Why Republicans Aren’t Serious About Reducing the Deficit

By: inoljt, http://mypolitikal.com/ 

Republicans talk a good game about why the United States must reduce its debt. Republican Congressman Paul Ryan:

We face a crushing burden of debt. The debt will soon eclipse our entire economy, and grow to catastrophic levels in the years ahead.

On this current path, when my three children — who are now 6, 7, and 8 years old — are raising their own children, the federal government will double in size, and so will the taxes they pay.

No economy can sustain such high levels of debt and taxation. The next generation will inherit a stagnant economy and a diminished country.

Frankly, it’s one of my greatest concerns as a parent — and I know many of you feel the same way.

Mr. Ryan then proposed a plan whose purpose is purportedly to solve America’s debt problems. To its credit, this plan cuts trillions of dollars in spending. It bravely – or cruelly, depending on your political orientation – cuts the sacred Medicare program.

But then Mr. Ryan’s plan does something very strange, at least if its purpose is to reduce the deficit.

To cut the deficit one has to cut spending and raise taxes. Supply-siders argue that cutting taxes will lead to more revenues raised. Perhaps in a world in which taxation levels are at 90% or 70% that is true, but right now in the United States we’re definitely not at that level (the highest tax bracket is currently 35%). So one have to raise taxes to solve the deficit.

Instead of raising taxes, however, Mr. Ryan cuts trillions of dollars in taxes in his plan.

This is not something unique to this particular Republican. As a whole, the Republican Party steadfastly refused to allow a single dime in revenue increases during the debt ceiling debate. It proudly advocated extending the Bush tax cuts for everybody before that. Fighting against tax increases is a very core element of the Republican program today. The Republican Party does this because it goes against their philosophy of small government.

Now, that’s absolutely fine; there’s nothing wrong with arguing against tax increases. The Republican Party believes that America should lower taxes and lower spending. That’s a philosophy that it will try selling to the American people during election time, and then America will have a debate over that philosophy.

But there is a problem when Republicans sell their proposals as a way to solve the deficit. Cutting taxes and cutting spending does not solve the deficit anymore than “tax and spend liberals” do. Cutting taxes increases the deficit. That’s simply a fact (unless taxes are 70%, which they aren’t in this country).

The Ryan proposal, like most Republican proposals, is a proposal to change America to be more like what Paul Ryan wants America to be like. That may be a better America or a worse America. I personally believe that enacting Ryan’s plan hurts America; many Americans, for very valid reasons, believe that it helps America.

But when Mr. Ryan – or other Republican politicians – sells his proposal as a way to cut the deficit, that’s disingenuous. The plan simply isn’t a way to cut the deficit; it has too many trillions of deficit-raising tax-cuts inside it. It’s fine for Mr. Ryan to advertise his plan as the Republican vision of what America should be like. It’s not fine for him to advertise the plan as a way to cut the deficit. That’s not what Republicans really want; otherwise they would be willing to accept tax increases.

All in all, any Republican who’s not willing to increase taxes is not serious about cutting the deficit, full stop. And since almost no Republican nowadays will agree to tax increases, then the Republican Party as a whole really isn’t serious about reducing America’s debt. It certainly talks a good game. But when push comes to shove, what the Republican Party really wants is to change American to be more like it’s vision of what America should be like (rather than cut the deficit). That’s absolutely fine on its merits. Just don’t pretend that you’re trying to reduce the deficit when you do that.

 

 

Why Republicans Aren’t Serious About Reducing the Deficit

By: inoljt, http://mypolitikal.com/ 

Republicans talk a good game about why the United States must reduce its debt. Republican Congressman Paul Ryan:

We face a crushing burden of debt. The debt will soon eclipse our entire economy, and grow to catastrophic levels in the years ahead.

On this current path, when my three children — who are now 6, 7, and 8 years old — are raising their own children, the federal government will double in size, and so will the taxes they pay.

No economy can sustain such high levels of debt and taxation. The next generation will inherit a stagnant economy and a diminished country.

Frankly, it’s one of my greatest concerns as a parent — and I know many of you feel the same way.

Mr. Ryan then proposed a plan whose purpose is purportedly to solve America’s debt problems. To its credit, this plan cuts trillions of dollars in spending. It bravely – or cruelly, depending on your political orientation – cuts the sacred Medicare program.

But then Mr. Ryan’s plan does something very strange, at least if its purpose is to reduce the deficit.

