Economist Paul Krugman says Wisconsin Republican Rep. Paul Ryan's "Roadmap for America's Future," a plan for a major overhaul of federal spending and taxes, is a fraud.
Ryan isn’t offering fresh food for thought, only “serving up leftovers from the 1990s, drenched in flimflam sauce,” Krugman writes in The New York Times.
“Mr. Ryan’s plan calls for steep cuts in both spending and taxes,” Krugman says. “He’d have you believe that the combined effect would be much lower budget deficits.”
Ryan’s assertion that the Congressional Budget Office estimated that his plan would cut the budget deficit in half by 2020 is false, says Krugman; the CBO merely produced an estimate of the budget effects of his proposed spending cuts without addressing the revenue losses from his proposed tax cuts.
According to Krugman, figures from the nonpartisan Tax Policy Center indicate the Ryan plan would reduce revenue by almost $4 trillion over the next decade.
Moreover, Ryan’s plan wouldn’t reduce the deficit. “All it would do is cut benefits for the middle class while slashing taxes on the rich,” Krugman says.
“The Tax Policy Center finds that the Ryan plan would cut taxes on the richest 1 percent of the population in half, giving them 117 percent of the plan’s total tax cuts,” Krugman notes.
“That’s not a misprint. Even as it slashed taxes at the top, the plan would raise taxes for 95 percent of the population.”
A Ryan spokesman on Friday told Newsmax: “Paul Ryan's Roadmap is a long-term plan to save our entitlement programs from their imminent collapse, pay off our debt, and restart the American engine of growth and prosperity.
"In addition to putting forward the only plan, certified by the CBO, that solves our looming fiscal crisis, Ryan has also identified $1.3 trillion in specific spending cuts that could be enacted right now to rein in the explosive growth of government."
All the tax cuts enacted during George W. Bush's presidency, even those for the wealthy, should be permanently extended, according to Republican U.S. Senate candidate Carly Fiorina of California.
"There's an uncertainty that's hanging over our job creators and causing them to say, 'I'm not sure. I can't invest in the future and hire more people. I don't know how much my tax bill is going to be in three months,'" Fiorina told Bloomberg Businessweek.
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