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.