"Revenue Neutral" and you

Races for the Senate, U.S. House, etc. and other issues of national importance.
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"Revenue Neutral" and you

Postby Huckleby » Wed Apr 04, 2012 9:45 am

The great centrist hope is that the national debt will be solved with a compromise of tax reform and spending cuts. Revenue can be raised by closing loopholes, flattening rates, and this will lesson some cuts to safety net.

The Republicans have now uniformly adopted the language, "we are all for tax reform that will close loopholes, broaden the base and be revenue neutral." They say "revenue neutral" casually, as if this is just a sensible approach. What they are saying is that if tax restructuring produces additional revenue, none of it can go towards dealing with the debt, 100% must be used to lower taxes.

This is the equivalent of the Democrats taking the position: we will support spending cuts, but they have to be revenue neutral. Every spending cut has to be offset by a spending increase somewhere else.

The Republicans are in a strong bargaining position because Democrats are afraid to talk about raising taxes. I don't fear Republican strength, I am worried about Democrat weakness. Dems are not fighting back, which is what we saw last year in the debt ceiling fiasco.

The Republican dream of crushing the New Deal is not looking as remote as it once did.

Henry Vilas
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Re: "Revenue Neutral" and you

Postby Henry Vilas » Wed Apr 04, 2012 9:53 am

Where were the calls for revenue neutral budgeting when Congress expended hundreds of billions of dollars for two war while at the same time giving out tax cuts (many to the super rich)? Even if future spending is curtailed, the interest we owe on our borrowing for those wars continues to grow. Is Congress going to raise taxes on those who can afford it in order to pay off those bonds (much of which is held by the Chinese)?

"Revenue neutral", indeed.

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Re: "Revenue Neutral" and you

Postby fisticuffs » Wed Apr 04, 2012 11:21 am

"Revenue Neutral" also doesn't address the deficit. The Ryan plan doesn't name one loophole to be closed.

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