the Cato Institute, unlike some other thing tanks in Washington DC which are designed to bolster a partisan agenda, is usually pretty good with a clear explantiona, and it doesn't get much clearer than this: Budget Deal Doesn’t Cut Spending.
If Congress were serious about making a real change in how the federal budget works they would implement a zero baseline budget--that is a budget like you and I use. The budgets would start at zero every year. Right now the federal budget has a built increase every year, as much as 3 percent or more for some agencies/programs. So that is how it is possible for the government to claim they are "cutting" the budget and there is actually more money spent from year to year.
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