Tax Cut and Spend


Bush submitted a $2.23 Trillion Budget Plan to Congress, proving that Republicans are pretty much as pro-big government as are the Democrats.

Despite a slow growth in tax revenues, the government continues to increase spending by 4%. Given that the total GDP is only $10.5 trillion, that means the government seizes and spends over 21% of our hard earned dough. The budget also projects a deficit of $307 Billion. While this number is larger than previous deficits, at only 2.8% of total expenditures, it is dwarfed by the 1983 and 1992 deficits of 6.0% and 4.7%.

Despite the increase in spending, cutting taxes is still the right thing to do. Not only does it boost the economy, and thus should help boost the GDP, but it helps to keep government spending in check. When we had a budget surplus, liberals were chomping at the bit to spend that extra money. A deficit should put pressure on liberals to curtail their spendthrift habits.

As a libertarian, I'd still like to see a decrease in spending. Many American families and businesses had to curtail spending in the face of declining incomes and revenues, since we don't have the police power of government to simply go out and seize more money.

While Republicans have firmly cemented themselves as the party of tax-cut and spend, Democrats are continuing their tax and spend pursuits. (As a Libertarian, choosing between them is a bit like being asked if you want to be shot in the arm or the leg.) Still, at least the Republicans are trying to boost the economy. Democrats, meanwhile, are still hoping to keep the economy in the tank until the 2004 election.



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