Friday, March 20, 2015

What's Wrong With Republican Budget Proposals?

The answer to the above question is simple.  The modern Republican Party depends upon fraud to win elections and transfer money from the poor to the rich.  The budget proposals from the House and the Senate are being advertised as an effort to balance the federal budget.  To balance the budget they propose huge cuts in social welfare programs.  They also cut taxes for the rich.  They can't explain how their proposals will balance the budget so they use asterisks in key areas of the budget which depend upon dynamic scoring assumptions that they make.  That is, the economy will grow faster than trend because of their proposed tax cuts.  That will increase tax revenues and pay for the tax cuts.

Cutting social welfare programs and cutting taxes for the rich may not be very popular with the typical household.  It can only be sold to the public as a way to balance the budget.  In order to balance the budget they are forced to make assumptions about economic growth which they cannot explain without the use of unexplained asterisks.

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