Tea Party Power to Solve the Debt Problem
by Larry Kudlow at Townhall.com
The New York Times ran a front-page story this week called “Party Gridlock in Washington Feeds New Fear of a Debt Crisis.” As usual, they got it wrong. Instead, the headline should have read, “After Scott Brown’s Astonishing Senate Win in Massachusetts, New Political Gridlock in Washington Could Spell the End of the Liberal Crack-Up We Have Witnessed over the Past Year.”
In fact, gridlock in Washington is good, since it will stop the assault of big government until the end of the year when Congress could be overturned by independents, tea partiers, Republicans, and probably some Democrats as well. Just take a look at the high spirits at the CPAC convention, where tea partiers are reinvigorating conservatives and Republicans.
So let’s take this momentum forward by using it to drain any remaining power from the extravagant spending-and-borrowing assault in Democratic Washington. And let’s especially use this tea-party power to stop Democratic plans for another round of broad-based tax increases.
Take, for example, Obama’s new deficit commission. It’s a bad idea. This commission is a fig leaf to cover up President Obama’s out-of-control budget. It’s a Trojan horse for tax hikes, especially a VAT that would engulf the middle class with up to a 15 percent tax rate on the sale of goods and services. Obama is getting ready to move his lips on the pledge not to raise middle-class taxes. Congressional Republicans must not let him do this.
Here’s the real problem: The Obama budget would take federal spending as a fraction of the economy to 25 percent, roughly a $1 trillion additional spending increase in the out-years. Publicly held federal debt would climb about $18.5 trillion by 2020, more than double what Mr. Obama inherited, rising to almost 80 percent of the economy.
Rather than tax hikes, I say stop the spending. Outside of defense and entitlements, why not roll back the discretionary budget to 2008?