WP: Tax Cuts May Come At a Price, Treasury Department Study Says

[DeepModem Mom]

Tax Cuts May Come At a Price, Study Says
Treasury: Financing Must Be Found
By Nell Henderson
Washington Post Staff Writer
Wednesday, July 26, 2006; Page D01

The federal government will need to either cut spending or raise taxes down the road to pay for extending President Bush's recent tax cuts, the Treasury Department said in a report released yesterday, dismissing the idea popular with many Republicans that such sacrifices can be avoided.

The Treasury report did not openly address the much-debated contention of many conservative analysts that the tax cuts will boost economic growth so much over time that the resulting increase in taxes paid will offset much or all of the initial loss in government revenue -- that tax cuts can essentially pay for themselves.

The report acknowledged the debate delicately, saying "the issue of how, or even if, these policies need to be financed remains a source of discussion among economists."

But the Treasury's view reflects "a recognition the federal government has to finance the tax relief" to avoid a rise in government debt, Robert Carroll, deputy assistant secretary for tax analysis, said in an interview.

The report stressed that the economic effects of extending the tax cuts "depend crucially on whether they are financed by lower spending or higher taxes in the future."...

http://www.washingtonpost.com/wp-dyn/content/article/2006/07/25/AR2006072501543.html

[rodeodance]

1. for once, Treasury is stepping up instead of just being a lapdog.

[DeepModem Mom]

3. I wondered if this was the result of a new Secretary, Hank Paulson. nt

[BOSSHOG]

2. Ya know

You don't have to be a rocket scientist to understand this. That's why it will be sluffed off at the White House and the originator of the report at Treasury will have his career and family ruined by vengeful goons with no concept of right and wrong.

Thanks very much for publishing this incredibly enlightening news. I wonder if the middle class supporters of dumbass understand the consequences one finds when reading between the lines?

[Norquist Nemesis]

4. duh....

As someone else said, 'How many times can you cut your paycheck before you begin to feel the squeezed?'

[displacedtexan]

5. More News From The land Of DUH

They write this as if they've just now figured it out?

[emulatorloo]

6. kick n/t

[OneBlueSky]

7. "The federal government will need to either cut spending . . .

or raise taxes down the road to pay for extending President Bush's recent tax cuts" . . .

wtf??? . . .

I do believe I've fallen down the rabbit hole . . .

[Demit]

8. Ah, the most recent entry in the Ya Think? category of news.

[FreeStateDemocrat]

9. Why back in the business section (page D01) & not the front page (A01)

where many more of the people who vote and will be screwed by this fact would read it?

[tanyev]

10. What a shock.

[kdmorris]

11. See, this is common sense, 5 years late...

Everyone in America knows that if you are planning on buying a house (invading the Middle East), you don't quit your great paying job and go get a job at McDonald's (tax cuts). It's really not that hard to figure out that and I don't understand why the government needs panels and committees and oversight boards to figure out that if you have more expenses, lowering your cash flow is just retarded.

[CountAllVotes]

12. gee whizzzzzzzz

I guess those rich folks out there aren't spending enough of their money on high ticket items to keep on stimulating the economy eh?

:sarcasm: (as if they ever did to begin with!!!) :grr:

:kick:

[Skink]

26. High ticket tax free internet shopping is all the rage.

[Lasher]

13. Is the tax cuts workin' yet?

Way I hear it, we've turned the corner on economic stagnation! The national debt is in its last throes! All we need are more tax cuts for rich people, and it's mission accomplished!

Starve-the-beast is a conservative political strategy which uses budget deficits to force future reductions in government expenditure, especially spending on socially progressive programs. The term "beast" is used to denote government and the social programs it funds, including publicly-funded health care, welfare, and educational financial aid, the implication being that expenditure on such programs, or the programs themselves, is wasteful or destructive.

http://en.wikipedia.org/wiki/Starve-the-beast

[gratuitous]

14. It "remains a source of discussion" does it?

On one side, you have common sense; on the other, lunacy equivalent to the idea that you can fly to the moon if you just flap your arms hard and fast enough. And this is delicately called a "discussion," is it? Lending credence to lunacy isn't a discussion, it's madness.

[Nickster]

15. More news from the Department of No S**t Sherlock..... n/t

[goforit]

16. Need to throw the tea overboard and kick the bozos out of Washington.

[Bandit]

17. So what is the problem? Cut Medicare, Social Security, Education

Highways, etc. just don't cut subsidies to oil, mining, and logging interests. :shrug:

[Lasher]

18. But don't cut military spending. Gotta increase that.

All according to plan.

Edit: I send thee to the greatest page.

[smoogatz]

19. Let the Swift-Boating begin!

How long before the report's author's home address shows up on rightwing blogs, along with photos of his kids and the names of their schools?

[Triana]

20. Noooo! No Kidding?! Who'da Thunk THAAT?

DUH.

We PAY for this Treasury Department to tell us OBVIOUS facts that we already know?

[RobertSeattle]

21. You mean we can't cut taxes to 0.0000001% and have infinite tax revenue?

Damn! I guess Hannity lied to me!

[BootinUp]

25. lol

hillarious.

[redqueen]

22. This is NEWS?!

:banghead:

[Roland99]

23. They're going to need to do more than just one or the other.

Almost Unnoticed, Bipartisan Budget Anxiety
http://www.washingtonpost.com/wp-dyn/content/article/2005/05/17/AR2005051701238.html

Taxes *and* spending both need to be addressed.

[jwirr]

24. Blowback.