To cut the deficit one has to cut spending and raise taxes. Supply-siders argue that cutting taxes will lead to more revenues raised. Perhaps in a world in which taxation levels are at 90% or 70% that is true, but right now in the United States we’re definitely not at that level (the highest tax bracket is currently 35%). So one have to raise taxes to solve the deficit.

Instead of raising taxes, however, Mr. Ryan cuts trillions of dollars in taxes in his plan.

This is not something unique to this particular Republican. As a whole, the Republican Party steadfastly refused to allow a single dime in revenue increases during the debt ceiling debate. It proudly advocated extending the Bush tax cuts for everybody before that. Fighting against tax increases is a very core element of the Republican program today. The Republican Party does this because it goes against their philosophy of small government.

Now, that’s absolutely fine; there’s nothing wrong with arguing against tax increases. The Republican Party believes that America should lower taxes and lower spending. That’s a philosophy that it will try selling to the American people during election time, and then America will have a debate over that philosophy.

But there is a problem when Republicans sell their proposals as a way to solve the deficit. Cutting taxes and cutting spending does not solve the deficit anymore than “tax and spend liberals” do. Cutting taxes increases the deficit. That’s simply a fact (unless taxes are 70%, which they aren’t in this country).

The Ryan proposal, like most Republican proposals, is a proposal to change America to be more like what Paul Ryan wants America to be like. That may be a better America or a worse America. I personally believe that enacting Ryan’s plan hurts America; many Americans, for very valid reasons, believe that it helps America.

But when Mr. Ryan – or other Republican politicians – sells his proposal as a way to cut the deficit, that’s disingenuous. The plan simply isn’t a way to cut the deficit; it has too many trillions of deficit-raising tax-cuts inside it. It’s fine for Mr. Ryan to advertise his plan as the Republican vision of what America should be like. It’s not fine for him to advertise the plan as a way to cut the deficit. That’s not what Republicans really want; otherwise they would be willing to accept tax increases.

All in all, any Republican who’s not willing to increase taxes is not serious about cutting the deficit, full stop. And since almost no Republican nowadays will agree to tax increases, then the Republican Party as a whole really isn’t serious about reducing America’s debt. It certainly talks a good game. But when push comes to shove, what the Republican Party really wants is to change American to be more like it’s vision of what America should be like (rather than cut the deficit). That’s absolutely fine on its merits. Just don’t pretend that you’re trying to reduce the deficit when you do that.

 

 

Assessing Republican Seriousness on the National Debt

A bit ago Representative Paul Ryan of Wisconsin made the Republican response to President Barack Obama’s State of the Union address.

Mr. Ryan’s speech focused heavily on the national debt, which he declared as a one of his “greatest concerns as a parent.” The representative used the example of his three children to emphasize the grave importance of the issue, which was the main theme of his speech.

Mr. Ryan’s call to reduce the national debt, while necessary and useful, was also somewhat lacking in specifics – because many of the specific actions required to reduce the debt either are unpopular, or go against the priorities of the Republican Party.

Take, for instance, the extension of the Bush tax cuts. A true deficit hawk would be horrified at extending these tax cuts; doing so adds an estimated 4 trillion dollars to the debt over the next decade. Indeed, Mr. Obama’s former budget director stated that, “If we actually ended the Bush-era tax cuts, that would pretty much do it [balance the budget],”

Despite Mr. Ryan’s purported concern over the national debt, he and almost the entire Republican Party supported extending these tax cuts.

Now, there is absolutely nothing wrong with doing this; most Americans, the president himself, and this blogger were with Mr. Ryan on extending the Bush tax cuts. There are legitimate reasons to do so. One may believe in the value of tax cuts, or in the value of stimulating the economy.

But to support adding 4 trillion dollars to the debt over the next decade, and then to make a speech calling the national debt the greatest threat to the country’s future, is a tad hypocritical.

There is another way to test Republican seriousness on the national debt.

Many Republicans like to call for cutting spending and reducing the size of government as a way to reduce the national debt.

This is quite reasonable. In fact, let’s talk about the most wasteful part of America’s government. Today the United States lavishes hundreds of billions of dollars on this bloated organization – an organization which is very often ineffective at doing what it is supposed to do, yet constantly screams for more money and is given that money by politicians on both sides of the aisle.

I am talking, of course, about the military.

America spends six times more on the military than any other nation on Earth. Of the top ten military budgets in the world, the U.S. and its allies (France, the United Kingdom, Japan, Germany, and Italy) compose 79.8% of the money spent on the military.

