:: 2.03.2004 ::
Still think the Bush administration has the right idea about the economy? Read this article and this one and you may change your mind.
CBO and OMB data show, in fact, that declines in revenues account for about three-fourths of the fiscal deterioration of the past few years. While revenues will rise some as the economy recovers, they will average only about 17.1 percent of GDP over the coming decade if the recent tax cuts are extended and AMT relief is continued. (The Administration’s budget shows a somewhat higher figure, but that figure is not meaningful, since it assumes the AMT will explode into the middle class and collect tens of billions of dollars of tax revenue each year.) The 17.1 percent-of-GDP level is below the average revenue levels for every decade in the second half of the 20th century. It is a dangerously low level for a period in which the baby boomers will begin to retire and deficits will begin to rise toward economically unsustainable levels. In other words, tax cuts are the problem, not spending. And making the tax cuts permanent will only make the problem worse. Period.
:: Deb 2:37 PM :: permalink ::
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