Posted on 09/19/2010 3:18:50 AM PDT by Scanian
Stop the presses: House Speaker Nancy Pelosi has discovered fiscal discipline. On Thursday, she said she opposed the extension of the Bush tax cuts for higher income brackets, because she can see no justification for going into debt to a foreign country to underwrite and subsidize tax cuts for the wealthiest people in America.
Pelosi is right in at least this much: Our expected $1.3 trillion budget deficit and $13.4 trillion national debt pose a fundamental threat to the US economy and our way of life. But she is wrong in her belief that the deficit is due to low taxes rather than profligate spending.
For the last 40 years, federal spending has averaged approximately 21% of GDP, while revenues have averaged roughly 18%, resulting in a structural shortfall of about 3% of GDP. Following the enactment of the Bush tax cuts, revenues did decline steadily as a percentage of GDP (although measured in dollars, revenues actually increased by roughly $700 billion between 2003 and the start of the recession in 2008). This year, tax revenues will be only about 14.6% of GDP.
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Nancy Pelosi idea of fiscal discipline is akin to Obama’s idea of healthcare locic not in use by both.
Let's put Nancy's organs on ebay.
Extending the tax cuts will make no difference in the economy except for a psychological lift. The economy is in the tank with the Bush tax cuts in place. letting the taxcuts expire is ,of course,insane. What is needed is further tax RATE cuts frozen and severly curtailed government spending and the elimination of restrictive regulation and regulation agencies!
Nancy is only parroting what Obama has already said.
These two idiots believe that demonizing people who have worked and made money is the way to save America.
I'm just being intuitive here. It's hard to imagine that the independent nursery, lawn service, hardware store, restaurants, butcher etc. where I spend money being in business at all if they didn't have a real good percentage of their revenue from people in the income brackets Obama wants to punish. Their taxes go up, the first thing that might go is that local spending that keeps local economies intact. And there goes the local tax base for many communities.
JMHO. My only "data" for my hypothesis is watching what happens to local businesses when people's incomes decline.
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