Posts Tagged ‘debt’

Update on the Republican’s Budgetary Ideas

February 11, 2010

Previously, I said that Republican Paul Ryan had proposed a 75-year budget plan that would eliminate the federal deficits and debt over the time period.  I said that was great if that is all that you cared about.  I went on to explain that the only way he got there was by privatizing / eliminating much of the New Deal and Great Society.  But it is actually much worse than that.  When the CBO scored the plan and said it eliminated the deficits and debt, it was doing so using Ryan’s assumptions that his massive tax cuts would not decrease tax revenues (p. 4, other tax provisions)  There is no credible economist–Art Laffer is not a credible economist–who will tell you with a straight face that if you drastically cut income taxes there will be no effect on revenue.  Reagan’s tax cuts did not do it and neither did Bush’s tax cuts.  If there is a drastic reduction in tax revenue, his plan does not eliminate the deficits or the debt.  So not only does Ryan eliminate programs such as Medicare and Social Security, he does not even eliminate the debt after their elimination.