The New Democrat Online

Tuesday, March 19, 2013

The Hill: Congress: Erik Wasson: House Democratic Budget Includes $1.2T in Taxes, $200B New Stimulus: How to Get to Deficit Reduction Through Economic Growth

House Dem budget includes $1.2T in taxes, $200B new stimulus - The Hill's On The Money

I like the House Democratic budget that was written by Chris Van Hollen the Ranking Member of the Budget Committee. More then the House Republican plan but keep in mind that shouldn't surprise you because I'm a Democrat. The Van Hollen budget attempts to achieve deficit reduction with a three part plan which I believe has to be part of any final deficit reduction plan thats passed out of Congress. House and Senate and what the Van Hollen plan does, it says we need to cut spending in areas where we don't. Have to spend as much, cut wasteful tax loopholes which are tax expenditures that the Simpson-Bowles Commission labeled them as. But that we also will never achieve deficit reduction without strong economic growth, that we need a strong growing economy. With a lot more people working, fewer people in poverty which means fewer people collecting from public assistance. So it calls for 200B$ a year in new infrastructure investment to put unemployed people back to work.

I like the idea of closing wasteful tax expenditures as part of deficit reduction. We also can't get to deficit reduction without them but when you close those things for business's and leave the corporate tax in. Place where it is, 40% higher then Canada just North of the border. What happens is that you end up giving American business's a net tax increase money that won't actually go to the U.S. treasury but. Money that would end up going to other countries instead and creating jobs there, perhaps in the construction industries. Rebuilding areas of those countries instead of rebuilding things here. So what we should do instead in close wasteful tax expenditures including for business's but at the same time. Encourage those business's to invest that money in America instead. So you are creating economic and job growth while at the same time you are reducing your deficit. Closing tax expenditures should come in a broader tax reform package and do that while you are also investing in new infrastructure.

So thats what I would be doing when it comes to deficit reduction as well as economic and job growth. And when you are talking about cuts, you should also be talking about reforms. First cutting things you simply don't need and or don't need to spend as much on but them reforming things you need to make. Them work better but also more cost effective so you aren't hurting people that need whatever assistance they are currently getting.