Republican Induced Revenue Deficit
Today’s Wall Street Journal has an OpEd from a former adviser to Sen. Mitch McConnell (R-KY), apparently suffering from memory loss, blaming Democratic tax policies for the current revenue shortage.
Mr. Solon seems to have forgotten how the nation’s revenue shortage began, as the size and scope of government grew to record levels under George W. Bush and a Republican Congress. In addition to the wars, federal education spending soared, a new prescription drug benefit passed, failing private businesses were bailed out, and a bloated national security state apparatus was created.
Moreover, blaming the Democrats’ tax policy still fails to miss the larger point. Historically, tax revenue as a share of GDP hovers between 18-20% regardless of marginal rates. Clinton-era tax rates didn’t hinder economic growth due to the Clinton-era spending rates. If Republicans want to be taken seriously while bashing Obamacare and other irresponsible Democratic fiscal policies, they can start by advocating an end to corporate welfare and the repeal of Medicare Part D, No Child Left Behind, the Department of Homeland Security, and other big government initiatives they once wholeheartedly endorsed.
Image via American Thinker