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Tax Cuts Are Free, Right? — Why Now?
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Tax Cuts Are Free, Right?

tax cuts and deficit

McClatchy chronicles the stupidity that is the “disloyal opposition” – GOP: No more help for jobless, but rich must keep tax cuts

WASHINGTON — Republicans almost unanimously oppose spending $33.9 billion for extended unemployment benefits for some 2.5 million people who’ve lost them, because they say it would increase federal budget deficits.

At the same time, they’re pushing a permanent extension of Bush administration tax cuts, especially for the wealthy, which could increase federal budget deficits by trillions of dollars over the next 10 years.

How do they justify this?

“Tax policy is dynamic. If you have the right kind of tax reform, it helps generate a more dynamic economy,” said Sen. Mike Crapo, R-Idaho, a member of the Senate Finance Committee, which writes tax law. While that may be true, even the Bush Treasury Department concluded that its tax cuts increase budget deficits.

Besides, wouldn’t providing $33.9 billion to extend unemployment benefits to 2.5 million people help the economy?

“There’s a distinction between taxes and spending,” Crapo said. “We have a huge problem with a lack of spending restraint.”

In addition, noted Iowa Sen. Charles Grassley, the committee’s top Republican, “This is a tax increase if you don’t extend, and it’s not a tax cut if you do.”

Look at the chart – the Bush II tax cuts are the number one factor in the current deficit, just like they were the number one factor in the Reagan deficit. Things were so bad that Bush I reneged on his “no new taxes” pledge to start dealing with the Reagan deficit. Bush I and Cheney, then Secretary of Defense, reduced military spending to start to rein in costs.