William McBride of the Tax Policy Blog once again explains that the primary cause of the increasing deficit is spending cuts and not the Bush tax cuts:
The CBO does not mince words. Health care spending is at the core of our budget deficits, and any serious discussion should address that. For more on why health care spending is quite literally out of control, consider Uwe Reinhardt’s excellent primer on Medicare spending and the so called ‘doc fix’. Nonetheless, some partisans choose to focus on the Bush tax cuts as the cause of projected deficits. In response, we again use CBO data to show that the main culprit is spending increases, followed by economic fluctuations. The Bush tax cuts come in a distant third.
Be sure to read the entire post which explains in detail the CBOs conclusions.
Of course, none of this will stop the demagogues on the left from misleading the public as to the role of the Bush tax cuts in the creation of the deficit.
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2 responses so far ↓
1 Sergio // Jun 24, 2011 at 7:21 am
Here’s what I posted on my FB Wall on this very topic:
“When someone has a problem–let’s say drinking problem, do we encourage them to drink more or drink less? Why is it when government has a spending problem do we entertain ideas to give it more money by increasing taxes??? Why not tell government–as we would our friend, you should probably spend/drink less?
”
2 Peter // Jun 24, 2011 at 10:31 am
Sergio,
Thanks for visiting.
The answer is that government is big business and when you reduce its size a lot of people lose power.