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The President’s offer is left of Bowles-Simpson | Keith Hennessey

July 14, 2011

At least as important, Bowles & Simpson offered a long-term fiscal solution in exchange for this net tax increase, under which spending would never have exceeded 22% of GDP and deficits would have quickly dropped below 2% of GDP and eventually reached balance. That’s too much spending and too high taxes for my taste, but it’s qualitatively different from and far superior to the President’s proposal, which is to trade permanent tax increases for only a temporary slowdown in government spending growth and budget deficits.Congressional Republicans are being castigated for opposing the President’s proposal. Many of those Republicans will reject any tax increase in any package, but some will consider the offer as a whole, and will weigh the spending control and reform they’re being offered in exchange for higher taxes.And unlike the Bowles-Simpson package, the deal they’re being offered by the President is such a bad one that it’s not really a tough call.

via The President’s offer is left of Bowles-Simpson | Keith Hennessey.

Hmph.

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2 Comments
  1. Michael Eaton permalink
    July 14, 2011 3:20 pm

    Ad the Republicans is so far right of B-S, you can’t see it from there. Read what Simpson said about the GOP posotion:

    “The stuff that’s going on in my party, where the – pettiness overcomes the patriotism – it’s just disgusting to me. Reagan raised taxes. We’ve never had less revenue to run this country since the Korean War.”

    Heh.

  2. July 16, 2011 10:54 am

    Yes, the republican position is to the right of B-S. Obama and the democrats are to the left of B-S. On the X axis of the stupid-smart scale, 0=Stupid/B-S, and you get smarter as you go to the right.

    Seems that the prez would follow the advice of his own “blue ribbon” debt commission, but apparently their recommendations weren’t far enough left of 0 for him.

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