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McCain Adviser Flip Flops: Mixed Promises on Budget Balance
thinkprogress.org — Yesterday, Sen. John McCain pledged to balance the federal budget by 2013. “John McCain will balance the budget by the end of his first term” . But on the same day, Top economic adviser Douglas Holtz-Eakin flip-flopped on this pledge, lowering the bar for McCain by stating that the senator's plan is to balance the budget by the end of his 2nd term.
MakiMaki- 158 diggs
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- tcbishop12, on 07/08/2008, -2/+1The McCain camp now has several familiar themes running through McCain's new policy pronouncements. But his greatest canard is "tax cuts pay for themselves" and will increase revenues.
The underlying facts directly contravene McCain's assertion, but that doesn't stop McCain's advisers from advancing this meme. The primary reason is McCain's economic statements are not centered around policy but McCain's new adviser Schmidt is instead intent on selling a message.
Tax cuts increase revenues and pay for themselves is a canard. It's popular because at the root of the message is an easy sell to voters -- you can get something for nothing. "Just believe" panders McCain. Compounding the degree of obfuscation is that the McCain camp is now rewriting the history, usually "forgetting" key facts.
Under Reagan, the tax cuts led to stagnant government revenue from individual taxpayers. It wasn't until he started raising taxes the government revenue started to increase. However, Reagan spent like a "tax and spend" liberal, increasing the debt/GDP ratio in each year of his presidency from 33% to 51%.
Under Bush II, the tax cuts led to a 6.7% decline in revenue for the first 4 years of his presidency. Because his spending increases far outpaced the decrease in government revenue, the total national debt outstanding increased 41%.
To compare, Clinton increased taxes on the upper-income taxpayers, which led to a 97% increase in government revenue. He grew the economy at a healthy pace. He decreased the debt/GDP ratio in each year starting in 1995 of his presidency.
John Roberts of CNN asked McCain this week: ".... the Center on Budget and Policy Priorities, a non-partisan organization. They project that by extending the president's tax cuts, which you want to do, and adding in the tax cuts that you're proposing, the deficit for the year 2013 would be somewhere around $439 to $445 billion. So I think it is a fair question to ask, how would you get that number down to zero?
MCCAIN: First, I suggest you check in with other organizations...
Roberts: I also checked with the Congressional Budget Office and the Center for Budget and Policy Priority's numbers were more conservative, they were lower than the CBO's numbers. The CBO's numbers are higher.
MCCAIN: Again, they're static numbers. Not saying that revenues will increase with a strong economy and with low taxes. That's the difference. and I respectfully disagree.
ROBERTS: Senator, you can't get over the fact, though, that extending the Bush tax cuts, as you want to do, and adding in your tax cuts do take the deficit number -- we actually go from a $70 billion surplus to a $445 billion deficit.
MCCAIN: You can't seem to get over the fact that it's spending that's out of control. And you restrain spending and also you can't get over the fact that historically when you raise people's taxes, guess what, revenue goes down. Every time we cut capital gains taxes, there has been an increase in revenue. . . [debunked].
ROBERTS: I think some voters are legitimately asking the question that the amount of money that you need to save to get down to zero is the total amount of the nonsecurity discretionary budget now -- that the federal government operates on.
McCain: Actually, what I'm hearing from voters right now is that they're worried about keeping their jobs. . . - wonderworm, on 07/09/2008, -0/+1McCain, because graduating in 84th place out of 89 classmates reveals the intelligence and work ethic that Americans demand from their future president. That's nearly last in his class for the slow ones here.
- Rotzooi, on 07/09/2008, -1/+1Still an improvement over our last choice.
- etgggg, on 07/10/2008, -1/+0Welcome to politics i mean seriously how is this a story.
- mathewsjw, on 07/10/2008, -1/+1was it not George Patton graduated dead last, there is NO shame being at the bottom of the best from the best country in the world.
- MisterWonderful, on 07/10/2008, -0/+1lemme guess, you were home schooled...
Patton graduated Cadet Adjutant jackass. Can you pull anything else out of your ass for us?
- MisterWonderful, on 07/10/2008, -0/+1lemme guess, you were home schooled...
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