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Wednesday, February 20, 2013

How Do BS Tax Cuts Help With Deficit Reduction?

Via Steve Benen, if Bowles and Simpson are so serious about reducing the deficit, why does their deficit reduction plan include tax cuts?:

We talked in some detail yesterday about the flaws in the latest debt-reduction plan from former Sen. Alan Simpson (R-Wyo.) and Erskine Bowles (D-N.C.), the folks celebrated by the political/media establishment as sage voices on fiscal issues for reasons I've never been able to identify. The Simpson-Bowles 2.0 plan probably isn't going anywhere, but before we move on, Tim Noah flags a detail I'd overlooked.
It turns out, in their drive to reduce deficits, Simpson and Bowles want to lower tax rates, replacing the revenue with scaling back "most" tax expenditures. It's not unreasonable to wonder why in the world the so-called deficit hawks would do this. ... Worse, they make this recommendation without explanation. Perhaps they think it's obvious that tax cuts are a good idea.

And if they want to make that case, fine, we can have the debate and point to the flaws in their assumption. But let's not keep up the charade that Simpson-Bowles is purely about fiscal responsibility, when there's also clearly a conservative ideological goal underpinning parts of the outline.

    Posted by on Wednesday, February 20, 2013 at 09:28 AM in Budget Deficit, Economics | Permalink  Comments (28)


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