A famous adage suggests that the first step one needs to take to get out of a hole is to stop digging.
Republicans, however, have their shovels out. Again.
As Matt Miller explains in his latest column:
The deficit next year may top $500 billion. There are $25 trillion in unfunded liabilities in Social Security, Medicare and other federal retirement programs. So what do Republicans in Washington offer up as their next big domestic idea? More tax cuts, of course! This time to the tune of $140 billion in corporate tax reductions over the next decade.I remember the days when "fiscal conservative" was a synonym for "fiscally responsible." Those days have long passed, even if many reporters have not caught on to the Republicans tax cuts-only policy mantra.
How mad has our government's fiscal policy under Republican leadership become? Miller quickly outlines the facts:
From 1970 to 2000 federal spending averaged 20.9 percent of GDP.This is nothing less than a fiscal revolution.To pay for this spending, which both political parties had voted for over the decades, President Bush inherited a federal government that took in about 20 percent of GDP in revenues. In fiscal year 2003, which just ended, revenues dropped to 16.6 percent of GDP.
This 16.6 percent - mostly the result of Bush's three rounds of tax cuts - is the lowest federal revenue has been since 1959, near the end of the Eisenhower administration. This was before Medicare and Medicaid existed, not to mention most federal aid for education, student loans, modern levels of Social Security and much more.
In addition, within that revenue total, income taxes, the progressive part of our tax code, sank as a share of GDP to their lowest level since 1941. The payroll tax, which takes its heaviest bite from lower-income workers, rose to its biggest share of federal revenue ever.
One, moreover, that was accomplished without popular mandate and without candor on the part of the policymakers who made it happen.
Not that his remaking of our government should come as a surprise. The radical conservative think tankers have outlined their hopes to change our government in numerous articles over the years.
What's the result? I agree with Miller, who writes:
The bottom line - and these are facts, not liberal rhetoric - is that Bush's tax cuts have sent debt soaring and shifted the burden of government to lower-income Americans, all to fund tax cuts mostly for the best-off. These tax cuts have also made a nice start on the "de-funding" of government for which radical conservatives have longed.Anyone who thinks elections do not matter should reread that last paragraph.
Elections do matter. There are differences between the parties. People need to realize this fact before it is too late to climb out of the intergenerational debt hole the Republicans are digging.
