Bush's tax cuts haven't touched Social Security or Medicare taxes (and both programs run surpluses anyway). They've been solely cuts in personal and corporate income taxes, dividend taxes, and capital gains taxes. These are the taxes that fund discretionary spending.What 80% of the government did you want to cut?
Discretionary spending in 2005 was roughly $1 trillion. About half of that was for defense and national security, which Sullivan doesn't want to cut. That leaves $500 billion, which funds the entire rest of the federal government.
The federal deficit for 2005 was over $400 billion.
So: if you support the tax cuts, and you don't want to cut defense spending, and you want a balanced budget, you need to slice about $400 billion out of the $500 billion that's left.
Monday, March 20, 2006
For Small-Government Types -- Something to Chew On
I'm going to assume that the numbers in Kevin Drum's post are correct. So how does somebody who supports reducing the deficit but not raising taxes to do it answer this: