My latest in The American Spectator about the debt ceiling debate has been getting some attention today (I’m going on KMOX in St. Louis at 1 p.m. Central Time) to talk about it.
The indisputable facts show that Congressional Republicans have done their job. Months ago, the House Republican majority passed the budget proposed by House Budget Committee Chairman Paul Ryan (R-WI). Ryan’s budget provided for $6.2 trillion in spending cuts for its first 10 years alone. Over the long run, it drives federal spending to 15% of GDP, well below the postwar historical average of 20%.
Ryan’s budget included tax reform to get the economy booming again, with a 25% top income-tax rate for incomes over $100,000 a year, and a 10% rate for incomes below that. The internationally uncompetitive federal corporate tax rate of 35% would be reduced to 25%, which would return federal taxes to their long term, postwar, historical average of 18% of GDP. Because that figure is higher than our spending, the Ryan budget eventually pays off the national debt entirely.
Yes, that takes decades. $14 trillion is a big debt to pay. It takes that long because the careful reforms are designed so that no one is actually hurt by the changes — senseless Democratic rhetoric to the contrary notwithstanding. The Democrats just don’t like it because by reducing government dependency it threatens their political machine.
Read the rest here.