Here is the plan fielded by the President today at GWU: $4T in cuts over 10 years with the goal of bringing the deficit to 3% of GDP by 2014.
The $4T is divided into $1T in tax increases (goodbye, growth), $2T in spending cuts from defense and Obamacare (by bringing 33 million people into the healthcare system?), and $1T from ‘savings in interest due to lower spending’. That last is about as magical as fairy dust in budgeting terms.
How does $1T in tax increases, which translates into lower potential investments and growth and less future tax revenues from corporate and individual income, square with $1T in 'interest savings from less spending' when none of the entitlement programs are significantly touched?
If Sarbanes-Oxley was applied to the leaders of this country, many will be jailed or at least tarred and feathered. Imagine a CEO and CFO signing off on financial statements with justifications like that.
This is the local used car dealer saying.‘Come in and spend your money to save it’ or better, 'Vote for this Bill and you'll see what's in it.'