Nov 11

NewImage2 Bad plan good plan

The President’s Deficit Commission presented a bad plan. It raises taxes, for which there is NO need, except on those who pay nothing now.  With more money, they will spend more – they ALWAYS do.

Paul Ryan, Republican from Wisconsin, has a better plan.

It has its faults too… it isn’t specific enough about discretionary spending cuts.  It talks about “process” intead of actually getting rid of Departments. And it maintains a big Federal role in everybody’s healthcare.  And it exempts too many from sharing the burden – a recipe for spending growth.

Ryan’s plan’s good parts are that it solidly reforms entitlements, dismantles the IRS/complex tax scheme we have now, and has a very business growth friendly business tax scheme.

So it has problems, but it is way better than what we have by a country mile, if just because it won’t collapse.

 

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