July 21, 2011

Gangster Government

Shall we play, duelling pretty-smart folk? While the WSJ Ed page can find some nuggets to praise in the Gang-of-Six plan outline, the pretty-smart people at Investors Business Daily's Ed page see worse and worser.

And what details it does contain show that the gang has employed some of the most egregious budget tricks available to make the spending cuts look bigger and tax hikes smaller than they actually are.

The best example of this is the plan's tax proposal, which alternately boasts that it cuts taxes by $1.5 trillion and raises them by $1 trillion, but which more likely will result in taxes going up by more than $3 trillion.

And then there are the spending "cuts."

Plus, most plans take current spending levels as a given, and make "cuts" off this hugely inflated base, ignoring the fact that federal spending has rocketed upward by an astonishing 24% in just the past three years.

A credible plan would bring spending as a share of the economy back to prerecession levels. That would mean a spending cut in the neighborhood of $450 billion next year.

And the close:

The fact that more and more lawmakers on both sides of the aisle are willing to sign onto the phony Gang of Six plan, and that Obama would lend it his effusive praise, is a testament to why the country is in such deep fiscal trouble.

UPDATE: Washington Examiner Ed page - Gang of Six Plan is More Smoke and Mirrors

Don't Demand the Unearned Economics and Markets Obama Administration We're from the government, and here to help. Posted by JohnGalt at July 21, 2011 2:54 PM
| What do you think? [0]