Monday, December 5, 2011

Runaway Spending, Not Low Tax Revenue, Fueling Deficits

From heritage.org

Following the failure of the Joint Select Committee on Deficit Reduction, Sen. Pat Toomey (R-PA) criticized liberals for insisting that any deal include a massive tax hike. In a speech at Heritage last week, he said tax revenue isn’t the problem facing the United States in the future; it’s the massive increase in federal spending.

“It’s actually arithmetically impossible to solve this problem on the tax side alone,” said Toomey, who noted that Democrats on the Super Committee wanted to hike taxes by $1 trillion without making any fundamental reforms to curb unsustainable entitlement programs.

Toomey cited data from the Congressional Budget Office to make his case. Heritage’s 2011 Budget Chart Bookuses that same data to depict how government spending — not inadequate tax revenue — is the main driver of long-term deficits.

Read it all here …