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Tax Increases vs. Spending Cuts

As the WaPo and the Grey Lady blur into sameness, here's this lead editorial from yesterday's WaPo about our dire financial condition:

"Under the realistic budget scenario, to keep the debt to GDP ratio stable over the next 25 years would require immediate and permanent tax increases or spending cuts of about 5 percent of GDP. That is a significant amount, equivalent to about one-fifth of all non-interest government spending this year."

Today's NY Times' lead editorial on the same topic is decidedly anti-Republican, but concludes thusly:

"[T]here is no way to fix the nation’s fiscal crisis without higher taxes now and in the future — and cuts in entitlement programs down the road."

So here's a little civics quiz: Given the choice between a cut in government spending equal to 5% of GDP or tax increases of the same magnitude, which do you think Congress will choose...?


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This page contains a single entry from the blog posted on August 1, 2010 9:36 AM.

The previous post in this blog was Steve Pearlstein Misses the Point (Again).

The next post in this blog is When the Government Runs a Business, Part III.

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