Straight-Talk Express embraces Voodoo Economics

[Whoha]

Originally posted by Arrian
Freezing or slowing discretionary spending. Sounds nice. I'm in. Who else is up for cutting the Pentagon's budget?

The Pentagon's Budget is in discretionary spending.

[Victor Galis]

I thought the deficit is greater than the whole of the defense budget, and very large compared to total discretionary spending.

I just don't see how spending cuts will close the budget deficit.

[Ben Kenobi]

This is just sad. Two things McCain has been known for is his courage and his honesty. Now, he's jettisonned his honesty to claim he can balance the budget using the same economic plan Reagan used to rack up more debt than all other Presidents combined, and which Bush also used to rack up more debt than all other Presidents combined -- including Reagan.

Awesome.

Reaganomics is a great plan. Cutting taxes be yarr and woo.

[Whoha]

Stimulus will not solve the problems in our economy, which is why I was disheartened when I heard Obama call for a second stimulus package.

[Victor Galis]

I don't think either candidate can fix the economy The question is which will do less damage pretending to try to fix it?

[Zkribbler]

Originally posted by Victor Galis
I thought the deficit is greater than the whole of the defense budget, and very large compared to total discretionary spending.

I just don't see how spending cuts will close the budget deficit.

CNN opined by saying it could be done with a 50% cut to Social Security payments and a 70% cut to Medicare.

[GePap]

Originally posted by Patroklos


I am wondering if you will he honest enough to revist this comment now that I have highlighted it. We shall see.

Why, its correct.

Bush says his tax cuts are why the economy "grew" under him. If that is the case, then its only evidence that tax cuts aren't that effective a method of creating long term economic growth, making McCain's plan seem particularly stupid.

And no, the Bush "expansion" has been pathetic. Real wages have not kept up with inflation - job creation had lagged behind population growth, and both the government and the population are deep in debt. Sad really.

[Arrian]

Originally posted by Whoha

The Pentagon's Budget is in discretionary spending.

Um, yeah. That's what I was saying...

Saying you're going to cut discretionary spending means you have to take on the Pentagon's budget, b/c that's a huge chunk of said spending.

But that alone won't do it. I think there is fat in that part of the budget, but not enough to close the gap (let alone get us the surplusses we need to run for a decade or so). Unfortunately, entitlements will have to be cut too.

-Arrian

[GePap]

Originally posted by Victor Galis
I thought the deficit is greater than the whole of the defense budget, and very large compared to total discretionary spending.

The Defense Budget is greater than the Budget deficit.

Let's take into account that a large portion of the budget is interest payments on the debt this country owes, so paying back the debt would reduce government spending significantly.

[snoopy369]

Originally posted by Victor Galis
I just don't see how spending cuts will close the budget deficit.

Deficit = (Spending)-(Income)

If Spending goes down, deficit goes down.

Does that help?



On a serious note... of course there is some assumption the economy will come back and thus we will get back some tax revenue. I'd also not mind cutting back some of the tax cuts (but not all!!).

I wonder if someone were to suggest raising the estate tax rate by, say, half (on estates >$100k) , how that would fly. It would be an easy way to raise taxes without taking earned money from living people...

[Arrian]

Originally posted by GePap


The Defense Budget is greater than the Budget deficit.

Let's take into account that a large portion of the budget is interest payments on the debt this country owes, so paying back the debt would reduce government spending significantly.

Very true. But of course that's a long-term thing. You can't pay back the debt until you are running surplusses.

And although the military budget is larger than the deficit, it's not so much larger that one can eliminate the deficit simply by cutting military spending.

-Arrian

[snoopy369]

I hear there's a company in Germany that's willing to help with the money shortages for paying back debt

[GePap]

The estate tax is one cut that should be recinded ASAP.

[Arrian]

I wonder if someone were to suggest raising the estate tax rate by, say, half (on estates >$100k) , how that would fly. It would be an easy way to raise taxes without taking earned money from living people...

The Republican party has just about trademarked the term "the death tax" and will go absolutely nuclear if such a thing is suggested. And people buy it.

I still think the better idea is to make the tax on inheritances, not on estates. That way, a large estate split between 10 people doesn't get hit as hard as one given to 1 heir. Spread the wealth, baby.

-Arrian

[Ben Kenobi]

Why should people have to pay tax on their estate when they die?

Shouldn't they be allowed to give all their money to whomever they want?