Should the GOP Cave on Taxes?


Republicans in Congress are under tremendous pressure to cave in to President Obama’s demand for tax hikes by December 31. These tax hikes are projected to generate $823 billion in additional revenues, and save another $127 billion in interest payments, for a cumulative reduction of $950 billion in the national debt over 10 years, according to the left-wing Center for Budget and Policy Priorities.

Ten-year budget projections are notoriously unreliable, but the White House estimates budgets for five years. By 2017, the administration projects that the national debt will be more than $21 trillion but these tax hikes will have generated just $307 billion, reducing the debt by a miniscule 1.44 percent.

If Republicans fail to increase revenues, “sequestration” – automatic spending cuts – will go into effect, cutting up to $1.2 trillion from federal spending over the next 10 years. These cuts, we are told, will slash essential programs “across the board.”


In reality, sequestration is not a spending cut at all, but a slight reduction in the growth of spending.

In the worst-case scenario, cutting $1.2 trillion over 10 years means cutting $120 billion from each year’s spending over a decade. Without sequestration, the Obama White House projects that federal spending in 2017 will exceed $4.5 trillion – some $736 billion (19 percent) more than 2012’s $3.8 trillion budget.

Read More at Human Events . By Mark LaRochelle.

Photo Credit: Donkey Hotey (Creative Commons)


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