There is quite a bit of waste in this spending, too. Take the infamous F-22, a $65 billion program which was finally ended in 2009. The F-22 was originally envisioned to fight high-level Soviet planes two decades ago. Each plane cost approximately $44,000 to fly for one hour. Despite spending $65 billion on the F-22, the plane was never been used once in combat – not a single time.

This is the very definition of wasteful government spending that Republicans like to complain about.

If one is serious about reducing the debt, a great way to start is by cutting military spending. Military spending, for instance, is ten times what the federal government spends on education every year.

Unsurprisingly, however, Republicans have no plans anytime soon to reduce military spending.

If one adds just these two items together – extending the Bush tax cuts, and refusing to cut military spending – one gets ten trillion dollars over ten years, which the Republicans have declared off-limits in their attempt to reduce the debt. That’s a lot of money that can be saved, but which Republicans refuse to due to their ideological priorities.

In Mr. Ryan’s rebuttal to the president, he said the following words:

Our debt is out of control. What was a fiscal challenge is now a fiscal crisis.

We cannot deny it; instead we must, as Americans, confront it responsibly.

And that is exactly what Republicans pledge to do.

So much for that.

--Inoljt, http://mypolitikal.com/

 

Assessing Republican Seriousness on the National Debt

Recently Representative Paul Ryan of Wisconsin made the Republican response to President Barack Obama’s State of the Union address.

Mr. Ryan’s speech focused heavily on the national debt, which he declared as a one of his “greatest concerns as a parent.” The representative used the example of his three children to emphasize the grave importance of the issue, which was the main theme of his speech.

Mr. Ryan’s call to reduce the national debt, while necessary and useful, was also somewhat lacking in specifics – because many of the specific actions required to reduce the debt either are unpopular, or go against the priorities of the Republican Party.

Take, for instance, the extension of the Bush tax cuts. A true deficit hawk would be horrified at extending these tax cuts; doing so adds an estimated 4 trillion dollars to the debt over the next decade. Indeed, Mr. Obama’s former budget director stated that, “If we actually ended the Bush-era tax cuts, that would pretty much do it [balance the budget],”

Despite Mr. Ryan’s purported concern over the national debt, he and almost the entire Republican Party supported extending these tax cuts.

Now, there is absolutely nothing wrong with doing this; most Americans, the president himself, and this blogger were with Mr. Ryan on extending the Bush tax cuts. There are legitimate reasons to do so. One may believe in the value of tax cuts, or in the value of stimulating the economy.

But to support adding 4 trillion dollars to the debt over the next decade, and then to make a speech calling the national debt the greatest threat to the country’s future, is a tad hypocritical.

There is another way to test Republican seriousness on the national debt.

Many Republicans like to call for cutting spending and reducing the size of government as a way to reduce the national debt.

This is quite reasonable. In fact, let’s talk about the most wasteful part of America’s government. Today the United States lavishes hundreds of billions of dollars on this bloated organization – an organization which is very often ineffective at doing what it is supposed to do, yet constantly screams for more money and is given that money by politicians on both sides of the aisle.

I am talking, of course, about the military.

America spends six times more on the military than any other nation on Earth. Of the top ten military budgets in the world, the U.S. and its allies (France, the United Kingdom, Japan, Germany, and Italy) compose 79.8% of the money spent on the military.

There is quite a bit of waste in this spending, too. Take the infamous F-22, a $65 billion program which was finally ended in 2009. The F-22 was originally envisioned to fight high-level Soviet planes two decades ago. Each plane cost approximately $44,000 to fly for one hour. Despite spending $65 billion on the F-22, the plane was never been used once in combat – not a single time.

This is the very definition of wasteful government spending that Republicans like to complain about.

If one is serious about reducing the debt, a great way to start is by cutting military spending. Military spending, for instance, is ten times what the federal government spends on education every year.

Unsurprisingly, however, Republicans have no plans anytime soon to reduce military spending.

If one adds just these two items together – extending the Bush tax cuts, and refusing to cut military spending – one gets ten trillion dollars over ten years, which the Republicans have declared off-limits in their attempt to reduce the debt. That’s a lot of money that can be saved, but which Republicans refuse to due to their ideological priorities.

In Mr. Ryan’s rebuttal to the president, he said the following words:

Our debt is out of control. What was a fiscal challenge is now a fiscal crisis.

We cannot deny it; instead we must, as Americans, confront it responsibly.

And that is exactly what Republicans pledge to do.

So much for that.

--Inoljt, http://mypolitikal.com/

 

Diaries

Advertise Blogads