Houston Democrats

The essential problem is simple. The Republican controlled White House and Congress have increased spending when government revenues were decreasing. All the figures are from the Congressional Budget Office and the Bureau of the Public Debt.

First, tax cuts don’t increase receipts. In fact they decrease them. In 2000, individual tax receipts (receipts from individual tax payers) totaled 1.004 trillion dollars. Many on the right will scream that I am using a boom year for comparison, so in 1997 and 1998 tax receipts were 737.5 billion and 828.6 billion respectively. For the years 2001-2004, individual receipts were 994 billion, 858 billion, 794 billion and 809 billion, respectively. Does anybody see a pattern here? When you cut taxes, revenues decrease, in this case by 18% from 2001 – 2004. Well, call me a liberal, but it looks like the laugher curve is wrong. Also note that Bush’s tax receipts for 2004 were lower than Clinton’s in 1998. As another comparison, individual income taxes as a percentage of GDP decreased over the same time from 9.9% to 7%.

So, the government is taking in less money. At the same time, the Republicans have increased spending, accelerating the gulf between receipts and payments. From 2001-2004, the Republican controlled Congress and White House increased discretionary spending 38%, from 649 billion to 895 billion. The Pentagon is the primary beneficiary: its budget increased 48% from 306 billion to 454 billion. This is where the Iraq war – a voluntary war – really hurts. Discretionary spending increased 27% from 320 billion to 407 billion. (In case you’re wondering, discretionary spending increased 30% over 8 years under Clinton from 212 billion to 277 billion).

So, where does this lead? Holy MasterCard Batman – it’s the debt market! Yes, that’s right, the Republican controlled Congress and White House have once again mortgaged your future so Mr. And Mrs. Millionaire contributor could get a tax break. On September 28, 2001 the total public debt was 5.807 trillion. On September 6, 2005 the total public debt was 7,942 trillion. That’s a 37% increase.

It looks as though Katrina will be responsible for pushing the total US debt over 8 trillion dollars. That total amount is mind-boggling. Bush inherited a surplus and a fiscal situation ripe for paying down the national debt. If he had been prudent, he would have done so. Then, paying for a natural disaster wouldn’t be nearly so bad. But. the Republican controlled White House and Congress went on a spending spree, squandering a surplus into a deficit, and further ruining the US’ finances.

Republican? We can’t afford them anymore.