October 18, 2012

IT’S THE SPENDING, STUPID:  New CBO budget numbers prove the silliness of Obama’s desire to raise taxes while continuing out-of-control spending:

“[D]espite countless changes to the tax code — which included raising the top rate to 90%, then lowering it to 28%, then raising it and lowering it again — taxes as a share of GDP have rarely deviated much from that average.

So, even if all the Bush tax cuts were made permanent, federal taxes would end up slightly higher as a share of GDP than the historic average.

The CBO report also makes clear that it’s out-of-control federal spending that’s driving the deficits.

According to that report, the federal spending as a share of GDP is on track to steadily rise over the next decade and beyond, reaching 22.3% of GDP by 2022.

That’s significantly higher than the 1948-2008 average, and much higher than it’s been under previous Democratic presidents. In President Clinton’s last year in office, for example, federal spending consumed just 18.2% of GDP.

h/t to John Merline, Investor’s Business Daily.

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