White House Data Debunk Myth Bush Cuts Built Deficit

“After President Bush in late May 2003 signed the largest tax cut since President Reagan . . . government receipts from individual income taxes rose from $793.7 billion to a peak of $1.16 trillion in 2007, when the mortgage crisis began, a 47% jump.”

by Paul Sperry

While President Obama insists the Bush tax cuts caused the recession and record deficits, his own economists say otherwise.

He might want to consult their data for the truth. Read more

Federal Spending is the Problem: Defense is Not!

by George Landrith

With a long history of federal overspending and the recent explosion of more federal debt, it is obvious that the federal budget must be cut back to a reasonable size. We need an intervention. But the Budget Control Act — which would force an “automatic sequester” of $500 billion in across-the-board defense spending cuts over the next decade, in addition to the $487 billion in defense cuts already scheduled — is not a good solution to our spending crisis. Read more

The Real Fiscal Cliff

“After the phony cliff, we face the terrifying one.”

by Conrad Black

Last week, Fareed Zakaria and Charles Krauthammer appeared in Toronto (where I live much of the time), and while I did not go to their main debate, I went to a tasting of it at a luncheon. There was, I regret to write, as a longstanding friend of both of them, a surreal aspect to the exchange. After the usual compliments one exchanges (as I know from my time on that circuit), they embarked on a dialogue of the deaf, and a mutual flight, joined at the wingtip like Jurassic pterodactyls, soaring above the mighty chasm of American fiscal problems below. The otherworldly discussion of whether the Republican leaders in Congress will reach an agreement with the president about the automatic expiration of the Bush tax cuts of a decade ago vastly overshadowed the issue of reinserting spontaneous growth into the U.S. economy and grappling with the deficit at last. Read more

Fiscal Crisis: Failing the Details, Math and Leadership Tests

by George Landrith

President Barack Obama repeatedly chided Mitt Romney’s budget plan during the presidential campaign on at least two grounds: (1) it lacked detail, and (2) the math didn’t add up. Perhaps, we should use these two standards to see how Barack Obama’s plan stacks up. There is more than a little irony in Barack Obama criticizing others for not providing details or for their math not adding up. Obama has always been short on details and his math has almost never passed even the straight face test, much less actually adding up. Read more

Two Thoughts on Navigating the “Fiscal Cliff”

“The ability of the American people to watch the ['Fiscal Cliff'] sausage made and [to] read the contract before signing is a better guardian of our future than the hurried endorsements of the Washington establishment based on private assurances of politicians.”

by Grover Norquist

On January 1, 2013 three things happen:

First, the 2001 and 2003 tax cuts lapse along with a number of temporary tax reductions that have been extended so many times they are collectively known as “the extenders.” (Note to self: possible name for female rock band.) This collection of tax hikes total $500 billion in 2013. The $1,000 per child tax credit drops to $500. The Obama Social Security tax holiday ends again. The bottom tax rate jumps from 10 percent to 15 percent and the top personal income tax rate jumps from 35 to 39.6 percent — plus Obamacare’s new 3.8 percent surtax: total for top rate 43.4%. (Do be sure to add 10.3 percent for the state income tax if you live in California, 5.75 percent in Maryland or 8.82 percent in New York.) Read more