GOP Stops Dem Proposal To Raise $2 Trillion In New Taxes
There were some developments this weekend that merit notation. As always, New Math was on full display.
Senate Democrats have drafted a sweeping debt-reduction plan that would slice $4 trillion from projected borrowing over the next decade without touching the expensive health and retirement programs targeted by President Obama.
Instead, Senate Democrats are proposing to stabilize borrowing through sharp cuts at the Pentagon and other government agencies, as well as $2 trillion in new taxes, primarily on families earning more than $1 million year, according to a copy of the plan obtained by The Washington Post.
Yes, Obama has finally conceded (somewhat) that some cuts have to be made to social programs that have bloated disproportionately in recent years. Congressional Dems have a tough election season on their minds instead.
The majority of the ‘cuts’ come from a $2 trillion tax hike. After that, the Dems want to cut the Pentagon budget by $900 billion, or over 131% of its 2011 budget, over the next 10 years.
Say hello to New Math.
It’s not a full $900 billion in cuts, it’s a $90 billion cut in the annual budget. In other words, only $90 billion will go towards our current annual deficit of $1.5 trillion, not $900 billion.
Budgets are always like this … projections, hypothesis, wishful thinking. Then next year they’ll just take the $90 billion that used to be in the defense budget, and spend it elseware instead of actually cutting that spending.
The GOP and many Dems want to get the reduction via cuts, and cuts alone. The Dem plan amounts to little more than the same old ‘we promise it will all be fine in a few years’ mantra. Problem is, that’s never worked out before. The numbers in the Dem proposal also fall short of our current deficit. So they expect us to buy into the notion we’ll not be running a budget deficit in 2014, while never actually getting us out of the red.