Scott Liddicoat

Incentives.  You might say life is nothing but incentives.  But for sure, politicians and government are all about incentives.  Countless taxes, regulations, grants, and subsidies are authorized to encourage or discourage certain public behaviors.  Don’t smoke.  Buy an EV.  Get the vaccine.  Wear a mask.  Buy a home. Go to college.

Wear a seat belt. Hire from specific demographics.  Use certain businesses for your project.  Etc.  Etc.  Etc.  Etc.

The politicians proclaim success every time they control us this way.  But their self-proclaimed success must prevent them from comprehending how little they regulate their own behavior.  And how little discipline they possess in performing the responsibilities required for their jobs.

Their lack of discipline is deliberate.  Consider for example, how well they follow their own prescribed “budget” process.  It’s not a great process.  Businesses (entities that have to budget and spend responsibly) consider it laughable.  But it is their process.  Federal politicians created and adopted it. Passed in 1974, the Congressional Budget Act (CBA) set up an orderly, advance planning process for government to follow.  The President is scheduled to send Congress a budget each year in February.  Congress is then expected to adopt a Budget Resolution by April 15^th, providing a general taxing and spending plan for the next fiscal year. 

The House and Senate tailor the plan, negotiating among themselves and with the President.  The required product is twelve, detailed individual “regular appropriations” bills.  Congress and the President are supposed to sign all twelve  before October 1^st, which is the start of the new federal fiscal year.

But since adopting the CBA fifty-one years ago, they’ve clearly learned to manipulate it by passing Continuing Resolutions.  Each CR simply permits more deficit spending at current levels.  The last time the budget process was followed properly was 1996.  Since then, we’ve run budget deficits 26 times, racking up $32 trillion in federal debt.

Just as clearly, the politicians won’t change until their incentives change.  Here are three political incentives that must be put in place for the federal government budget process to work.

1.  Whenever the government is “shutdown,” (budget process not completed by October 1^st and no Continuing Resolution), Congress, the President, and their assigned staff are not paid.  Their pay and benefits during a shutdown are lost to them forever.

This is fair since they’re shirking their basic constitutional responsibilities during a shutdown.  If losing their pay teaches politicians a little humility that would be good, too.

2.  Whenever the government is “shut down,” tax collections don’t have to be sent to the IRS.  Taxes are still collected, but they may be held back and interest earned on them by the business entities involved.  Once the shutdown is over (budget process completed or a Continuing Resolution passed), tax collections that were held back must be submitted within a month.

3.  When the government is operating under a Continuing Resolution (budget process not completed by October 1^st but with a CR in place), Congress, the President, and their assigned staff are not paid.  Back pay and benefits are restored to them once the budget process for the fiscal year is completed.

These are reasonable provisions, and they position strong incentives in just the right places. 

Remember, it’s been 28 years since the last time the budget process was followed properly.  Also remember, in that time we’ve run deficits 26 times for a total of $32 trillion in additional federal debt. Politicians have every incentive to continue this way.  They’ve operated most of the last 28 years under one Continuing Resolution or another.  Under a CR, they spend as they go, never having to match expenditures to tax revenue or to a budget plan.  Operating this way, brazen deficit spending on anything and everything they want has become their way of life. 

There’s nothing to stop them as they score political points (in other words, votes) with each deficit dollar they create and spend.  They’re fully paid every day no matter what. 

Ask yourself, why should money continue to flow to the government during a government shutdown? Why should the politicians continue to be paid when they aren’t doing their jobs? Then ask yourself, would we have much trouble with the budget process if the political incentives recommended above were in place?

Our politicians have corrupted the federal budget process.  These reforms are needed.  Do we have a willing and strong enough citizenry (you and me) to demand politicians apply the incentives recommended here to themselves?  The kinds of incentives the politicians use on us all the time. 

saltwatertea.org 10/27/25