Funding Highways by Underfunding Pensions
This is the latest from the Congressional brain rust -- this time trying to find money for the Transportation Trust Fund. This time, it is Hoouse Republicans who are looking to use this trick to look like they are paying for the extension to the Transportation Trust fund. Instead of looking at rational ways of raising revenue (taxes, closing tax loopholes), they've decided that undermining America's already hemorrhaging pension system is the right place to get money to pay for our roads. But this is apparently not the first time this accounting gimmick has been floated to actually fund something. The Democrats tried using this mess into a bill to extend unemployment insurance and it was part of the funding mechanism for the last temporary Transportation Bill. Which means that this bit of business is available for some appalling bit of bipartisanship. (Even though the GOP looked at the pension smoothing plan to pay for unemployment benefits and said that it paid for nothing. Now they are all for it.) So what is Pension Smoothing?



