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Thursday, September 15, 2005

Deficit Madness

This is yet another call, this time in a guest commentary at the NRO Financial, to cut dividend taxes, capital gains taxes, estate taxes, and whatever else is possible politically, even after Katrina. Yet in this entire 719 word essay there is not a single word about how to pay for the deficit by cutting programs or raising taxes, only vague inferences that cutting taxes pays for itself.  Do they honestly believe that cutting taxes will eliminate the deficit?  There’s nothing in the past to suggest that will work. And if they don’t truly believe that revenues will increase, then this is a hidden agenda to force cuts in the size of government down the road by intentionally creating a budget crises.  Either way, I would like to see writers such as this one begin to tell us precisely how they believe their ideas will be funded.  Not some vague idea about how cutting taxes raises revenue, but let’s hear the specifics, let’s hear a real plan.  How much revenue will be generated and when?  What programs will be cut?  Because so far all that has happened is that the budget hole has gotten deeper and deeper with each new vague promise of tax-cut induced government prosperity:

Tax Cuts Are Katrina Relief, by Mallory Factor, NRO: Hurricane Katrina wrought a devastating human tragedy. The White House and congressional leaders are rightly rushing to help. But they should not do so at the expense of the free-enterprise agenda… The politically correct notion that it is insensitive to continue with vital pro-growth policies in the aftermath of Katrina hurts the nation generally and has an adverse impact on the people most in need of help. Promoting economic growth and prosperity is important, now more than ever... In the last two years, the economy has grown by about $1.5 trillion, which is a tribute to President George W. Bush’s 2003 tax cuts. Keeping that pie growing will make it possible to offer more to New Orleans... In fact, [we] should go further by adding some form of immediate death-tax relief to the reconciliation bill. … Policymakers should reject the notion that high taxes are needed to pay for reconstruction. Even a generous disaster-relief package is little consolation to a person who can’t find work when the economy falters... We are now committed as a country to generously and compassionately rebuilding the hurricane zone and replacing what was lost. The price tag will be high, perhaps as high as $200 billion. That’s real money, and we need a healthy, growing U.S. economy to help pay for it... With rapid economic growth, a price as high as $200 billion is more affordable... This is not the time for ... high tax rates, including the expiration of the 2003 tax cuts. This is not the time to destroy family farms and businesses ... It is not inconsiderate to underscore the vital need for policies promoting economic growth and prosperity in the wake of tragedy. It would be inconsiderate not to.

 

    Posted by on Thursday, September 15, 2005 at 02:34 PM in Budget Deficit, Economics, Press | Permalink  TrackBack (0)  Comments (6)

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