Re: Fiscal Cliff Deal: $1 in Spending Cuts for Every $41 in Tax Increases
posted at 1/1/2013 12:28 PM EST
In response to ComingLiberalCrackup's comment:
This is the "balanced" approach of President Obama...and better believe the $1 in cuts are not really cuts anyway...
CNN's New Year's Resolution seems to be to go deeper into the tank for the Democrats, cheerleading for passage of tax hikes with no spending cuts....
According to the Congressional Budget Office, the last-minute fiscal cliff deal reached by congressional leaders and President Barack Obama cuts only $15 billion in spending while increasing tax revenues by $620 billion—a 41:1 ratio of tax increases to spending cuts.
When Presidents Ronald Reagan and George H.W. Bush increased taxes in return for spending cuts—cuts that never ultimately came—they did so at ratios of 1:3 and 1:2.
“In 1982, President Reagan was promised $3 in spending cuts for every $1 in tax hikes,” Americans for Tax Reform says of those two incidents. “The tax hikes went through, but the spending cuts did not materialize. President Reagan later said that signing onto this deal was the biggest mistake of his presidency.
"In 1990, President George H.W. Bush agreed to $2 in spending cuts for every $1 in tax hikes. The tax hikes went through, and we are still paying them today. Not a single penny of the promised spending cuts actually happened.”
Just like the debt impasse, we are sure to find out that the spending cuts are imaginary cuts in the rate of growth over ten years. in other words, complete BS.