Thursday, February 23, 2012

Annals of the Obvious, Campaign Budget Edition

From the Post:
The national debt is likely to balloon under tax policies championed by three of the four major Republican candidates for president, according to an independent analysis of tax and spending proposals so far offered by the candidates.

According to the report — set for release Thursday by U.S. Budget Watch, a project of the bipartisan Committee for a Responsible Federal Budget — former Pennsylvania senator Rick Santorum and former House speaker Newt Gingrich would do the most damage to the nation’s finances. . . .  , offering tax and spending policies likely to require trillions of dollars in fresh borrowing. Both men have proposed to sharply cut taxes but have not identified spending cuts sufficient to make up for the lost cash, the report said. By 2021, the debt would rise by about $4.5 trillion under Santorum’s policies and by about $7 trillion under those advocated by Gingrich, pushing the portion of the debt held by outside investors to well over 100 percent of the nation’s economy.
Until recently, Romney wasn't doing as badly. But then he decided that to win the nomination he had to be as crazy as his competition:
The red ink would gush less heavily under former Massachusetts governor Mitt Romney, the report said — at least under earlier Romney proposals that paired $1.35 trillion in tax cuts with $1.2 trillion in spending reductions and would leave the debt rising on a trajectory that closely tracks current policies. But that probably changed Wednesday, when Romney tacked to the right and proposed to cut federal income tax rates by an additional 20 percent for all earners — an idea that could easily slash federal revenues by another $3.5 trillion over the next decade, said Edward Kleinbard, a University of Southern California law professor and former chief tax analyst for Congress.
Only a fringe libertarian like Ron Paul can even propose cutting spending by enough to pay for the tax cuts these candidates all support.

The Tea Party song has been "spending is the problem, spending is the problem" but the reality is that cutting taxes makes the deficit go up. Period.

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