As Washington considers ways to rein in the deficit, Republicans have obstinately demanded that any tax revenue increases be taken off the table, claiming that raising taxes during a down economy would doom the recovery. As evidence, they often point to the presidency of Ronald Reagan, claiming his massive 1981 tax cuts caused that decade’s economic boom. But this anti-tax position makes it almost impossible to do anything serious about the deficit, since — despite GOP talking points — the country has a revenue problem, not a spending problem. On ABC’s This Week today, Reagan’s own budget director, David Stockman, exposed the GOP tax cut “theology” for the ahistorical sham it is. Asked by Reuter’s Chrystia Freeland if the economy could “sustain” a tax increase, Stockman said “absolutely,” noting that the economy only recovered under Reagan once he raised taxes in 1982 after “cut[ting] taxes too much” the year before:
WASHINGTON, May 1 (UPI) -- Tax cuts and two recessions are the primary culprits in the current U.S. budget deficit, a Congressional Budget Office analysis says.
The CBO report concludes that despite public perceptions, increases in spending on foreign and domestic programs accounted for about 15 percent of the deterioration of the budget since 2001 when the budget was balanced.
The Washington Post said Sunday a very promising outlook for the economy in 2001 got the better of both parties and resulted in a no-win scenario of spending increases and expanding wars in Iraq and Afghanistan at the same time taxes were being reduced.
Wrongly positioned tax cuts don't work as proved over and over again.... the middle class is the economic engine that drives this country yet there are some that repeatedly want to give tax breaks that help those who when receive them, do little to help the economy.
There's a good interview w/Stockman in the current issue of reason magazine ([url=http://www.reason.com" onclick="window.open(this.href);return false;]www.reason.com[/url])
To suggest that our government does not have a spending problem is ludicrous. Even the Fed says this rate of spending is unsustainable.
Raise taxes on the rich all you want, but until the tax codes are changed it will accomplish little.
Stopping this ridiculous rate of spending (budget) and quit "losing" billions on off-shore contracts and wasteful spending (accountability) - that's a start.
As a friend recently said, "Greed and selfishness combined with stupidity is more deadly than an atomic bomb. Take a look at the history of all successful revolutions and what you will see is that the first thing that happened at the end is the eradication of the current ruling class. Washington insiders need to be treated like smallpox or BSE. Unless that cancer is cut from the body of the USA nothing will change."
OmniScience wrote: To suggest that our government does not have a spending problem is ludicrous. Even the Fed says this rate of spending is unsustainable.
Raise taxes on the rich all you want, but until the tax codes are changed it will accomplish little.
Stopping this ridiculous rate of spending (budget) and quit "losing" billions on off-shore contracts and wasteful spending (accountability) - that's a start.
