and mirrors.
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