Both parties' tax plans would add to the deficit - Washington Times

Both parties’ tax plans would add to the deficit

The “fiscal cliff” debate in Washington has been cast as a choice between runaway Democratic spending and draconian Republican cuts, but no matter who wins the argument, both parties’ tax plans add to the deficit — by a minimum of $4.3 trillion through 2022, according to the nonpartisan Congressional Budget Office.

Republicans, who want to extend almost all of the George W. Bush-era tax cuts beyond their Jan. 1 expiration date and want to continue to delay the full alternative minimum tax, would deepen the deficit by $250 billion next year and $5.3 trillion over a decade, according to the CBO.

Democrats support delaying the full alternative minimum tax and want to extend all but the highest-income tax rates, which the CBO says would deepen deficits by $205 billion next year and $4.3 trillion over the same period.

“Everybody has forgotten that it is not just the tax cuts for the upper-income people; it is the entire package of Bush tax cuts that were unaffordable,” said Robert L. Bixby, executive director of the Concord Coalition, a bipartisan deficit watchdog.
In the coming weeks as we watch the republicans and the white house duke it out over the "fiscal cliff" we need to remember that these are not talks about reducing the deficit, they are talks about how much we should grow the deficit. The right wingnuts need to keep in mind that going into this, the republicans are the ones wanting to spend more money, so every concession they make to the dems will shrink the deficit a little, while every concession the dems make to them will grow it.

“It is time to take the plunge — let all the Bush tax cuts expire,” said David Stockman, who was a budget director for President Reagan. “They were unaffordable in 2001 and 2003, and now with $16 trillion of national debt and counting, they are a fiscal abomination.”
For the Reagan junkies out there.

Both Republicans and Democrats have called for eliminating some tax loopholes and deductions, which could reduce CBO’s deficit projections. But so far, neither side has put forth a specific concrete plan to do so.
Here is a plan...eliminate the biggest loophole of them all....the reduced tax rate on capital gains. Tax it as regular income. Raise our current top rate to 40%, then institute a new bracket....80% for all income over $10 million. While we are doing USEFUL things, god will reward you for charitable donations. The government doesn't need to.

That would allow us to keep the middle class tax breaks, which we need to do if we don't want to fall into recession.

Despite the optimism, it is clear that the fiscal cliff has put congressional leaders in a postelection pickle as they struggle to find the balance between tackling the deficit and not hurting an already fragile economic recovery.

Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said lawmakers are in a tight spot.

“The goal here is to put together as big a deficit package as you can that would stabilize the debt without derailing the economy recovery,” she said.

“There is a risk that if you do too much, too fast, you actually put us back into recession and that makes things harder. It is a delicate balancing act that is going to be difficult to get right,” she said.

“But the key is, are they going to be able to put together a package that is big enough and hits the right structural parts of the budget that the debt is not growing faster than the economy?”
There should be no pickle. This is not actually that hard. I solve 85% of the problem above, and I am not even all the way through my first cup of coffee yet. Go with my plan and it spurs economic growth, brings down the deficit and we have not even added in things like the 40% military spending cuts I would also institute.

Man, I should be running this place.

Also, I think people need to remember when they are looking at those numbers that those are not unified budget numbers, meaning we need to add $550 billion in deficits to both of the above numbers for SS over the next 10 years.