Raidne, on 05 March 2012 - 02:15 PM, said:
Bush-era tax receipts are unsustainable. They are astonishingly low. That is, in many ways, the source of our long-term problems.... Using the White House's figures, which involve capturing a historically nearly unheard of 20% of GDP in tax receipts....
I cut and pasted those two statements because I thought they were linked. Anyway, tax receipts are low now because the economy sucks, and even Obama opposed raising them now. But if you look at receipts as a percentage of GDP from 2001-2008, they're right around 17.5-18.0%, which is pretty consistent with where they've always been historically.
http://www.taxpolicy...t.cfm?Docid=205
What worries me (in addition to Obama wanting 20% of GDP in tax revenues) is the projection of future GDP growth that supposedly will grow us out of this. Seems to me we've been overestimating this for quite awhile, and the problem snowballs at lot more rapidly if growth isn't where it is supposed to be.
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But I am really disappointed to not see more of an effort to bring down spending. How can we possibly add $500-$700 billion a year in deficits to the debt through 2022 and still pay the interest on the debt without killing our economy?
I'm personally willing to let the Bush tax cuts expire, but you've got to have meaningful cuts to the 60% of the budget that is based on entitlements, and frankly, the President's budget doesn't even attempt that. It's just a plan to discover future new efficiencies, which is the typical "waste/fraud/abuse" bullshit.
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Why don't you jettison those nutbags already and we can actually have a real conversation about governance going forward? Right now, you can't win with them and you can't win without them. Time to try out another strategy.
Honestly, I think the creation of a new entitlement program in the form of the ACA makes that impossible. I truly do. There is no middle ground between people who think the creation of a new entitlement program costs the government less money, and people who believe it doesn't. It's such a fundamental difference in assumptions/mindset that it just can't be bridged.
'd be happy with 1) eliminating the Bush tax cuts, 2) killing the ACA, and 3) going with Ryan's Medicare plan. But while I think some Republicans
might be willing to do 1) in exchange for 2 and/or 3, I don't think Democrats are willing to do 2 or 3 under any circumstances. To most Republicans I know, the ACA is Exhibit A that Democrats simply do not buy into the idea of cutting government entitlement spending, period. Whether that is true or not, that's the belief.
And yes, I know the ACA estimates are (or were, because they've been changing since it was passed) that it actually lowers the deficit, and I don't believe those estimates are any more reliable than were the original estimates for the cost of Medicare.
Edited by Former Lord of Winterfell, 05 March 2012 - 02:51 PM.