Record Federal Spending
Liz | 04/12 at 08:06 AM
Last month the federal government spent more money then ever before in our country’s history. This is not cause for celebration. Despite all the promises from our elected officials to rein in our outflows, the reality is that tough decisions have yet to be made. In the Alice in Wonderland world of the Beltway, President Obama rails against draconian cuts promised by miserly Republicans while in fact even Paul Ryan’s budget contains increased spending.
The good news is that our budget deficit narrowed last month in spite of growing outlays. Modestly higher income from households and substantial increases in corporate results led to higher taxes. This is of course the formula Republicans have proposed – stimulating higher tax revenues through growth rather than rate increases, and meanwhile reining in outlays. By contrast, President Obama pins his hopes on higher taxes. It is a real divide, and should be at the heart of the upcoming campaign. Instead of gimmicks and gotchas, wouldn’t it be refreshing to have Obama and Romney really discuss policiy- articulate what cuts they would be willing to make in discretionary income, how they might actually change Medicare and Social Security so that future generations can also bank on these programs? Don’t hold your breath.