Thread: The reason we should cut spending before raising taxes

Writing in the Wall Street Journal, Peter Ferrara of the Institute for Policy Innovation explains that Washington budget deals don’t work because politicians never follow through on promised spending cuts. This is a very relevant argument, since President Obama’s so-called Deficit Reduction Commission supposedly is considering a deal featuring $3 of spending cuts for every $1 of tax increases (disturbingly reminiscent of what was promised — but never delivered — as part of the infamous 1982 TEFRA budget scam).

Washington’s traditional approach to balancing the budget is to negotiate an agreement on a package of benefit cuts and tax increases. President Obama’s deficit commission seems likely to recommend just this strategy in December. The problem is that it never works. What happens is the tax increases get permanently adopted into law. But the spending cuts are almost never fully adopted and, even if they are, they are soon swept away in the next spendthrift budget. Then — because taxes weaken incentives to produce — the tax increases don’t raise the revenue that Congress initially projected and budgeted to spend. So the deficit reappears.

In 1982, congressional Democrats promised President Ronald Reagan $3 in spending cuts for every dollar in tax increases. Reagan went to his grave waiting for those spending cuts. Then there was the budget deal in 1990, when President George H.W. Bush agreed to violate his famous campaign pledge — “Read my lips, no new taxes,” he had said in 1988 — in pursuit of a balanced budget. But after the deal, the deficit increased substantially: to $290 billion in 1992 from $221 billion in 1990.

read more at: Peter Ferrara’s Too-Nice Attack on Phony Washington Budget Deals | Cato @ Liberty

The rest of the article deals with "baseline budgeting". This is another issue that should make Americans sit up and listen carefully to what their politicians are proposing...as many spending cut and tax proposals are not what they seem.

The lesson to learn from this article is that spending cuts...REAL spending cuts...must come first. Let the politicians show that they are serious about cutting before they are taken seriously about increasing taxes. Any other course is simply asking for higher taxes with no reduction in spending...resulting in a bigger deficit and less money in the People's pocket.

Originally Posted by JoJoGunne

The lesson to learn from this article is that spending cuts...REAL spending cuts...must come first. Let the politicians show that they are serious about cutting before they are taken seriously about increasing taxes.

Agreed on spending cuts before raising taxes. So when are they going establish "REAL spending cuts"? Next year just before the election? When?

Originally Posted by Divine Wind

Agreed on spending cuts before raising taxes. So when are they going establish "REAL spending cuts"? Next year just before the election? When?

I don't know...I guess when the Democrats seriously get on the spending cut bandwagon. The Republicans are already there.

Originally Posted by JoJoGunne

I don't know...I guess when the Democrats seriously get on the spending cut bandwagon. The Republicans are already there.

How many different threads are you going to post up saying basically the exact same thing, JoJo?

I've already responded to two or three of them, and my answer isn't going to change for this one.

Originally Posted by NiteGuy

How many different threads are you going to post up saying basically the exact same thing, JoJo?

I've already responded to two or three of them, and my answer isn't going to change for this one.

Puh-leeze, NiteGuy. Not everyone is has as many notes in their songbook as you and I so don't look down on those who keep singing the same note over and over again.

Originally Posted by JoJoGunne

I don't know...I guess when the Democrats seriously get on the spending cut bandwagon. The Republicans are already there.

I expect my party to produce results. They haven't. When it comes election time, I'm going to vote appropriately. You, being a pseudo-conservative, non-Republican, can sit on the sidelines and watch.

Originally Posted by NiteGuy

How many different threads are you going to post up saying basically the exact same thing, JoJo?

I've already responded to two or three of them, and my answer isn't going to change for this one.

Did anyone ask you for an answer?

Dude, I don't care if you post in any thread, but your whining is getting tedious.

Originally Posted by Divine Wind

I expect my party to produce results. They haven't. When it comes election time, I'm going to vote appropriately. You, being a pseudo-conservative, non-Republican, can sit on the sidelines and watch.

As a member of the Republican Party you have every right to hold their feet to your fire, so go for it.

BTW, are you taking another page from the Liberal tactic book? You know...the tactic of telling a lie enough times that you...and others...come to believe it? I'm talking about your campaign to brand me as a pseudo-conservative (whatever THAT is). While I am not a Republican, I most definitely am a Conservative. In fact, I'm probably more Conservative than you are.

Anyway, don't worry...I won't be sitting on the sidelines...but I AM watching...both Parties...along with many other Americans...with our votes ready to boot those who don't take our country's best interests to heart.

Originally Posted by JoJoGunne

In fact, I'm probably more Conservative than you are.

This. This right here. This is what bothers me about the modern conservative movement. So interested in ideological purity, so quick to label everyone as not conservative enough. To even be a viable candidate, you have to pass so many litmus tests, it's appaling. Blech.

Originally Posted by Towski

This. This right here. This is what bothers me about the modern conservative movement. So interested in ideological purity, so quick to label everyone as not conservative enough. To even be a viable candidate, you have to pass so many litmus tests, it's appaling. Blech.

Yet people who call themselves..more Conservative then others tend to soak up tax dollars as much if not more then the ones they slander..