Leaders of the pilots' union tentatively agreed to an immediate 10percentt wage cut that would be offset by raises averaging 7.9percentt from 2003 to 2005.
Because our political leaders actually cared about the budget deficit in those days, a tax cut was not viable; any proposals that reduced revenue had to be offset by provisions that raised revenue.
And the increase in cost may be surprisingly small; it will be offset by many factors, including raising the taxable wage base, use of a large part of the current $2.4 trillion surplus, and folding in the assets of existing plans by a reasonable trade-off.
The Congressional Budget Office estimated in April that the annual cost of subsidies will rise to $23 billion next year and $95 billion in 2024, although the budget office continued to project that all the law's costs will be offset by additional revenue it raises and by cuts in other federal healthcare spending.
However, that has to be offset by the £1bn cost of raising tax allowances for the over-65s, and the £2.3bn cost of raising the child tax credit and working tax credit thresholds – all of which leaves the Treasury with a £3.7bn net gain.
The memo did not mention how much more money each employee would be paid, and it said the raises would be offset by "several other staff changes".
Mr. Bloomberg originally said that all raises had to be offset by corresponding productivity increases, but on Tuesday he acknowledged that the first-year cash payment and second-year 3percentt raise would not be financed by labor savings.
The new rules mandate that entitlement-spending increases be offset by spending cuts only — and actually bar the House from raising taxes to pay for such spending.
So if foundation hospitals raise private funds, this borrowing will be offset by reductions in the money that the government has already allocated to the NHS.
*To the extent that some taxes are raised on the middle class, can they be offset by benefits?
