The GOP loves to talk about how bad deficits are and the importance of fiscal responsibility. But just go back 10 years, when Bush and the GOP took power in 2000. Clinton left him a huge budget surplus, and then the GOP quickly blew it like a drunk at the track by giving top income earners a huge tax cut. The tax cuts are set to expire this year, and Republicans want to extend them, especially to the rich.
This is insanity. If you reduce revenue by cutting taxes, it clearly will create a deficit. Of course, thats not what were being told. After blocking the extension of unemployment benefits, Sen. John Kyl, R-Ariz., said, You do need to offset the cost of increased spending, and thats what Republicans object to. But you should never have to offset cost of a deliberate decision to reduce tax rates on Americans.
Thats their message; now lets hear from the adults. David Stockman, budget director under Reagan, said a Republican effort to extend the unaffordable Bush tax cuts would amount to a bankruptcy filing. He also called extending the tax breaks not fiscal responsibility, but vulgar Keynesianism robed in the ideological vestments of the prosperous classes.
Obama and most Democrats want to keep the tax cuts for individuals earning less than $200,000 and let the tax cuts for the rich expire. Former Fed chief Alan Greenspan weighed in on the conservative argument that tax cuts pay for themselves by generating revenue and productivity among recipients.
They do not, Greenspan said.
The Center for American Progress, using data from the CBO and the Joint Committee on Tax, estimates tax cuts for the rich could add $680 billion to the nations debt over the next 10 years.
Pay attention this fall. The GOP will say Obama, Pelosi and Reid want to raise your taxes, so give the keys back to the drunk. But the fact is that the only Americans the Democrats want to raise taxes on are the rich. In my opinion, thats fine.
Bill Vana, Durango