Monday, December 21, 2015

CFRB: Paul Ryan just blew up the deficit

Can't wait to see the "deficit is too small!" crowd give all the credit to GOPer Ryan.

1 comment:

Charles Hayden said...

1. Congress doesn't and can't "add" per se to the government deficit.

2. With the year end Ryan deal, what they did was not raise taxes in some cases, while lowering taxes in others. Not raising taxes does not change anything by definition, yet it likely contributes to the total number computed as "adding" to the deficit.

3. Many of the Ryan deal tax cuts appear to go to upper incomes and those with lower propensities to spend, thus taking the form of idle balances, which are either supported by larger private or government deficits, or that amount of output doesn't get sold.

4. The distribution matters and handouts or tax cuts to wealthy only intensify need for larger government deficits to support same levels of government spending.

5. Saying the deficit is too low is not an analysis of the stock market.