It’s the Spending not the Tax Cuts, Stupid.

It’s the Spending not the Tax Cuts, Stupid.

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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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About Peter Pappas

Peter is a tax attorney and certified public acccountant with over 20 years experience helping taxpayers resolve their IRS and state tax problems.

He has represented thousands of taxpayers who have been experiencing difficulty dealing with the Internal Revenue Service or State tax officials.

He is a member of the American Association of Attorney-Certified Public Accountants, the Florida Bar Association and The Florida Institute of Certified Public Accountants and is admitted to practice before the United States Tax Court, the United States Supreme Court, U.S. District Courts - Middle District of Florida

Comments

  1. 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. Sergio,

    Thanks for visiting.

    The answer is that government is big business and when you reduce its size a lot of people lose power.