Greg Mankiw has proposed cutting the budget deficit by writing him a check for $1 Billion and financing that check with $3 Billion in taxes.
Mankiw is correct that his bill cuts the deficit but of course it does so only with job killing tax increases.
Should Greg’s proposal pass – as I fear it might – I propose that we repeal his law and instead replace it with a $500 Million job saving tax credit available only to me, Karl Smith.
My proposal not only does away with the wasteful spending and big government intrusions in Greg’s bill but it cuts taxes for the American people and sets us on the path to prosperity and eventually a balanced budget.
You may argue that my bill does nothing to balance the budget. But then you haven’t been following the debate on Cutgo, under which only increases in government spending should concern deficit hawks.
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Thursday ~ January 20th, 2011 at 9:14 pm
jazzbumpa
What is amusing – in an appropriately dismal sort of way, I suppose – is that social programs have never – Absolutely NEVER – been a major contributors to deficits in this country. Deficits, until just now, resulted from two things, and two things only:
1) Military spending, including both actual shooting wars and idiotic fantasies like Reagan’s Star Wars,
http://jazzbumpa.blogspot.com/2009/08/republicans-all-wrong-all-time-pt-1.html
2) Tax cuts.
http://jazzbumpa.blogspot.com/2010/12/right-wing-talking-point-refuted.html
Now, for the first time since that other depression we have
3) deficits due to reduced tax receipts resulting from A LOUSY ECONOMY.
http://jazzbumpa.blogspot.com/2010/11/that-deficit-thang.html
Real data points to to these conclusions.
Interestingly, Viet Nam did NOT lead to huge deficits. Taxation kept revenue in line with expense.
http://jazzbumpa.blogspot.com/2011/01/deficits-in-viet-nam-era.html
Cheers!
JzB
Saturday ~ January 22nd, 2011 at 10:50 pm
teageegeepea
Every kind of spending and every lost dollar of tax revenue “contributes” to a deficit. Though it is usually defense spending which is somehow ignored as if it’s not spending.
From what I heard, Fannie Mae was spun out as a GSE rather than straight government program precisely so that it would not count toward the deficit.
Saturday ~ January 22nd, 2011 at 5:57 am
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