Newt (and every other candidate) continues to ignore the fact that we can not grow our way out of debt! In order to do that, we would need a long run of GDP growth over debt growth. We have never done that in the last 30 years.
Lowering taxes will increase the amount of money I have in my pocket, but the government will just borrow that amount and INCREASE the debt even more. In order to pay for everything from tax revenues only, taxes would need to increase by ~50% (reciepts now = ~2T, expenditures = ~3T) OR expenditures must decrease by 33% (or some combination thereof).
In one point I agree with the GOP Response to the SOTU - there really is only one issue. The GOP just doesn’t want to admit it (nor do the Dems).
We can grow our way out of debt. Such is the power of the American economic system.
It will require a return to sound principles of governance and economics-—including a lowering of taxes, not an increase.
There must be a draconian cut in spending as well.
Reagan showed us the power of the American economy unleashed and it can happen again.
God save the Republic.