A Republican for Higher Taxes

The former boy-wonder budget director in the first Reagan administration and the architect of Reagan’s supply-side economic policies, Stockman has been very busy lately rejecting the tax-cutting recommendations of Republicans in Washington and arguing that we must get our fiscal house in order or watch our way of life continue its decline. As an “imperialist power,” he says, America is in danger of being at “sundown.” Stockman, who turned 64 on Wednesday, has always been ahead of the curve on tax and fiscal issues, and it appears that he is ahead of it again this time, too…

 

David Stockman, Reagan’s budget guru, thinks Congress should let the Bush tax cuts lapse and pay down the deficit. Stockman has also been talking about cutting military spending, cutting farm subsidies, cutting health-care spending, cutting Medicare payments and Social Security payments for the wealthiest Americans and for whom their financial impact is minimal — despite being rightly owed the money — in order to bring the deficits down and to show the world we are again serious about grappling with our proclivity toward fiscal mismanagement. “If you think you can continue this fiction indefinitely by borrowing money to hand to people so they can keep spending and that nothing will go wrong in the global currency market, the global fixed-income market, the monetary system, break-out commodity inflation — all the possible bad things that can happen — if you want to ignore all that, then spend a couple more years borrowing money and paying it back to taxpayers, because that’s essentially what your doing,” he told me on Wednesday. “These are deficit-financed tax cuts.”

Not only is Stockman absolutely right about the need to reduce drastically our budget deficits — and on Wednesday the leaders of President Obama’s bipartisan deficit commission floated a plan to reduce the deficit by $200 billion — he should be applauded …

via A Republican for Higher Taxes – NYTimes.com.

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This entry was published on November 12, 2010 at 4:46 pm. It’s filed under economics and tagged . Bookmark the permalink. Follow any comments here with the RSS feed for this post.

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